COVID-19 has created an unprecedented situation for the world, but it has revealed the incredible risks facing social institutions as they work to cope with its far-reaching effects. . These are the countless organizations fighting for the rights of essential workers, meeting the needs of low-income communities impacted by the disparities exposed by the virus, and critical to ensuring a just and equitable recovery. We are rethinking systems and structures.
The need for nonprofits and the critical services they provide has never been greater, yet more than half of these organizations struggle to be financially sustainable and meet that demand. In fact, most nonprofits have six months or less of cash on hand, putting them in a precarious position during an emergency. And the rapid spread of COVID-19 puts the entire nonprofit sector at risk of being fundamentally upended by the virus and its economic impact.
From our president
Abnormal measures in case of abnormality
Unprecedented times demand extraordinary solutions. That’s why we’re launching the foundation’s first social bond in the U.S. taxable corporate bond market to ensure nonprofits can continue their critical work serving the world’s most vulnerable communities.
Proceeds from this bond will nearly double grant revenue from about $550 million a year to more than $1 billion a year. We are committed to providing funding to under-resourced communities in the United States and around the world, and to organizations we believe have the necessary capacity to lead recovery to build a more just and equitable world. We will focus our support on stabilization and strengthening.
We can’t meet this challenge alone, so we’d like to share our commitment to help nonprofits working hard for social justice emerge stronger and more effective from this global pandemic. We have partnered with four institutions. Our hope is that more funders, investors, and individual donors understand the critical role they play in protecting society, the economy, and the very ideals of democracy, and that they continue to do so now and in the future. You can join us to ensure we can continue that valuable work.
Since our announcement in June 2020, we have made the following commitments regarding Social Bond proceeds:
- racial justice – Commitment to racial justice and civil rights organizations that address systemic inequalities and support inclusive democracy.
- american heritage – Initiatives that support under-capitalized arts organizations led by Black, Latinx, Asian, and Indigenous communities and primarily located in communities of color.
- black feminist foundation – Seed investment to help launch the first fund founded by Black women and aimed at supporting Black feminist organizations in Africa, Asia, Europe and the Americas.
- puerto rico – Efforts to support the island’s economic recovery from Hurricane Maria and the pandemic
- Caring for All with Respect and Equity (CARE) Fund – Efforts to redefine America’s understanding of care and build a comprehensive and equitable care infrastructure
- southern america – Investing in social justice organizations across the American South that will shape the future of our region and America as a whole.
- generation equality forum – $420 million over five years to address growing gender inequality as COVID-19 exacerbates discrimination and social problems for women and girls around the world.
Learn more about social bonds