On the afternoon of June 6, 2016, President of Dongrun Foundation Dongmei Kong was invited to attend the Social Equity and Social Impact Investment Seminar held in Beijing. The meeting was presided over by Mai Lu, Secretary General of China Development Research Foundation, and Chairman of US Alliance on Social Impact Investment and President of the Ford Foundation Darren Walker was invited as speaker at the roundtable dialogue. Dean of School of Economics, Peking University Qixiang Sun, President of YouChange Foundation Ping Wang, representatives from the National Development and Reform Commission and other philanthropy research institutions and foundations also attended the seminar. Dialogues and discussions were held on social impact investment, a subject of global attention in recent years.
President of the Ford Foundation Darren Walker (left)
Secretary General of China Development Research Foundation Mai Lu (right)
Dongrun Foundation has always been dedicated to encourage science innovation and development among Chinese youth, setting up science awards to provide talented high school students with an arena for fair competition and more opportunities for personal development. The Foundation explores new ways of science talent search and training and presents new possibilities of charity work.
President of Dongrun Foundation Dongmei Kong at the Seminar
Social impact investment was first proposed by the Rockefeller Foundation in 2007. The idea is to contribute to social welfare through investment that can also generate capital returns, achieving measureable social and environmental impact alongside financial gains. It is an alliance of capital and social welfare. The global market of impact investment is estimated to be 36 billion dollars at present and will reach 400 – 1000 billion by 2020.
In April 2011, British Prime Minister David Cameron raised 600 million pounds through banks and set up Big Society Capital to support the development of grass-root charities and social enterprises. Then with its first round of fund-raising, Big Society Capital provided 450,000 pounds to joint projects launched by social impact and private equity funds to support the release of social impact bond as well as to improve the living conditions of underclass youth in eastern London through a large-scale aid program in schools.
Impact investment is not a new term globally, but it is still a new form of investment in China. The country is under a period of social transition. With rapid economic growth and interest differentiation, social disputes and conflicts intensify, and social welfare institutions are under ever greater pressure because of social problems regarding environmental resources, education resources and various other issues.
As countries across the world embrace social impact investment to “address social issues with business approaches”, many philanthropists and foundations in China are beginning to adopt the idea and try to introduce commercial mechanism into the philanthropy industry to make social programs more efficient and solve more problems.
Background Information
Ford Foundation
The Ford Foundation was established by the American “Car King” Henry Ford (1863-1947) in 1936 to support the research work on important issues regarding education, arts, technology, human rights, international security, etc.. It provides financial aid to build research institutions, set up scholarships and dispatch experts to other countries, and makes donations of books and instruments. By supporting organizations and research units from home and abroad, the Foundation is committed to bring influence to America’s social life, cultural and educational development and the government’s domestic and foreign policies.
China Development Research Foundation
China Development Research Foundation established in November, 1997 is a non-profit organization initiated by the Development Research Center of the State Council. As a public foundation operating nation-wide, it is committed to promote policy studies, advocate scientific decision making, and support the nation’s development. Besides providing financial aid to research works on related subjects, academic seminars, professional training and international exchange programs, the Foundation also issues award to individuals with outstanding contributions to policy consultation and related academic studies.