Milwaukee, Wis., July 28, 2020 – To fuel an equitable economic recovery, the Greater Milwaukee Foundation will dedicate $30 million over the next five years to new impact investments focused on producing positive social and economic impact in the Milwaukee region. The Foundation is committing $15 million of existing resources and will seek the remainder through private fundraising.
Complementing this long-term commitment, the Foundation recently provided over $620,000 in immediate support to sustain local small businesses.
“The COVID-19 outbreak coupled with large-scale civil demonstrations for racial justice have only heightened the need for greater action and investment in our local communities,” said Ellen Gilligan, Foundation president and CEO. “Philanthropy, in partnership with community, must concentrate now on our long-term economic recovery – not just from the acute needs caused by the current crises but from the chronic disparities that have long kept Milwaukee from reaching its potential.”
Driven by a generational commitment to racial equity and inclusion since 2016, the Foundation is concentrating an increased share of resources among people and places that have been subject to declining or absent investment through the years and using a range of philanthropic tools to do so. The Foundation intends these strategies to create jobs, provide access to capital and help build personal wealth, which directly influences one’s ability to improve the quality of their life and those around them.
By doubling the $15 million already mobilized by the Foundation, community investors can join in catalyzing significant economic activity through impact investing. This tool offers a means of generating both social and financial returns, allowing capital to be reclaimed and reinvested in new projects. The $30 million impact investing strategy is just one component in the Foundation’s comprehensive approach to expanding resources that benefit the community.
“Now is the time to come together to start reversing the devastating effects of systemic racism that have held back families for generations, creating barriers for people of color to participate meaningfully in building wealth and economic growth,” said Jackie Herd-Barber, chair of Foundation’s Board of Directors. “For those of you – individuals, families, organizations – who are compelled to create lasting change in our community, for those of who are looking for a tool to leverage investment, for those of you who want to do something tangible to help transform our neighborhoods from the inside out, we invite you to join us, invest with us.”
Building off a $1 million impact investing pilot program that supported the growth of 47 new small businesses, helped create more than 85 jobs, redeveloped dilapidated properties into productive commercial spaces and attracted $4.9 million in additional public investment to local neighborhoods, the Foundation is scaling up its deployment of assets for community benefit.
The Foundation’s program focuses on three core priorities:
“Thoughtful projects that would bring excellent value to the community but are encountering barriers to traditional financing are often strong candidates for impact investing,” said Kathryn Dunn, senior vice president of community impact. “We’ve shown how this instrument cancultivate entrepreneurship – particularly in communities of color – increase employment opportunities and support creation of vibrant, mixed-income communities. Such investment is needed now more than ever.”
Beyond the long-term approach of impact investing, the Foundation has provided immediate support to Milwaukee’s the small business sector by awarding grants to community intermediaries who offer business assistance:
African American Chamber of Commerce is using its $180,000 grant to provide small grants to businesses led by people of color who need support for rent, payroll and other emergency needs.
Latino Entrepreneurial Network is using its $150,000 grant to offer small grants and loans to businesses that were likely not eligible or not successful in applying for federal stimulus dollars. Business coaching and training sessions are required for access to these resources.
King Drive Business Improvement District is using its $150,000 grant to add capacity to the BID and provide direct support to small businesses impacted by marches and protests that have occurred along North Martin Luther King Jr. Drive.
LISC Milwaukee is using its $100,000 grant to make small grants for immediate needs like rent and payroll available for businesses in several city business improvement districts. The grant also supported a modest micro loan program for businesses in the commercial corridors of several Milwaukee neighborhoods.
Sherman Phoenix businesses and operators have received a total of $42,000 in grants for rent assistance and other relief through the advised funds of multiple Foundation donors.
Together, these grants will have a positive impact on an estimated 200 small businesses.
Recognizing that the need is great and many factors contribute to the health of the community’s economy, the Foundation is taking a holistic approach to recovery that centers the voices and priorities of people most affected – collaborating on solutions that help families, neighborhoods and businesses while also focusing on long-term systems change. Interconnected efforts supported by the Foundation further include:
The Greater Milwaukee Foundation is Wisconsin’s largest community foundation and was among the first established in the world. For more than a century, the Foundation has inspired philanthropy by connecting generous people to community needs that align with their interests. The Foundation was founded on the premise that generosity can unlock an individual’s potential and strengthen the community as a whole for everyone who lives here. We work in partnership with those who are committed to ensuring greater Milwaukee is a vibrant, economically thriving region that comprises welcoming and inclusive communities providing opportunity, prosperity and a high quality of life for all.
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Jeremy Podolski, Marketing and Communications Manager