May 05, 2009
White House Seeks $50-Million for 'Social Innovation'
By Ian Wilhelm
President Obama is asking Congress to provide $50-million to support creative and successful nonprofit groups as part of a new Social Innovation Fund, Melody Barnes, director of the White House domestic policy council, told participants Tuesday at the Council on Foundations’ annual conference, in Atlanta.
The fund, which was authorized by the Edward M. Kennedy Service America Act, a new law that expands national-service programs, will be included in the president’s budget request for fiscal 2010. Mr. Obama is expected to unveil his full spending plan on Thursday, including details of how much he hopes to spend on a range of federal programs.
Ms. Barnes said the money, which will be managed by the Corporation for National and Community Service, would provide “growth capital to support the replication of high-impact, results-oriented nonprofits in communities around the country. It will build a pipeline of programs that have demonstrated results and are ready to spread across the country to solve our most serious problems.”
“The Social Innovation Fund reflects the president’s new governing philosophy: finding and investing in what works; and partnering with and supporting others who are leading change in their communities,” Ms. Barnes said. “We are also working with federal agencies across the government to identify new solutions to problems that have resisted traditional approaches.”
She asked foundations to give her advice about how the fund should operate, what charities it should support, and how the White House can evaluate whether it makes any progress.
“We don’t intend to reinvent the wheel. We want to borrow from what you and others have learned and use it to advance this agenda,” she said.
She added that the president is specifically interested in using the fund to support several causes. They include job training in the Midwest, math and science education, and efforts to curb obesity among American children and promote healthy living.
First Lady Offers Support
Michelle Obama, the first lady, also mentioned the fund in remarks she made to a gala event in New York celebrating Time magazine’s “100 Most Influential People Awards.”
“The idea is simple,” she said. “Find the most effective programs out there and then provide the capital needed to replicate their success in communities around the country.”
She added: “By focusing on high-impact, results-oriented nonprofits, we will ensure that government dollars are spent in a way that is effective, accountable and worthy of the public trust.”
Ms. Obama recalled her work as founding head of the Chicago office of Public Allies, a group that trains young people for nonprofit and public-service jobs.
“There are few things more rewarding than watching young people recognize that they have to power to enrich not only their lives, but the lives of others as well,” she said.
She praised several entrepreneurial nonprofit efforts, including Donors Choose, which seeks online donations to help teachers purchase classroom supplies; Project Health, which recruits college students to help low-income people get housing, nutrition, and other basic services; and NOLA 180, which helps transform failing public schools in New Orleans into high-performing charter schools.
“This is exactly the kind of social innovation and entrepreneurship we should be encouraging all across this country,” she said.
Suzanne Perry contributed to this article.
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Please include juvenile justice in the discussion. 2.2 million Americans are incarcerated. The majority are between 18 & 35 years old. Prevention-oriented organizations such as www.jefy.org can make a significant impact by reducing the cost of incarcetation on states, minimizing the loss of a parent in the family structure and adding economic and human capital to communities.
— Mary EB Smith May 5, 08:18 PM #
Great article – thanks. The typos/spelling errors reflect poorly though… I hope the innovative players like Social Venture Partners (svpi.org) will not get out played by the nonprofit status quo for these funds. What we need is new investment in socially innovative ventures – not new wine into old wine skins.
— David Woods May 6, 12:07 PM #
Excellent idea—- The newly formed Childrens Music Foundation (www.cmfinc.org) will be an excellent case study in proving that seed capital for a properly modeled program that can be self sustaining is a good public investment.
— Rourke OBrien May 6, 02:41 PM #
Delighted to hear this. I sincerely hope this extends to influence US-based non-profits and charitable organizations who are putting US dollars to work internationally in innovative ways.
— Zenia Tata May 6, 02:46 PM #
This resource will support our mission to eradicate generational poverty in the Twin Cities (www.twincitiesrise.org)
— David Peeples May 6, 05:59 PM #
Great idea, but simple?…and what exactly what does high impact mean, for who and what. Programs that are rooted in communities, have community accountability and community support can do much more to directly and indirectly effect a person, a family, a entity, a neighborhood, programs like Parent-Child Home Program whose focus is early literacy, but engages community people to help their neighbors, provide positive parent role models and family support, RethinK New Orleans, empowers young people with various leadership skills and builds community with in the school and outside the school and among the schools. And ditto comment #1.
— lynda parmely May 7, 07:52 PM #
I was thrilled to see Michelle Obama mention NOLA 180. Social innovation is social survival in New Orleans. It’s not an option, entrepreneurialism will help grow that city and it’s crucial we place the funds necessary in the hands of people making a difference in one of the greatest cities in America.
— Sloane Berrent May 8, 03:14 PM #
I agree with the post about true innovation that works with capital rather than the entrenched 5th estate. Consider the USDA Cooperatives model for federal support to housing starts; and/or converting privately held property to shareholding housing cooperatives to facilitate EQUITY ACCESS. Work with families to increase financial literacy and build the equity base of the working poor.
— Susan Davenport Moore May 28, 01:16 PM #