In an era where values-based investing is gaining traction, the Minnesota Jewish Community Foundation (MN JCF) took a bold step by partnering with JLens to offer the Jewish Advocacy Investment Pool (JAIP) to its charitable fund holders, an investment option that licenses JLens’ Jewish screening, research and advocacy strategy (“Jewish Advocacy Strategy”). This strategic move underscores MN JCF’s commitment to aligning its investments with core Jewish values while maximizing the impact of its philanthropic efforts.
MN JCF: A Catalyst for Charitable Giving
Founded in 1974 as the planned giving and endowment department of the Minneapolis Jewish Federation( MJF) and now a wholly-owned subsidiary of MJF, MN JCF has evolved into a leading philanthropic organization serving three key demographics. “We help individuals and families with their charitable giving,” explains Alene G. Sussman, MN JCF’s Executive Director.
“We hold and grow endowment funds for 17 different local Jewish nonprofits in the Twin Cities, and we assist professional advisors with their clients’ charitable giving,” she added. One of the methods used by the MN JCF is philanthropic matchmaking, as Alene describes it: “We match fund holders’ interests with community needs, so that they can give money to the needs that they wish to support in the community. We do this for non-profits all around the globe.”
With $186 million of assets, MN JCF facilitates charitable donations amounting to $10-12 million annually, supporting causes both Jewish and non-Jewish, locally and globally. The organization’s donor-advised funds (DAFs) have traditionally supported a diverse range of organizations, encompassing areas such as education, human services, arts and culture, and religious initiatives. “We have a very generous community, one that is outsized in its charitable giving relative to the size of the local Jewish population,” Sussman described. “Minnesota is the top philanthropic state in the U.S., so it’s not surprising that our Jewish community follows suit and is one of the most philanthropic Jewish communities in the country.”
A Pivotal Relationship with the Minneapolis Jewish Federation
While MN JCF recently became a separate legal entity, it maintains a strong association with MJF. “Two years ago, we spun out to become a wholly-owned subsidiary, but we still have a very close relationship with the Federation and always work together for the benefit of the community,” Sussman explained.
This close-knit partnership has played a major role in shaping MN JCF’s investment strategy, particularly in licensing JLens’ Jewish Advocacy Strategy with its creation of the JAIP. MJF was the first to commit some of its own endowment dollars to be invested in the JAIP.
The Catalyst: Aligning Investments with Jewish Values
Six years ago, MN JCF embarked on a journey to begin to align its investment portfolio with Jewish values. “It’s one thing to give money out to organizations, but it’s a whole other thing when you’re thinking about aligning a foundation’s investments with Jewish values,” Sussman declared.
After determining the first step was to create a Jewish values-aligned investment option for fund holders, and conducting an extensive evaluation process, MN JCF’s leadership unanimously decided to partner with JLens. “JLens had already done the work of creating an effective Jewish values investment strategy, and it was the most cost-efficient option,” Sussman noted. JLens modernized the concept of Jewish values-based investing by applying ancient wisdom to today’s investment process. JLens was inspired by Judaism’s framework of mitzvot (obligations) to evaluate companies and engage in long-term investor advocacy in areas which include; combating antisemitism and hate, supporting Israel and promoting tikkun olam. Starting with the 500 largest U.S. public companies, JLens screens out companies with core business activities that do not align with Jewish values and then champions Jewish shareholder interests by engaging with corporate leaders.
“Our fund holders have an opportunity to do three mitzvot (good deeds), by investing with us and applying the JLens strategy. Firstly, they are giving charity, then their fund administrative fee supports our Jewish organization (akin to another grant to a Jewish organization), and the third is supporting JLens advocacy on behalf of the Jewish community. So three good deeds all wrapped up in one,” Sussman quipped.
The Implementation Process: Seamless and Inclusive
Integrating JLens’ Jewish Advocacy Strategy into the JAIP was a seamless process according to Sussman. “We worked with one of JLens’ advisors licensing the Jewish Advocacy Strategy, and the implementation was extremely easy.”
Crucially, MN JCF ensures that every current and prospective charitable fund holder is made aware of the JAIP, along with its risk profile and a brief description, when opening a new fund. “Whether they choose to adopt the JAIP option is up to them, based on their risk appetite,” Sussman clarified.
A Strategic Fit: JLens’ Jewish Advocacy Strategy
Within MN JCF’s suite of investment options, the JAIP stands out due to its focus on large-cap U.S. public equities and advocating with those influential companies. “We have had people open a donor-advised fund specifically with MN JCF because of the JAIP option” Sussman says.
Besides JLens, MN JCF offers another Jewish values-aligned investment choice: Israel Bonds. However, JLens’ comprehensive advocacy approach sets it apart, resonating with donors seeking a more proactive commitment to Jewish principles. JLens’ Jewish Advocacy Strategy “is an excellent way to be completely consistent in your mission and they make this very easy,” Sussman said. “The advocacy piece is really a huge bonus of working with JLens because they make an incredible effort to advocate for the Jewish community in the investment world to ensure our Jewish values are recognized and upheld.”
The Appeal of JLens for MN JCF Donors
Sussman believes that JLens’ Jewish Advocacy Strategy holds particular appeal for MN JCF’s donors for several reasons. First, it offers a compelling opportunity for those seeking long-term growth, as the screening strategy is designed to yield returns similar to the S&P 500. Sussman believes that investors with a long-term investment horizon should consider investing a portion of their funds in equities. “If you’re only investing for the short term, equities are probably not the best choice for you because of the potential volatility equities can experience.”
Additionally, Sussman added that JLens’ advocacy efforts resonate deeply with donors who prioritize the “triple mitzvah”. These additional positive actions relate to simultaneously supporting Jewish organizations through administrative fees while also aligning one’s investments with Jewish values.
“By investing some of our assets through JLens’ screening strategy, we have more credibility in the world,” Sussman asserts. “We’re not just talking the talk; we’re walking the walk by putting our money where our mouth is, and that is in supporting causes that share and exemplify Jewish values, which are values that are shared by our fund holders.”
Complementing MN JCF’s Mission: Corporate Advocacy
JLens’ advocacy efforts in the corporate arena seamlessly complement MN JCF’s mission of promoting Jewish values. Through shareholder advocacy, JLens actively calls for companies to combat antisemitism & hate, support Israel, and tackle critical tikkun olam challenges.
Sussman added, “JLens will often go to shareholder meetings and educate the company on how their actions are misaligned with Jewish values, asking them to correct their path. This holds especially true if a company begins to adopt any BDS policies. In such a case, JLens will attempt to meet with company leadership and explain to them why this path is a negative one that will damage the world and the company.”
Advice for Other Jewish Community Foundations
Based on MN JCF’s positive experience, Sussman wholeheartedly recommends Jewish values-based investing to other Jewish Community Foundations. “JLens is an excellent way to be completely consistent with your mission,” she affirms. “For the cost of doing business with them, you get a huge amount of value, not only in the investment screening but also in the advocacy piece. JLens’ Jewish Advocacy Strategy ensures that the assets of the foundations and the funds are invested with companies who share the values of the fund holders.”
Looking Ahead: Embracing Ethical Investments
As the demand for values-based investing continues to grow, MN JCF’s partnership with JLens positions the organization at the forefront of Jewish philanthropic innovation. By aligning its investments with Jewish values, MN JCF not only honors its philanthropic mission but also sets an example for other organizations seeking to create a positive impact on society.
With JLens’ strategy as a cornerstone of its investment portfolio, MN JCF demonstrates that financial stewardship and ethical considerations can coexist, paving the way for a more sustainable and values-driven future for charitable giving.
To learn more about the MN JCF go to mnjcf.org.
Over 30 Jewish institutions, representing $10 billion in communal capital, have invested $260 million in products licensing JLens’ Jewish screening, research and advocacy strategy (“Jewish Advocacy Strategy”) since 2015. On behalf of the Jewish community, JLens conducts research and advocacy with the 300+ U.S. public corporations held in this screening strategy.
This information is for educational purposes only and should not be interpreted as investment advice or an investment offering. Investors should consult with an advisor to determine the suitability of any investment option or strategy. JLens is not a registered investment advisor, makes no representation as to the advisability of the strategy or investing in any investment fund or other vehicle. Composition of the strategy’s portfolio is subject to change. JLens disclaims responsibility or liability for any advice given to third parties or decisions to invest in any investment or other vehicle by you or third parties based on the information. Any investment in funds involves a risk of losing money. Past performance is not indicative of future results.
