Having dispersed roughly $43 million in grants last year in the Ocean State, the Rhode Island Foundation focuses on many different sectors including K-12 education, economic development, the arts and small business.
But despite the many issues that keep it busy, the foundation has also played a significant role in fostering innovation.
Every year, it grants three entrepreneurs up to $200,000 over four years through the Carter Fellowship for Entrepreneurial Innovation for innovative ideas that can dramatically improve life in Rhode Island.
Most recently, the organization announced late last year that it would begin an impact investing initiative that aims to invest up to five percent of the foundation’s roughly $950 million endowment in Rhode Island-based nonprofits, for-profit companies and government entities.
“It’s a great place for people to work with us who want to help Rhode Island."
“We are making bigger types of investments in ventures that have both financial and social return,” Neil Steinberg, president and CEO of the Rhode Island Foundation, told Rhode Island Inno. “These are below market from an investment portfolio, but do have return and most importantly are doing good in the community.”
The investments, which will focus on education, health and economic security, can be through debt or equity and range from $200,000 to $2 million, with terms generally no longer than 10 years.
The companies the foundation is looking for typically have three years of operating history, are cash flow positive or are trending that way and have evidence of strong collateral.
They also will show a strong and dedicated governance structure and management team, and have a track record of social impact in Rhode Island.
Thus far, the foundation has made two investments.
The first was a $1 million bridge loan to NPR affiliate Rhode Island Public Radio so the station could relocate its 89.3FM signal in order to expand its audience.
The loan will bridge receivables in RIPR’s $6 million capital campaign. The money will also be used to seed the beginning of a new digital broadcast strategy and hire additional staff.
In its second investment, the Rhode Island Foundation purchased $300,000 worth of preferred stock in the Urban Greens Food Co-op, which is working to open an 8,000-square-foot, community-owned grocery store in the West End of Providence — a federally recognized food desert.
The co-op has the potential to positively impact community health in west and south Providence, create economic security through job availability and profit sharing, and boost the food economy by sourcing from local providers.
Steinberg said the Rhode Island Foundation has historically always done a form of impact investing; the organization has funded a revolving fund for downtown capital improvements.
But other community foundations have started doing impact investing and the new initiative also allows donors to participate.
“It’s a great place for people to work with us who want to help Rhode Island,” he said.
