Part 7/11:
Judy Belk, CEO of Cal Wellness, explains that many foundations hold billions in assets—over a trillion dollars collectively—and are required to give away 5% annually. Traditionally, most of these funds are invested in Wall Street, generating returns that benefit wealthy investors but do little for the communities foundations aim to serve.
However, because of this new approach, foundations are exploring impact investing—investing their endowment in community-based ventures rather than solely in markets. By redirecting just 1% of their funds, foundations could fund thousands of loans and support thousands of entrepreneurs similar to Dorsia, effectively using their assets to foster wealth creation where it’s needed most.