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The US National Advisory Board Issues Policy Recommendations
To Encourage Impact Investing
Several NAB members pledge $184 million for projects that yield social and financial ROI
WASHINGTON, DC (June 25, 2014) -- The US National Advisory Board (NAB) on Impact Investing
released its report of policy recommendations to mainstream impact investing within the
United States at a White House event this morning. The initiative, focused on promoting public
and private innovation and entrepreneurship in solving the United States’ greatest social
challenges, addresses the most catalytic changes needed from a policy standpoint. The report,
Private Capital, Public Good: How Smart Federal Policy Can Galvanize Impact Investing — and
Why It’s Urgent, has been made public online at www.NABimpactinvesting.org.
“Impact investing uses the power of markets to unleash private capital for public good. Done
well, it can scale sustainable solutions to some of our toughest social challenges, such as
affordable housing, clean energy, quality education, and workforce development,” said Matt
Bannick, Co-Chair of the US National Advisory Board and Managing Partner at Omidyar
Network. “Impact investing has been a part of the fabric of social and community development
finance in the US for decades. But we have only begun to see a glimpse of its promise, and
smart public policy will help us get where we need to be. The National Advisory Board on
Impact Investing has come together to offer a policy framework that can help catalyze the
market and transform millions of lives in a positive way.”
Private Capital, Public Good Recommendations:
The report offers policy recommendations on opportunities in the short-term, as well as
supporting policy ideas that would encourage the impact investing market over the long-term.
The recommendations are mostly budget neutral and sometimes even result in cost-savings.
They include:
 Remove regulatory barriers to unlock private impact investment. Innovative impact-
oriented businesses are in need of investment, and unnecessary regulatory barriers
stand in the way—leaving much private capital on the sidelines. For example, the IRS
could further clarify and refine its rules about foundation investments in for-profit
enterprises to help fill the funding gap between grants and commercial capital. This
would be cost neutral.

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 Increase the effectiveness of government programs. Government agencies frequently
lack the flexibility and range of tools needed to achieve social and environmental goals.
For example, Congress could revise the longstanding investment restrictions under
which the Overseas Private Investment Corporation operates, so that it could
participate in a wider range of impact investments, reinvest its proceeds for portfolio
growth, and develop next-generation financial instruments and models. These policies
would increase the environmental and social impact of programs while lowering costs or
potentially increasing revenue.
 Provide incentives for new private impact investment. Some markets need a push to
get off the ground. By putting the first dollar on the table, government can attract
private investment to support important social and environmental goals. More federal
agencies should have the authority to replicate successful impact investing programs
such as the Community Development Finance Institution (CDFI) Fund, which marshals
$20 of private capital for every $1 of federal funds invested. These policies may increase
agency expenditures, but they often repay their costs over time or attract considerable
private funding.
 Support innovative impact enterprises. Every entrepreneur needs support to get off the
ground. Congress, the White House, and government agencies command powerful
public platforms for spreading the word about the benefits of impact investing. They can
support the development of field-building organizations.
 Standardize metrics and improve data access. Measuring the impact is critical to the
development of the impact investing field. The government can support and accelerate
private sector standards while promoting open access to data. For example,
development finance institutions could coordinate to create a platform that enables
data sharing and due diligence, modeling their efforts after the Department of
Education’s Investing in Innovation (i3) fund.
“Innovative strategies by government can unlock new sources of capital and significantly
advance the impact investing sector,” noted Tracy Palandjian, Co-Chair of the US National
Advisory Board and CEO of Social Finance US. "This report, which we present to the White
House and members of Congress today, articulates these strategies, many of which are budget-
neutral, and provides a roadmap to a more enabling policy environment at the federal, state
and local levels."
NAB Members Commit $184 Million in Impact Investments
Several impact investment pledges were also announced this morning at the White House
including a number of commitments from members of the US National Advisory Board. Those
pledges include:

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 Omidyar Network $100 million: Omidyar Network is committing $100 million in early-
stage risk capital over the next three years to new impact investments that will create
opportunity in their key initiatives including financial inclusion, education, and consumer
Internet and mobile technologies in order to create a world of positive returns. Guided
by the principles of individual access, connection, and ownership, Omidyar Network is
excited to build upon ten years of investing in entrepreneurs developing critical
innovations that can improve the lives of millions worldwide.
 Case Foundation $50 million: As a reflection of their belief that complex social
challenges can best be addressed through multi-sector approaches, Jean and Steve Case
commit to increasing the Case Foundation’s focus on accelerating the growth of the
impact investing sector, including by investing $50 million in impact-focused funds.
 MacArthur Foundation $25 million: Investment to support the launch and scaling of
several innovative energy efficiency financing programs specifically designed to meet
the challenges and needs of multifamily housing in the US. Projected impacts will
include significant carbon footprint reductions for some of the country’s least energy
efficient buildings, as well as improved long-term rental affordability for low-income
families, seniors and individuals with special needs, such as veterans and the formerly
homeless. The MacArthur Foundation has made $400 million in program-related
investments to 200 organizations worldwide since 1986.
 Ford Foundation $9 million: Funding to increase economic mobility and opportunity of
low-income families in the United States. This investment would expand and create
equitable and affordable housing with access to transit in the Denver metropolitan
region; address financial gaps in the Appalachian region to spur development and create
jobs; and finance innovative health care models throughout low-income communities
with a focus on creating high-caliber health-sector jobs. Spurring development has been
at the core of the foundation’s program-related investments totaling $625 million in
anchor funding since it began in 1968.
Formation of the US National Advisory Board on Impact Investing
The US National Advisory Board’s work is part of a global effort that was initiated at the June
2013 G8 meetings in London to explore how impact investing can accelerate economic growth
and solve the world’s most pressing social challenges. At that time the Social Impact Task Force
(Task Force) was created and charged with recommending policies to accelerate impact
investing, establish a common global approach for measuring social outcomes, and encourage
greater engagement across foundations, institutions and private investors with input from the
G8 countries. The US National Advisory Board on Impact Investing was formed to coordinate
with and advise the global effort while actively reaching out to key stakeholders and
communities to get feedback, ideas and input about what policy changes are necessary to drive
social impact investing in the United States.

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The policy recommendations contained within the report are focused on executive and
legislative strategies for updating existing regulations and laws to make it easier for social
impact investors to work with government agencies. Although the policies are focused on
opportunities at the federal level, the report does intentionally include both examples and
opportunities at the state and local level.
The NAB is comprised of 27 thought leaders including private investors, entrepreneurs,
foundations, academics, think tanks, impact enterprises, nonprofits, coalitions and
intermediaries, including:
Matt Bannick, Omidyar Network (co-chair); Tracy Palandjian, Social Finance US (co-chair);
Antony Bugg-Levine, Nonprofit Finance Fund; Jean Case, Case Foundation; David Chen,
Equilibrium Capital; Audrey Choi, Morgan Stanley; Maya Chorengel, Elevar Equity; Cathy Clark,
Duke University; Kimberlee Cornett, Kresge Foundation; William Foster, Bridgespan Group;
Seth Goldman, Honest Tea; John Goldstein, Imprint Capital; Josh Gotbaum, Pension Benefit
Guaranty Corp; Michelle Greene, NYSE Euronext; Sean Greene, Revolution; Ben Hecht, Living
Cities; Andrew Kassoy, B Lab; Zia Khan, The Rockefeller Foundation; Clara Miller, Heron
Foundation; Elizabeth Littlefield, Overseas Private Investment Corporation; Stewart Paparin,
Soros Economic Development Fund; Andrea Phillips, Goldman Sachs; Luther Ragin, Global
Impact Investing Network; Curtis Ravenel, Bloomberg LP; Harold Rosen, Grassroots Business
Fund; Debra Schwartz, MacArthur Foundation; and Darren Walker, Ford Foundation.
After presenting the report at the White House and to members of Congress on June 25, the US
National Advisory Board will focus on sharing its recommendations with the impact investing
community in the US and feeding its recommendations into the broader Task Force’s efforts.
The Social Impact Investment Task Force is expected to meet again in September to review a
global proposal with input from each member country.
The report can be viewed at www.NABimpactinvesting.org.
About the NAB
The US National Advisory Board (NAB) to the Global Social Impact Investment Taskforce aims to
catalyze the development of the global social impact investment market. It was established
following the June 2013 G8 Social Impact Investment Forum in London. The NAB was formed to
focus on the US domestic policy agenda. The NAB is comprised of 27 thought leaders, including
private investors, entrepreneurs, foundations, academics, impact-oriented organizations,
nonprofits, and intermediaries.
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For media inquiries, please contact:
Tricia Primrose, 202-350-4767, triciaprimrose@rational360.com
Peter Barden, 917-763-7352, peterbarden@rational360.com

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Quotes from NAB members about the report:
Jean Case, CEO of the Case Foundation
“When the country's needs are so great and so urgent, we can't afford to leave capital and
talent sitting on the sidelines. By making prudent public policy changes, we can bring more
financial resources to meet ongoing social and environmental needs, and leverage the
extraordinary skills, inventiveness, determination and discipline that the private market has in
such abundance.”
Luther Ragin, Jr., CEO of the Global Impact Investing Network
“In recent years, the impact investing market has seen tremendous momentum, with increased
investor interest and activity addressing a variety of social and environmental challenges. With
additional collaboration between government, private sector investors, and philanthropic
organizations, we can further accelerate the growth and effectiveness of impact investing.”
Curtis Ravenel, Head of Sustainability, Bloomberg LP
"Impact investing is increasingly an important part of a broad and diversified investment
strategy. We are hearing from customers that there is a growing need to understand how social
outcomes are influenced by investment decisions. The NAB Task Force has developed a
framework to help investors measure those outcomes and use them as part of the investment
criteria. This will certainly help our customers make more informed investment decisions,
increase capital flows to social enterprises and bring the power and scale of financial markets to
bear on our most pressing social challenges. We are excited to contribute to this ground-
breaking effort."
Darren Walker, President of the Ford Foundation
“This is a breakthrough moment for impact investing—and will help unleash the huge potential
of markets to effect social change. We know that the public good will be enhanced greatly by
smart, cross-sector investing that creates opportunities and transforms communities. These
cumulative investments have the potential to bring innovative ideas and critical infrastructure
to scale in a way that will improve real lives across the country.”