Capital Investments + Pro Bono Support: The Robin Hood Foundation

When I moved to New York City three years ago, I had not heard of the Robin Hood Foundation (RHF) and chances are that you may not have either.  So please, allow me to introduce you: 

The RHF is a specialized foundation that offers intermediary investment services paired with pro bono managerial assistance to deserving non-profits in the New York City area (many of which are new social ventures).   Funding goes to programs that focus on education, jobs/economic security, or survival.  While these non-profits receive rather generous funding and assistance from both private and corporate donors, they also receive strategic pro bono management assistance in the form of operational planning, board recruitment/development, fund development, fiscal management, legal/human resource expertise, real estate assistance, and technology planning among others.  This key feature of coupling financial support with infrastructural guidance is what sets RHF apart from other sources of funding.  This approach does two things – 1) It protects donor’s investments and 2) it ensures that the organizations it supports have the greatest impact possible.  Additionally, RHF has a results-focused accountability structure that it holds its recipients to produce the results they say they will and provides coaching when they do not.

Although competitive, there are a variety of funding sources to support most social ventures.  However, given that these innovations tend to be created by those with little to no business background, it is in the best interest of funders to and ventures to use money wisely through strategic guidance and coaching.  Don’t take this the wrong way, however.  I am not saying that investors should act as “big brother” to their investees, watching every move they make.  Instead, they could implement a tiered structure of sorts where such resources are highly encouraged (or even mandatory) for ventures with little business experience and available for those with greater experience.   This way, investments and impact are maximized – a win-win situation for all involved.