IP Funder SpotlightsHere are quick summaries of the grantmakers we are following, along with key details about their operations and current activities. Today I will be focusing on the Kresge Foundation’s environment program, a Troy, Michigan-based organization that funds cities across the country.
What are these programs all about?
The Kresge Foundation’s environment program focuses on three things: cities, climate change, and equity. Its goal is to reduce and adapt cities to climate change, while making sure that low-income communities and people with disabilities are included in decisions and get the benefit of such work. The program’s goal is to increase opportunity in America’s cities.
Kresges’ goal is to ensure that its climate change funding multi-solvesi.e. simultaneously helps to improve quality life, economic well being, and equity. It issued an example of this last year:Round of grants totaling $8.4 MillionTo improve health and combat climate change in low-income communities.
The program also has three strategies to complement its three focus areas. One is leadership development: building urban leaders’ capacity to support equitable climate approaches. Information: Providing leaders with the evidence and tools necessary to take equity-centered, climate action is another. The third is transforming systems: Transforming urban infrastructure, especially water systems.
Why you should care
Kresge is one of the nation’s most prominent climate and environmental grantmakers. It is also one the most committed to equity through its funding, endowment investments, or commitments in this sector. This foundation could be the right match for you if your nonprofit is focused on urban and community-based organizations that want to launch programs with this focus.
Where the money comes
Sebastian Spering Kresge was the son of farmers from Switzerland who were born in Pennsylvania in 1867. He was able teach and clerk in a grocery shop before starting his own business selling hardware. He later opened a five-and-10-cent store in Detroit, which he would eventually grow into the international retail chain Kmart Corporation. He was 57 years old when he founded Kmart Corporation in 1924. establishedThe Kresge Foundation, which he gave over $60 million to during his life. The foundation had$4.2 BillionIn assets as of 2020
Where the money goes
Kresges environment program received $18 Million of $110,000,000 in 2020. (Data for 2021 is not yet available. There is a sweet spot in terms of how much Kresge grants: Nearly all recent Kresge grants were six-figures and more than half were for $600,000. According to its website grants database. Grants were given to organizations in metropolitan areas like Atlanta, Los Angeles, New York and Springfield, Massachusetts.
Many recipients were community-based organizations, often working at intersections of health and environment. However, recipients can also include national groups or intermediaries. Many recipients have a climate-focused organization, but some do. Kresge likes to support networks and coalitions. Take Urban Sustainability Directors Network. This network is for professionals in local government. They received two grants of $750,000 each.
Kresge is not content to just give its mandated 5 percent and call it a day. The foundation claims that the foundation has made 12 social investments since 2013. It has used its endowment for loan dollars, loan guarantees, and investment capital totaling $47million. These include green banks such as Inclusive Profit Capital and socially-driven for-profit companies such as PosiGen or Greenprint Partners.
Who calls the shots
Kresges 14-memberBoard of directorsHe has extensive experience in education, finance, and philanthropy. The president of Drexel University and a professor of law at the University of Michigan are two examples of members from the academic community.
A former director of White Houses Domestic Policy Council, an ex-United States undersecretary of State, a former assistant secretary of U.S. Treasury and the former speaker of Michigan House of Representatives are just a few of the board members with public service experience. Former or current leaders at the Draper Richards Kaplan Foundation (Michigan Health Endowment Fund) and Kipp Foundation are all Philanthropy professionals.
Many members are represented across these sectors more than once, such as foundation president Riprapson. He has served in government (as deputy Mayor of Minneapolis), academia (6 years at the University of Minnesotas Design Center), and, of all things, in philanthropy. He was with Kresge from 2006, and before that, the McKnight Foundation.
There are also at most three directors with ties either to finance or health, including the board lone family representative and physician Cynthia Kresge. The foundationLists the board membersIt does not share demographic information such as race/ethnicity or gender on its website.
Are diversity and inclusion being tracked and shared?
Kresge monitors the gender and racial/ethnicity of its staff right down to the program level. Half of the six environment program staff members who are full-time are white. The other half are people from color. All of them are women. (The foundation also tracks staff working with other departments that have a similar composition but with gender diversity. Kresge estimates that 70% are people of colour. The staff areOnline listingThese demographics are not publically available.
The foundation’s efforts in diversity and inclusion tracking extend far beyond its ranks. Kresge was among the top-40 climate funders to make a commitment to theClimate Funders Justice PledgeIt asks foundations for 30% of their climate funding to be committed to BIPOC-led groups that work in environmental justice. In recent years, 33% of its climate funding has been committed to such groups. Kresge also fundsGreen 2.0It tracks diversity at foundations and NGOs, and it shared its internal demographics publicly with the organization until 2020. (Green 2.0 has switched to an anonymous format in which foundations can be identified). It is one of approximately 50 foundations that has signed the agreement.Pledge for Disability Inclusion.
Open door or barbed wire?
The main door to the environment program is kept closed but there is a side entry. The foundation has a list that includes invitations to grant applicants, and while they do not accept unsolicited grants proposals.Open funding calls. ARecent oneNot from the environment programaskedfor resident-supported neighborhood project by Detroit-area nonprofits. The foundation also has a detailed application process for grant seekers who are invited to apply.How to ApplyThis page contains information about the process, specific programs, and a comprehensive FAQ.
Is it sunlight or secrecy
Kresge is in line with peers. grants databaseFilters for year, focus, focus, and location. It dates back to 2009. It dates back to 2009. Kresge has another one for itsSocial investmentsWith all the filters and a third to track it’s own funding,InitiativesI’ve never seen anything like it. These are definitely worth bonus points. It also publishes its audited financial statement and tax filings dating back to 2015. It even offers a guide for tax filings. (More bonus points!)
What can we expect next?
Kresge is well-known for its social investments. From what I’ve seen, each move is carefully considered and weighed for impact. The foundations are important.Website indicatesIts commitment to mission aligned investments is set at $350million, or 8.3% its endowment. (Kresge has not responded to a question asking if that has changed. The world is on fire so why not do the right thing and divest from fossil fuels? It could also join growing numbers of other peers who are quitting fossil fuels.
