The net proceeds of the Bonds are expected to be used to provide grant funding for Opportunity Investments to organizations, projects, and programs meeting The Endowment’s grant-making criteria or as investments consistent with its Program-Related Investment (“PRI”) process. The Endowment’s target population of existing and prospective grantee and PRI partners are largely dependent on philanthropic funding and thus are particularly vulnerable to operational, employment, and mission disruption as a result of the wider economic slowdown caused by COVID-19 control measures.
The Endowment will have broad discretion as to its use of the proceeds of the Bonds, provided that such use complies with The Endowment’s tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and The Endowment’s classification as a private foundation.
The Endowment will use its three key organizational goal areas as a primary screen in determining which nonprofits will receive Opportunity Investments. This screen will ensure consistency with The Endowment’s goals and program areas that support the movement for health equity and racial justice in California – with a focus on target populations impacted by inequity.
The three goal areas are described below:
People PowerDeveloping young and adult leaders to work intergenerationally to raise up the voice of marginalized communities and promote greater civic activism as essential building blocks for an inclusive, equitably prosperous state.
Reimagined Public InstitutionsTransforming our public institutions to become significant investors in, and champions of racial and social equity, and in the healthy development and success of young people for generations to come.
A 21st century “Health for All” SystemEnsuring prevention, community wellness, and access to quality health care for ALL Californians.
To better target resources where the need to stabilize and strengthen the infrastructure and capacity of key non- profit organizations is greatest, The Endowment will further focus its Opportunity Investments in 6 priority areas:
Supporting organizational infrastructure to sustain civic engagement and develop intergenerational leaders reflective of marginalized communities
Establishing a statewide grassroots network dedicated to universal health coverage and health systems reform
Health & Wellness
Strengthening public health institutions and community partnerships for health and wellness
Building workforce pipelines that will expand and diversify the health workforce across California
Supporting local systems, and infrastructure to respond to the needs of communities most impacted by the health and economic effects of disasters.
Research & Evaluation
Linking civic leaders with researchers and bringing data, analysis, ideas, and action together for learning and impact.
Other than Bond proceeds used to pay for costs related to the issuance of the Bonds, The Endowment expects to allocate 100% of remaining Bond proceeds to Opportunity Investments over the course of 2-3 years. With the use of multi-year grant formats, full distribution of the proceeds may take an additional 1-3 years.
Process for Project Evaluation & Selection
The Endowment’s leadership and program teams will be responsible for selecting the Opportunity Investments. Grantees and PRI partners will have undergone a rigorous proposal application process administered by program teams that are subject matter experts in their respective fields.
Opportunity Investment proposal applications evaluate prospective grantees based on a number of criteria including, but not limited to, (i) the issues their organization/project addresses, (ii) geographic focus and/or communities and populations their organization/project intends to support, (iii) long-term goals, (iv) existing revenue sources, (v) potential impact, (vi) prior experience, and (vii) diversity goals and efforts.
Proposals for Opportunity Investments will be thoroughly reviewed to ensure The Endowment complies with all legal requirements (including, but not limited to, Internal Revenue Code requirements and U.S. anti-terrorism laws) for charitable giving. The Endowment has designed its grant making process – from preparation of the grant recommendation to processing final reports – to conform to applicable legal standards and The Endowment’s procedures and standards. Opportunity Investments will be monitored by The Endowment on an ongoing basis through visits, meetings, and written reports.