In New York, the Ford Foundation wants to issue $ 1 billion in “social bonds”

To support the non-profit sector weakened by the coronavirus crisis, the philanthropic foundation wants to increase the share it distributes this year and next year. Wells Fargo and Morgan Stanley have been commissioned for the operation. Four other foundations are planning to go into the capital markets or dip into their funds.

Darren Walker chairs the Ford Foundation.

“Do you want to be reimbursed or donate?” “ All over the United States, associations, theaters and schools are asking if the funds already sent to book a show or go on a school trip can be kept to get through the crisis. To help non-profit organizations stay afloat, money also sometimes comes … from other “charities”: the Ford Foundation has just announced its desire to go to the financial markets to raise $ 1 billion, to then distribute to the non-profit sector.

Ford will be the first non-profit foundation in history to offer a social purpose bond [ « social bond » ] labeled on the American taxable corporate bond market ”, indicates the foundation. The net proceeds from the sale of the bonds, with a maturity of 30 and 50 years, should allow the foundation to pay the equivalent of 10% of its total assets in 2020 and 2021, she says, or double of the level required by law.