May 6, 2009

$50 Million Social Innovation Fund To Target Education, Health, Economy

By Mark Hrywna

First Lady Michelle Obama outlined education, health care and economic opportunity as three focus areas for the administration’s efforts to promote social innovation and entrepreneurship as a means to solve some of the nation’s problems.

Those themes will key the $50 million Social Innovation Fund approved as part of the $5.7-billion Edward M. Kennedy Serve America Act, signed by President Barack Obama last month. Details on accessing the money were not immediately available.

“The idea is simple: to find the most effective programs out there and then provide the capital needed to replicate their success in communities around the country that are facing similar challenges,” Obama said in prepared remarks Tuesday at the Time 100 Most Influential People Awards in New York City. “By focusing on high-impact, result-oriented nonprofits, we will ensure that government dollars are spent in a way that is effective, accountable and worthy of the public trust,” she said.

The Social Innovation Fund is intended to foster partnerships between foundations, philanthropists, and corporations that will commit matching resources, funding, and technical assistance.

“Careers focused on lifting up our communities…are not always obvious. But, at a time when our nation is facing unprecedented challenges, encouraging careers in public service and social innovation is more important than ever,” the First Lady said.

Obama cited existing examples of social innovators and entrepreneurs. “This is exactly the kind of social innovation and entrepreneurship we should be encouraging all across this country,” she said.

Charles Best, a former Bronx public school teacher founded Donors Choose, where people can directly fund basic classroom projects by public school teachers through the Internet. Rebecca Onie started Project Health, which organizes college students to staff help desks in urban medical centers, connecting low-income families to critical resources like housing vouchers and nutrition assistance. John Alford recently launched NOLA 180 with the aim of transforming New Orleans public schools into high-functioning charter schools that prepare every student for college.

Melody Barnes, assistant to the president and director of the Domestic Policy Council, also highlighted the fund Tuesday in a keynote speech to the Council on Foundations at its annual conference in Atlanta. “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,” Barnes said. “We are also working with federal agencies across the government to identify new solutions to problems that have resisted traditional approaches,” she said.

The White House Office of Social Innovation and Civic Participation will coordinate efforts to enlist individuals, nonprofits, social entrepreneurs, corporations and foundations as partners in solving challenges. Located within the Domestic Policy Council, it will: