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i4:Where Philanthropy and

For-Profit Investing in IsraelOverlap to create

sustainable social solutionsHila DekelMichael Lustig

November, 2015

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Impact Investing “101”What are we talking about?

Corporate(1st

sector)

Government (2nd)

Philanthropy (3rd)

IMPACT

(4th)

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Example: GigaWatt Global - Rwanda

• GigaWatt Global: Israel-Based Company

• The Rwanda Project: 6% of the country’s power (8.5MW); only 15% of country is grid-connected

• Economic (grid-parity) and Environmental impact

• Social Impact: A piece of field revenue (pe’ah) covers the Medical expenses of an adjacent Youth Village (500 kids) for the next 25 years.

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Impact Investing:Solving Challenges while Generating Profit

•BULLET HEADER HERE

• Bullet here

• And here

• No more than 5 lines please!

• Let’s keep it clean. It forces clear thinking.

• Cool? Great!

Source: Global Impact Investing Network website; Antony Bugg-Levine, Impact Investing Bold Models to Drive Development at Scale, Beyond Profit Magazine, May/June 2009.

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Creating the i4 Committee

•No pre-existing structure within UJA-Federation of NY

•Endowment - maximizing total return (no major concern for mission alignment)

•Commissions – sole executors of mission related initiatives

•i4 as a cross-Commission initiative (Finance, allocating Commissions, FRD)

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UJA-Federation’s first Impact Investment:The Yozma Fund

•Tender Process from Government of Israel to create “social businesses” on issues of:

Youth-at-riskSpecial needs

Recovering addictsReleased convicts

Chronically unemployedElderly

Single parents

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The Yozma Investment Structure / Funding

•Israeli Government mandated the following structure for each of two funds:

• ₪22.5MM [$5.7MM] Total Fund Sizeo 40% Philanthropic Funds (₪9MM [$2.3MM])

o 40% Matching Gov’t Funds (₪9MM [$2.3MM])

o 20% Investor Debt (₪4.5MM [$1.1MM])

Note: The (combined) Philanthropic & Government funding acts as “Equity” supporting the Debt.

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Existing Businesses of IVN & Dualis

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i4: Going Forward

• Monitoring/oversight/engagement with IVN & Dualis (synergies with Commissions)

• Evaluate other opportunities:

o JAFI Crowdsource Lending

o Hura Catering

o Social Finance Israel (Two Social Impact Bonds)

o JLens (Advocacy/Education)

• Role of UJA-Federation of NY

o Pure Philanthropy / Philanthropic Investment, or

o Endowment Investment?

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Why Should a Federation Care?

• COMMUNITY organization - elevates collective efforts in all sectors

• Endowment investments should have a degree of mission-alignment

• Good way to engage with Millennials

• a form of grant making with built-in sustainability

• The tide is turning – be ahead of the curve!