Social Ventures fund amplifies modest charitable donations for area nonprofits

By: Deborah Johnson Wood

A unique program at the Grand Rapids Community Foundation is enabling residents with average incomes to pool their giving power and make more substantial investments in the community. In addition, instead of simply writing a check, sticking it in the mail, and letting someone else decide what the money funds, investors can choose the projects themselves and get personally involved.

Members of Social Venture Investors (SVI) invest $2,000 each—$400 for an endowment fund, $1,600 for a funding pool—and the money is used to fund newer, riskier programs proposed by area nonprofits. Three $32,000 grants are awarded annualy, one to each of three nonprofits the investors choose themselves.

In the past six years, SVI members have contributed more than $650,000 to 21 area nonprofits.

In 2007, the SVI received 36 grant applications. A review committee narrowed it down to six programs, and then all the SVI members gathered for live presentations from those six. They chose three to fund—programs at Gilda’s Club, the Women’s Resource Center, and the Literacy Center of West Michigan.

“SVI decides where their own money goes, and it’s money they’re investing now for programs that are happening now,” says Gina Bovee, spokesperson for the GRCF. “The thing that’s common among all the investors is an entrepreneurial spirit, a feeling of ‘we’re going to fund this program because it’s a good program and it’s okay if it doesn’t work.’”

Each program funded keeps SVI apprised of the program’s success or failure. The investors have luncheons at the nonprofits that were funded and use the luncheon as a fun and social means of accountability. The SVI group also meets regularly for social events.

On March 27, the GRCF will host “The Reveal” at 5:30 PM at LaFontsee Galleries—an event revealing the past year’s grantees achievements and the six finalists for this year’s funding. The event is free and open to potential investors.

Source: Gina Bovee, Grand Rapids Community Foundation

Deborah Johnson Wood is the development news editor for Rapid Growth Media. She can be contacted at [email protected].