Office of Social Innovation and Civic Participation Blog
- Posted byon October 1, 2014 at 4:05 PM EST
For two decades, the Community Development Financial Institutions Fund (CDFI Fund) has been an important element of an economic strategy designed to create opportunity for all and strengthen communities by increasing access to capital. Today, the Obama administration celebrated its 20th anniversary by convening government officials, business executives, and community leaders at the Treasury Department to mark the achievements of the CDFI Fund and to look at the prospects for its continued success.
The CDFI Fund plays an important role in addressing the economic needs of low-income communities, making progress to ensure all parts of our economy are able to grow together. Its programs help attract private-sector investment to communities that lack access to mainstream financial institutions. It provides financial tools to nearly 900 CDFIs, mission-driven financial institutions that serve low-income borrowers in underserved urban and rural areas. Since its creation, the CDFI Fund has awarded more than $2 billion through its monetary award programs and allocated $40 billion in tax credit allocation authority. It has also issued $525 million in guarantees for community development under recent awards of its bond guarantee program. Combined, these programs have responsibly leveraged billions more in private capital, advancing economic development and creating jobs in underserved communities.
- Posted byon September 23, 2014 at 3:22 PM EST
For the past five years, the Social Innovation Fund (SIF), a program of the Corporation for National and Community Service, has transformed how charitable funds flow into communities. SIF has been used as an investment model to expand the reach of results-driven programs.
Last Friday, capping off a week of celebrating SIF’s first five years, the White House hosted the first-ever “What Works Showcase”: a live, interactive event that featured a diverse selection of SIF investments, including social entrepreneurs leading innovative nonprofits and social enterprises transforming lives and strengthening communities across the country. In this science fair-style event, 10 high-impact organizations presented their proven, novel solutions to address some of our toughest challenges in the areas of economic opportunity, healthy futures, and youth development.
These demonstrations helped translate evidence-based policy into tangible, real-life stories. We featured organizations such as Single Stop, an organization that helps solve the barriers facing low-income students and increase their chances of earning a college degree. SIF funding has enabled Single Stop to go from serving nearly 24,000 students in the first two years of their Community College Initiative to more than 100,000 over the next three years, and it is enabling their next phase of growth to reach over 1 million people annually.
We also hosted Medical AIDS Outreach of Alabama, which is bringing HIV specialty care to rural Alabama and elevating the standard of, consistency of, and access to care for rural Alabamians. They demonstrated telemedicine technology providing medical services to HIV-positive individuals living in rural Alabama. As a result of an SIF-enabled investment from AIDS United in 2010, Medical AIDS Outreach has been able to provide access to care in 47 of Alabama’s 67 counties and offered better access to HIV-specific primary medical care by eliminating long-distance travel for these services.
In just five years, SIF has invested more than $700 million in public and private funds, empowering over 200 nonprofit sub-grantees representing more than 35 states, and in turn serving hundreds of thousands of individuals in need. When it comes to tackling the most pressing problems, SIF has catalyzed impact across the country.
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The Social Innovation Fund (SIF), a key White House initiative and program of the Corporation for National and Community Service (CNCS), combines public and private resources to grow the impact of innovative, community-based solutions that have compelling evidence of improving the lives of people in low-income communities throughout the United States. The SIF invests in three priority areas: economic opportunity, healthy futures, and youth development. In just a few years the Social Innovation Fund (SIF) and our private-sector partners have invested more than a half a billion dollars in compelling community solutions-- $177.6 million in federal grants plus $423 million in non-federal match commitments in 20 intermediary grantees and 217 nonprofits in 37 states and the District of Columbia.
- Posted byon July 16, 2014 at 3:37 PM EST
During his June visit to the Standing Rock Sioux Tribal Nation in Cannonball, North Dakota, the President re-emphasized the Administration’s focus on strengthening Native American communities through education and economic development. Thus, as part of the Obama administration’s commitment to create lasting change in Indian Country, we are pleased to announce $3 million in AmeriCorps grants to support Native American communities.
These funds will bolster President Obama’s priorities for tribal communities and increase the number of AmeriCorps members serving these communities by 41 percent. AmeriCorps members serving in these programs – most of whom will be recruited from Indian Country – will be eligible to earn $1 million in education scholarships to help pay for college or repay their student loans -- putting them on track for greater economic opportunity in the future.
Through these 17 tribal grants – the highest number approved in the past decade – the Corporation for National and Community Service (CNCS) will support more than 250 AmeriCorps members serving with tribal organizations in 13 states. AmeriCorps members will serve side-by-side with tribal elders and local leaders. They will work to tackle key issues facing Native American communities:
- Posted byon June 25, 2014 at 7:49 AM EST
Today, at a White House roundtable on impact investing, senior Administration officials met with more than 20 private-sector investors answering the President’s call to action by announcing their new commitments to make more than $1.5 billion in investments that intentionally generate sound financial return as well as measurable social or environmental impact. New Administration actions will catalyze additional private sector impact investments and support these companies and entrepreneurs. Finally, according to a new private sector report released today, such smart policy interventions could help grow the global impact economy significantly.
President Obama has described this as an “all hands on deck” moment that requires all of us to pull together to create the change we seek. To tackle our most significant challenges, from combating childhood obesity to fighting climate change, from ensuring all hard-working Americans have the skills to get ahead to preparing American students for a 21st Century economy, to doubling access to power in sub-Saharan Africa, we need cross-sector collaboration fueled by a mix of improved regulation and public resources with private capital and philanthropic support. “Impact investing” stands out as one fast-growing model that brings together these strands. This model of investing to generate economic value as well as measurable environmental and social benefit is gaining traction across the country and around the world.
As part of today’s White House event, firms such as Prudential and the Capricorn Investment Group; foundations such as the McKnight, Ford, and MacArthur Foundations; and a wide range of family offices participated and discussed new impact investments.
Building on President Obama’s year of action using his pen and phone, the Administration will take a number of significant steps to encourage even more investors, foundations, businesses, and entrepreneurs to embrace this model. This includes announcements by SBA, USAID, and Treasury designed to facilitate the flow of private capital toward sustainable business models. These steps are just the latest in the Administration’s ongoing effort to support the growth of private sector led impact investing as a strategy to create jobs and strengthen communities in the U.S. as well as to advance the President’s global development goals.
Finally, the private sector U.S. National Advisory Board to the Social Impact Investment Task Force also released Private Capital, Public Good: How Smart Federal Policy Can Galvanize Impact Investing – and Why It’s Urgent. The Advisory Board, which participated in our White House event, includes a blue chip group of 27 leaders from across the investment, business, foundation, academic, and non-profit sectors.
For more information on all of these commitments, see the Background on the White House Roundtable on Impact Investing.
Byron Auguste is Deputy Assistant to the President and Deputy Director of the White House National Economic Council
Tom Kalil is the Deputy Director for Technology and Innovation at the White House Office of Science & Technology Policy
Jonathan Greenblatt is Special Assistant to the President and Director of the Office of Social Innovation and Civic Participation in the Domestic Policy Council
- Posted byon May 12, 2014 at 11:14 AM EST
The President launched Power Africa in Africa almost one year ago to double access to power in Sub-Saharan Africa. With a private sector orientation and transaction focus, Power Africa has already catalyzed more than 35 private sector partners to commit more than $14 billion for energy investment in Africa. Their engagement is critical and emblematic of the National Impact Initiative that seeks to spread market-based models and private investment to create jobs and economic value while solving social and environmental problems.
Recognizing that Power Africa cannot achieve its energy access goals through large generation projects alone, the Obama Administration is exploring opportunities to unlock further investment in and growth of small-scale energy systems at the household and village level. Toward that goal, the Administration hosted two events in the last week – one here at the White House and a second roundtable at Stanford University in Palo Alto, California – to engage nearly 60 impact investors and venture philanthropists interested in small-scale energy investment in Africa.
Consistent with the core modus operandi of Power Africa to date, this new effort will leverage the combined capabilities of 12 U.S. government agencies to deploy the “glue and grease” needed to assist private sector transactions to close. It will also build upon early Power Africa successes, such as:
- Off-Grid Electric – the pioneering household solar services company initially supported by early-stage grant funding from the Development Innovation Ventures and the U.S.-Africa Clean Energy Finance Initiative, an innovative finance program developed by the Overseas Private Investment Corporation, the U.S. Department of State, the U.S. Trade Development Agency, and the U.S. Agency for International Development (USAID)
- Kiwira River Hydro – a 10MW run-of-river hydropower project in Tanzania that received a USAID Development Credit Authority credit guarantee that reduced its financing costs and paved the way to financial close
With input from individual investors, investment funds, single family offices, and large foundations seeding and scaling innovative off-grid business models, this new effort will also develop new capabilities to strengthen the enabling environment and catalyze further private sector investment into off-grid and mini-grid energy solutions.
We know that great ideas and impactful small scale energy investments aren’t limited to the people that joined us at the recent events. Do the activities of your investment fund or foundation align with this new strategy under the President’s Power Africa initiative? Are you actively pursuing small-scale energy deals in the six Power Africa countries that could use a little glue or grease? Do you have thoughts on steps the public sector can take to further unlock investment and growth?
If you have such thoughts, please email us at firstname.lastname@example.org. Working together, we can increase access to energy, eradicate extreme poverty, and achieve sustained, inclusive economic growth.
- Posted byon February 25, 2014 at 12:42 PM EST
In 2009, when President Obama signed legislation that created the Social Innovation Fund (SIF), we intended to invest in what works and catalyze innovative strategies to help tackle some of our nation’s greatest challenges.
Today, the Social Innovation Fund announced its fourth open competition. The Administration is making available $65.8 million in grant funding for intermediary organizations that want to accelerate the growth of effective, evidence-based community solutions. This is the largest grant pool in the history of the program.
Intermediaries can apply for grants that range from $1 million to $10 million. Such funds are to be used to expand the efforts of high-impact nonprofits focused on some of our toughest challenges, specifically expanding economic opportunity, building healthy futures, and improving youth development. As a public-private partnership, applicants also can use the prospect of SIF dollars to attract new non-governmental investors to amplify the public funds.
The 2014 competition has some special features that distinguish it from prior years. It prioritizes applications with strong plans to support Opportunity Youth and that endeavor to leverage the Collective Impact model of community organizing to create social change. The competition also will seek to support key Presidential priorities, particularly those designed to expand opportunity for low income individuals and distressed communities, such as the Promise Zones initiative.
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