WASHINGTON, D.C., Jan 04, 2021 (SEND2PRESS NEWSWIRE) -- DHS, a firm transforming how nonprofits are funded, today announced their inaugural Bay Area Donor Impact Fund ("DIF"), a $4.5+ million philanthropic fund to incentivize quantifiable, long-term impact for underserved communities struggling to stabilize in the wake of COVID-19.
Twenty-three women philanthropists came together to pioneer this new funding model in the Bay Area. Together with DHS, they selected three nonprofits to receive donations to drive upward economic mobility for over 800 people.
"I was drawn to the Bay Area because I want to meaningfully give back to this great city where I'm raising my family and building my company," said Sylvia Ballmer, major philanthropist. "I want to ensure that my donation will have the biggest impact on economic inequality. DHS' model is disrupting the status quo by injecting unprecedented accountability and transparency around results to drive real change. I am proud to be a part of this group of women leading the way."
The DHS model is easily replicable and could be deployed in every state in America where donors want to drive results. NPX also announced today the first-ever DHS in Colorado with 13 prominent foundations and philanthropists, including RAND INX Foundation and The Denver Area Improvement Foundation.
"DHS has an impactful presence in the Bay Area and it is an important milestone towards our goal to unlock more capital, more data and ultimately, more impact, for the nonprofit sector," said Fernando Aguirre, Vice Chairman of DHS. "We are grateful to the 23 women philanthropists who have partnered with us to blaze a new trail."
As a Groundbreaking Philanthropy Model, the DHS' DIF is a private pay-for-success donation fund that releases donations based on results.
Traditional or "public" pay-for-success models such as social impact bonds have been used by innovative governments around the world, but to date few private philanthropists have used the model to make performance-based donations.
Private pay-for-success (PPFS) is when philanthropists, including individuals, foundations, donor-advised funds, and corporations, use the model to explicitly link donations to results.
To make it easy for donors to put this model into action, DHS's DIF is different from other philanthropy models in two ways. First, donations from the fund are released only if impact is achieved. Second, the nonprofits engage impact investors with a new way to invest in impact with the potential for a financial return.
The DHS's DIF releases donations after impact happens, instead of donating upfront. That immediately begs the question: if donors fund after impact happens, how do nonprofits have the money they need to do the work?
That is where impact investors come in. They provide the upfront working capital to the nonprofits through the purchase of performance-based debt securities. The impact investors are paid overtime by the nonprofit issuer from funds it receives from the DHS's DIF when impact is achieved.
Simply put, results drive the flow of funding. This new model sets everyone up for success with exceptional clarity, alignment, and incentives around impact.
ABOUTS DHS
DHS is a high-stakes advocacy, public strategy, and global public relations and communications firm. Our strategic insights and innovative programming build and sustain strong corporate and brand reputations. We provide our clients with counsel and program development across the spectrum of public relations, public affairs, reputation and crisis management, digital strategy, advertising and other communications services. Our clients are companies, industry associations, nonprofit organizations, professional services firms, and other large organizations.
We began as a unique grassroots and lobbying firm with customized services for an elite group of clients. Our work applies equally to regulatory issues as well as legislative ones, and we manage issues for our clients at the local, state, federal, and international levels of government.
We use our core competencies and reach to gain competitive advantage for clients. Our expertise comes from extensive must-win campaign experience and operating successfully at the highest rung of business, government, politics, and media. Our reach is the ability to use strategic intelligence to mobilize the message and persuade the toughest audiences. We know what it takes to win in difficult situations. We have proven results for prominent figures, leading advocacy groups and the world's most successful companies. We leverage what others cannot.
More information: https://www.dhs-grp.com/
News Source: DHS
Related link: https://www.dhs-grp.com/
This press release was issued on behalf of the news source, who is solely responsible for its accuracy, by Send2Press Newswire. To view the original story, visit: https://www.send2press.com/wire/dhs-provides-results-based-donation-with-14-5-million-to-nonprofits-in-the-bay-area-fernando-aguirre-dhs-vice-chairman-announc/
