How It Works:
EverGift is committed to invest in innovative companies that transform the way the world combats poverty.
Hybrid non-profit ventures
The entrepreneur sets up a non-profit organization but the model includes some degree of cost-recovery through the sale of goods and services to a cross section of institutions, public and private, as well as to target population groups. Often, the entrepreneur sets up several legal entities to accommodate the earning of an income and the charitable expenditures in an optimal structure. To be able to sustain the transformation activities in full and address the needs of clients, who are often poor or marginalized from society, the entrepreneur must mobilize other sources of funding from the public and/or philanthropic sectors. Such funds can be in the form of grants or loans, and even quasi-equity. (1)
Social business ventures
The entrepreneur sets up a for-profit entity or business to provide a social or ecological product or service. While profits are ideally generated, the main aim is not to maximize financial returns for shareholders but to grow the social venture and reach more people in need. Wealth accumulation is not a priority and profits are reinvested in the enterprise to fund expansion. The entrepreneur of a social business venture seeks investors who are interested in combining financial and social returns on their investments. (1)
Our potential investments are closely examined by our Investment Committee who uses their cumulative knowledge to reduce default risk and assess product/service viability.
Potential investments are identified through both business plan submissions and proactive research by the EverGift management team. All investments go through an Initial Due Diligence process in which the potential investment opportunity is vetted and discussed by senior members of the EverGift Executive Committee. Investments that make it though our Initial Due Diligence then receive Full Due Diligence from our experienced research team, this process includes a review of the enterprise and it’s leaders in the general areas of (1) social impact, (2) financial viability, (3) operations, (4) management, (5) accounting and (6) legal. Given the organization meets all Full Due Diligence requirements, the investment opportunity is then presented to the Investment Committee, which is responsible for conducting the final discussion on the potential investment. The Investment Committee is ultimately responsible for approval or rejection of a investment.
Sources: (1) Schwab Foundation, www.Schwabfound.org.