Ashoka's Venture Fund for Leading Social Entrepreneurs
Ashoka's Venture Fund for Leading Social Entrepreneurs
Ashoka's Venture Fund for Leading Social Entrepreneurs
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Ashoka’s <strong>Venture</strong> <strong>Fund</strong><br />
<strong>for</strong> <strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong><br />
Prospectus 2008
“The world is full of people with innovative ideas who are willing to give their all to implementing<br />
them but don’t have money to get started. These “social entrepreneurs” can change the lives of millions<br />
of people <strong>for</strong> the better if only they are helped to follow through on their ideas. The movement<br />
to identify and fund social entrepreneurs in a systematic way, indeed the very term “social entrepreneurship”,<br />
was the braindchild of one man: Bill Drayton [founder of Ashoka]”.<br />
President Bill Clinton<br />
Giving: How each of us can change the world<br />
An invitation to change the world with Ashoka...
Executive Summary<br />
Ashoka is the global leader in identifying and supporting individuals who are turning the most<br />
innovative ideas <strong>for</strong> social change into reality. These social entrepreneurs—called Ashoka<br />
Fellows—accomplish the extraordinary: saving 9 million hectares of Amazon rain<strong>for</strong>est; raising<br />
school enrollment in rural Bangladesh by 44%; creating a helpline <strong>for</strong> street children across Asia<br />
that has taken 5.5 million calls.<br />
Ashoka’s <strong>Venture</strong> <strong>Fund</strong> <strong>for</strong> <strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong> is an exceptional way to invest in the<br />
people with the ideas and tools to bring about sustainable change throughout the world. The<br />
<strong>Venture</strong> <strong>Fund</strong> provides revenue <strong>for</strong> the three-year living stipends provided to Ashoka Fellows,<br />
enabling them to focus full time on implementing their ideas and scaling their programs. By<br />
financing Fellow stipends, the <strong>Venture</strong> <strong>Fund</strong> also makes it possible <strong>for</strong> these entrepreneurs<br />
to access Ashoka’s global network of peers and strategic partners —resources many Fellows<br />
consider far more important than money. This combination of financial and professional support<br />
leverages each Fellow stipend and maximizes your direct investment.<br />
Yet most importantly, the <strong>Venture</strong> <strong>Fund</strong> operates without regard to the region or field in which<br />
a remarkable idea is unleashed. The funds are directed where they are most needed, ensuring<br />
that a new idea <strong>for</strong> an old—or lesser known—problem will have the support to achieve lasting<br />
impact.<br />
In its inaugural year, the <strong>Venture</strong> <strong>Fund</strong> generated just over $500,000 which enabled the election<br />
of 10 of the 163 Fellows identified last year. In 2008, we aim to increase Fellow elections to well<br />
over 200, and have set a target of $1M <strong>for</strong> the <strong>Venture</strong> <strong>Fund</strong> to support a greater percentage of<br />
our elections.<br />
Ashoka seeks partners in the <strong>Venture</strong> <strong>Fund</strong> from a minimum of $5,000. We invite you to learn<br />
more about the <strong>Venture</strong> <strong>Fund</strong> <strong>for</strong> <strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong> on the following pages, and join<br />
us in enabling lasting solutions <strong>for</strong> social change.
Ashoka’s Approach<br />
<strong>Social</strong> Group<br />
<strong>Entrepreneurs</strong> <strong>Entrepreneurs</strong>hip<br />
Architecture<br />
<strong>for</strong> the<br />
Citizen Sector<br />
<strong>Social</strong> <strong>Entrepreneurs</strong><br />
<strong>Venture</strong> is the program through which Ashoka supports<br />
social entrepreneurs — role models <strong>for</strong> the citizen sector and<br />
engines <strong>for</strong> social change. After a rigorous selection process<br />
and evaluation against our five core criteria, Ashoka provides<br />
Fellows a three-year living stipend and ongoing professional<br />
support. Ashoka continues to build and integrate an array of<br />
services and opportunities <strong>for</strong> Fellows which are designed to<br />
meet their needs at each different stage of their careers.<br />
Group <strong>Entrepreneurs</strong>hip<br />
Ashoka develops frameworks <strong>for</strong> entrepreneurs to access<br />
each other’s ideas and experiences, collectively changing<br />
entire fields. Ashoka’s mosaic initiatives capture the principles<br />
and strategies of Ashoka Fellows around the world, helping to<br />
spread best practices and instigate widespread change.<br />
Architecture <strong>for</strong> the Sector<br />
Ashoka is helping to establish the systems and supports in the<br />
citizen sector that changemakers need in order to succeed.<br />
These diverse programs include: access to financing, diversified<br />
and localized resources, and bridges to other sectors of society.<br />
In particular, Business <strong>Social</strong> Bridges, evident in many of<br />
Ashoka’s programs, work to create high impact investment<br />
and learning opportunities between the business and citizen<br />
sectors.<br />
Ashoka’s mission is to shape a citizen sector that is entrepreneurial,<br />
productive and globally integrated. To achieve our mission, Ashoka has<br />
developed a three-part approach that builds from our core strategy of<br />
supporting social entrepreneurs.<br />
For Example:<br />
• Global Fellowship builds plat<strong>for</strong>ms <strong>for</strong> peer learning and<br />
funded collaboration opportunities within the network.<br />
• Strategic Partnerships provide pro bono training and<br />
consulting from McKinsey & Co., Hill & Knowlton, and<br />
others.<br />
• Fellow Security offers prevention strategies and emergency<br />
support to Fellows under threat.<br />
• Changemakers.net is a global online community, which<br />
seeks and improves solutions and sparks collaborations to<br />
create systemic change.<br />
• The Law <strong>for</strong> All Initiative enables all individuals to live as full<br />
citizens by supporting human rights defenders, facilitating<br />
pro bono legal assistance, and opening access to justice.<br />
• Full Economic Citizenship is demonstrating in four industries<br />
the huge productivity and profit gains possible through new<br />
production and distribution chains that match businesses<br />
with partners from the entrepreneurial citizen sector.<br />
• The Citizen Base Initiative catalyzes citizen sector<br />
organizations to build broad grassroots support <strong>for</strong> their work:<br />
money, people, and in<strong>for</strong>mation from diverse sources.
Introduction to the<br />
<strong>Venture</strong> <strong>Fund</strong><br />
What is the <strong>Venture</strong> <strong>Fund</strong>? The <strong>Venture</strong> <strong>Fund</strong> <strong>for</strong> <strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong> provides equity<br />
<strong>for</strong> the three-year living stipends Ashoka invests in its Fellows. Along with a lifetime of professional<br />
support, including access to a network of 2,000 of their peers, Ashoka’s financial investment is<br />
critical to the launch and spread of Fellows’ ideas and programs. Ashoka acts on a firm belief in<br />
the power of a new idea in the hands of a well supported social entrepreneur. By providing these<br />
resources, the <strong>Venture</strong> <strong>Fund</strong> will enable Ashoka Fellows to better address society’s most difficult<br />
challenges, from access to water to youth violence.<br />
What is the need <strong>for</strong> the <strong>Venture</strong> <strong>Fund</strong>? Nearly three decades after Ashoka supported its first Fellow<br />
in India, the number and quality of social entrepreneurs around the world is increasing rapidly. The<br />
citizen sector is maturing, the field of social entrepreneurship has flourished, and Ashoka wants<br />
to keep pace with this growth by bringing more social entrepreneurs into our global Fellowship.<br />
This presents a new and exciting opportunity <strong>for</strong> Ashoka’s investor partners, as our ability to raise<br />
adequate unrestricted funds <strong>for</strong> stipends cannot always accommodate all of the Fellows we source<br />
who meet our criteria. The <strong>Venture</strong> <strong>Fund</strong> <strong>for</strong> <strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong> fills this urgent need <strong>for</strong><br />
flexible, global funding. As <strong>for</strong>ward thinking investors, you understand that in today’s interconnected<br />
world, a great idea can begin anywhere and spread everywhere — with the help of the right network.<br />
Ashoka and its community can make that change happen <strong>for</strong> social entrepreneurs no matter where<br />
their work begins, or what the “hot issue” or region of the moment may be.<br />
Who does the <strong>Venture</strong> <strong>Fund</strong> support? In 2008 Ashoka will further its track record of identifying<br />
the most promising ideas and leaders in social change with the support of the <strong>Venture</strong> <strong>Fund</strong>. In<br />
2007 the <strong>Venture</strong> <strong>Fund</strong> supported ten diverse, promising entrepreneurs. Among them is Bolivian<br />
Casimira Rodriguez, who after 18 years as a mistreated domestic worker is shifting societal opinion<br />
and behavior towards this marginalized group, breaking a pattern of exploitation, trafficking, and<br />
violence. Rodrigo Villar of Mexico is building capacity and consumer demand <strong>for</strong> sustainable, “green”<br />
businesses, bringing his now 28 start-ups over $24M in investments. Hailing from Turkey, Thailand,<br />
Brazil, Mexico, Sri Lanka, Bolivia and Nepal, these and eight other individuals are beginning a new<br />
chapter in their path as changemakers because of Ashoka’s investment.<br />
What difference does Ashoka’s venture investment make? Over 26 years Ashoka has proven<br />
that our investment at the critical launch stage propels leading social entrepreneurs to new,<br />
unprecedented levels of impact and achievement. 80% of Fellows report that Ashoka’s investment<br />
made a significant or critical difference in their work. Fellows are recognized leaders in their fields,<br />
building institutions and growing ideas that challenge the status quo and bring about important<br />
“This would’ve just been a cool hobby if Ashoka hadn’t come along”<br />
-Ashoka Fellow Steve Bigari (USA)
societal changes. For example, Ashoka Fellow Arvind Kerjiwal, after institutionalizing the Right to<br />
In<strong>for</strong>mation Act in India, worked with Ashoka staff & Fellows in Nepal to ensure that the right to<br />
in<strong>for</strong>mation was incorporated into that country’s new constitution and built a citizen-led movement<br />
<strong>for</strong> the right to in<strong>for</strong>mation in Nepal.<br />
How will the <strong>Venture</strong> <strong>Fund</strong> make a difference <strong>for</strong> Ashoka? While the <strong>Venture</strong> <strong>Fund</strong> is an<br />
ongoing source of support <strong>for</strong> the <strong>Venture</strong> program, it is not an endowment—it serves a current<br />
and continually evolving need <strong>for</strong> investment in Fellow stipends. As such, a new <strong>Venture</strong> <strong>Fund</strong> <strong>for</strong><br />
<strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong> will be raised and disbursed annually. Each year’s goal will reflect<br />
anticipated elections of Ashoka Fellows and projected gaps in resources. Our Fellow election target<br />
in 2008 is 235: a roughly 40% increase from 2007. The 2008 <strong>Venture</strong> <strong>Fund</strong> has a goal of $1 million,<br />
allowing us to meet or hopefully surpass this target. Led by investments at the $100,000 level, $1<br />
million would enable approximately fifteen Fellow elections, as stipend levels vary by country and<br />
by individual. Increasing the number of Fellows in our community raises the caliber of our network,<br />
thereby increasing its value to all Fellows.<br />
How did the <strong>Venture</strong> <strong>Fund</strong> start? The <strong>Venture</strong> <strong>Fund</strong> was launched in May 2006 with an initial gift of<br />
$100,000 from the Oswald Family Foundation in honor of Charles W. Oswald, <strong>for</strong>mer CEO of National<br />
Computer Systems of Minneapolis and current chairman of Rotherwood Investments. An advisor<br />
and supporting partner to countless entrepreneurs over his career, Charley understands the critical<br />
role that investing in people plays in bringing <strong>for</strong>th new ideas and integrating change. Reflecting<br />
Charley’s powerful combination of heart, brilliance, and gratitude <strong>for</strong> all his opportunities to succeed<br />
in the American business world, the Oswald family is passing on the gift of financial support and<br />
opportunity to the world’s leading social entrepreneurs with Ashoka. The Oswalds have supported<br />
Ashoka, and Fellow stipends, <strong>for</strong> a number of years; this gift represents an increase in geographic<br />
scope and commitment from the family.<br />
Of the <strong>Venture</strong> <strong>Fund</strong> investment, Charley writes, “Through Ashoka’s <strong>Venture</strong> <strong>Fund</strong> my family and I<br />
share in supporting the most creative people in every field and on every continent. The opportunity<br />
to connect our resources with such trans<strong>for</strong>mative global change is invaluable <strong>for</strong> everyone involved.<br />
Clearly, it’s one of the most satisfying and effective investments we’ve made.”<br />
We invite investor partners to join us now to build a better world by discovering the most promising<br />
social change ideas and the entreprneurs behind them.
2007 Fellows<br />
Supported by the <strong>Venture</strong> <strong>Fund</strong><br />
Rodrigo Brito, Entrepreneur Alliance, BRAZIL<br />
Rodrigo created the Entrepreneur Alliance to develop, together with small businesses, infrastructure<br />
and quality services to raise income and profit in low-income communities that are normally excluded<br />
from the mainstream market. The Alliance also <strong>for</strong>med a multi-stakeholder support network to assure<br />
sustainability <strong>for</strong> small business entrepreneurs in low-income communities.<br />
Arzum Meleksoy, Alibagis, TURKEY<br />
Arzum has designed an entirely new mechanism <strong>for</strong> building interest, awareness, and citizen support<br />
<strong>for</strong> Turkey’s under-resourced citizen sector. Her Internet plat<strong>for</strong>m links users with Turkish citizen orga-<br />
nizations in a way that directs corporate money to projects of an individual’s choosing. With it, Arzum<br />
is establishing a culture of support <strong>for</strong> the citizen sector with ripple effects beyond the web.<br />
Rodrigo Villar, Center <strong>for</strong> Sustainable Business, MEXICO<br />
Rodrigo founded the Center <strong>for</strong> Sustainable Businesses in Mexico to promote sustainable business<br />
as a critical part of the solution to Mexico’s pollution challenges. Within three years, he started 28<br />
sustainable businesses and brought them US$24 million in investment. To create and support con-<br />
sumer demand Rodrigo is also launching Green Pages, a business directory <strong>for</strong> “green” businesses.<br />
Casimira Rodriguez, the Domestic Workers’ Union, BOLIVIA<br />
After 18 years of being mistreated as a domestic worker herself, Casimira realized that she could spur<br />
change only by reversing widespread societal apathy about the widespread abuse and exploitation of<br />
domestic workers. Casimira changes perceptions by working with employers, raising public awareness, and<br />
educating indigenous rural families who send their daughters to the cities in hopes of a better life <strong>for</strong><br />
them. The Union’s support groups serve as surrogate families <strong>for</strong> workers far from home.<br />
Nalinika Obeyesekere, Blue Paw Trust, SRI LANKA<br />
Nalinika is trans<strong>for</strong>ming the animal care system in Sri Lanka. To build the veterinary profession, she intro-<br />
duced education programs and incentives <strong>for</strong> the return of veterinarians who have left the country, includ-<br />
ing the first multi-doctor veterinary practice in Sri Lanka. The veterinary practice subsidizes free treatment<br />
<strong>for</strong> street animals and sponsors programs in schools and neighborhoods on animal safety awareness.
Megh Ale, Nepal River Conservation Trust, NEPAL<br />
By igniting passion <strong>for</strong> the river and creating new economic incentives, Megh is building a broad base of<br />
support <strong>for</strong> the long-term health of waterways in Nepal. Through tourism opportunities, river guides become<br />
enthusiastic advocates <strong>for</strong> conservation. Megh also engages local residents through river festivals<br />
and in-school educational projects.<br />
Nejat Unlu, Positive Life Support Center, TURKEY<br />
Nejat has organized the first citizen organization in Turkey to empower those with the HIV virus to sup-<br />
port one another, raise awareness, press <strong>for</strong> ending discrimination, and lobby <strong>for</strong> re<strong>for</strong>ms in state health<br />
policy. Recently the Ministry of Health asked Nejat to incorporate some of his strategies in their AIDS<br />
policy plan.<br />
Angkhana Neelapaichit, Working Group on Justice <strong>for</strong> Peace, THAILAND<br />
Angkhana is using her own life experience to bring an end to <strong>for</strong>ced disappearances and arbitrary deten-<br />
tions. She combines a grassroots approach to individual cases with a systematic re<strong>for</strong>ms at the legislative<br />
and judicial levels, adding appropriate use of media to gain public support. Angkhana makes particular<br />
use of families and friends of victims to build systems of peace <strong>for</strong> all who are oppressed.<br />
Selma Demirelli, The Water Lily Project, TURKEY<br />
Selma is spearheading the first housing cooperative in Turkey run by women. Beyond providing shelter<br />
and financial independence, housing cooperatives give women finance, business development, and urban<br />
planning skills <strong>for</strong> the future. Further, property ownership is a key step to advancing women’s rights and<br />
equal legal standing in Turkey.<br />
Teerawat Sripathomsawad, Independent Living, THAILAND<br />
Rejecting a medical model that keeps disabled Thais dependent on public assistance, Terrawat, himself a<br />
quadriplegic, introduced the practice of Independent Living, through which all disabled persons can learn<br />
to judge their own capacities and avoid institutionalization. From this empowered position, the disabled<br />
become a social, economic, and political <strong>for</strong>ce to demand their rights and take an active role in society.
<strong>Fund</strong> Structure and<br />
Operations<br />
The <strong>Venture</strong> <strong>Fund</strong> <strong>for</strong> <strong>Leading</strong> <strong>Social</strong> <strong>Entrepreneurs</strong> is structured to be of maximum use<br />
where funds are most needed. It means Ashoka will never have to limit our support of a<br />
leading social entrepreneur because of lack of unrestricted funding. The <strong>Venture</strong> <strong>Fund</strong> does<br />
not generate profit; investments in the <strong>Venture</strong> <strong>Fund</strong> are entirely tax deductible according to<br />
Ashoka’s registered 501(c)(3) status in the United States and similar registration in many<br />
other countries in which we operate.<br />
Since the spring of 2006, launching supporter The Oswald Family Foundation has seeded<br />
the <strong>Venture</strong> <strong>Fund</strong> with annual contributions of $100,000. Participation at the $100,000<br />
level continues to be the lead investment, with other investments ranging from $100,000 to<br />
the $5,000 minimum. The set minimum investment ensures a strong base of support <strong>for</strong><br />
Fellows in the diverse range of countries where Ashoka works. Gifts in smaller amounts are<br />
still accepted from individuals through www.ashoka.org only. Exclusive of these individual<br />
online donations, the average investment in the <strong>Venture</strong> <strong>Fund</strong> in 2007 was $41,000. Ashoka<br />
continues to pursue creative partnerships and sourcing opportunities <strong>for</strong> the <strong>Venture</strong><br />
<strong>Fund</strong>.<br />
For 2008, Ashoka set a goal of $1 million, which would cover approximately 15 Fellows<br />
depending on the areas of most need. If the target is reached, Ashoka may continue to<br />
solicit investments <strong>for</strong> the fund beyond this goal. However, all fund proceeds are targeted at<br />
<strong>Venture</strong> stipends and associated program expenses.<br />
Ashoka Fellow Luis Alberto Camargo<br />
(Colombia) recognizes that<br />
young people—the next generation<br />
of consumers and decision-makers—won’t<br />
take care of the environment<br />
without a personal connection<br />
to nature. Through OpEPA<br />
(Organization <strong>for</strong> the Environmental<br />
Education and Protection), Luis is<br />
making a lasting connection to nature<br />
accessible to all of Colombia’s<br />
urban youth.
Management of the <strong>Fund</strong><br />
Ashoka will steward the fund according to the timeline at<br />
right. At the end of the fiscal year, gaps between elections and<br />
available funds will be identified. The <strong>Venture</strong> <strong>Fund</strong> relies on<br />
the input of senior staff and Ashoka’s Leadership Team which<br />
will be consulted be<strong>for</strong>e funds are dispersed to finalize Fellow<br />
elections. Ashoka will convene the necessary parties in August<br />
2008 to determine the <strong>Fund</strong>’s activities, including but not limited<br />
to which Fellows and geographic regions the <strong>Fund</strong> will support.<br />
The timeline <strong>for</strong> the<br />
<strong>Venture</strong> <strong>Fund</strong> in 2008 is<br />
as follows:<br />
November 2007:<br />
Search and selection<br />
of Ashoka Fellows<br />
begins<br />
December 2007: Initial<br />
major solicitation of<br />
<strong>Fund</strong> Disbursement<br />
funds (ongoing)<br />
Ashoka invests in social entrepreneurs through a three year May 2008: Second<br />
living stipend which enables the launch and spread of the major solicitation of<br />
Fellow’s idea. Ashoka will use the <strong>Venture</strong> <strong>Fund</strong> to finance funds<br />
those stipends otherwise unsupported by other means. The July 2008: Solicitation<br />
global average stipend is $45,000 per year, however Fellow of funds ends<br />
stipends range considerably depending on the country and August 2008: Annual<br />
individual circumstances, according to local standards and<br />
search and selection of<br />
individual need. If the <strong>Fund</strong> is fully subscribed at $1 million,<br />
Ashoka Fellows ends,<br />
it would support approximately 15 Fellow stipends. Ashoka<br />
gaps are identified,<br />
books the entire three year stipend in year one, to ensure we<br />
and the fund is<br />
never default on our committment to the Fellow. For example, a<br />
Fellow with a $50,000 annual stipend costs Ashoka $150,000<br />
disbursed.<br />
in year one plus the cost of our search and selectiton process<br />
(estimated at 18% of the stipend amount). Because the geographic distribution of the<br />
fund is not determined in advance, the final number of Fellows cannot be fixed. The <strong>Fund</strong><br />
may also cover costs related to the election of a Fellow. All <strong>Venture</strong> <strong>Fund</strong> money raised in<br />
2008 will be disbursed in FY2008.<br />
<strong>Fund</strong> Reporting<br />
With the <strong>Venture</strong> <strong>Fund</strong>’s disbursement at the end of each fiscal year, Ashoka will disseminate<br />
a report to all <strong>Venture</strong> <strong>Fund</strong> investors. It will include a synopsis of the work of Ashoka’s<br />
<strong>Venture</strong> Program in each of our six major regions (North America, Latin America, Africa,<br />
Middle East/North Africa, Europe, and Asia), a geographic distribution of how the <strong>Venture</strong><br />
<strong>Fund</strong>’s resources were spent, and summaries of the work of a selection of Fellows supported<br />
by the <strong>Venture</strong> <strong>Fund</strong>. Updates on Ashoka’s financials and the development of the global<br />
institution will also be included.
Ashoka’s Selection<br />
Process<br />
NoMiNATioN<br />
Ashoka’s representatives rely on a robust nominator<br />
network in all sectors to source quality candidates.<br />
FirST opiNioN<br />
This stage entails site visits, reference checks, interviews<br />
conducted by Ashoka’s local representative.<br />
SECoND opiNioN<br />
A senior Ashoka staff person from outside the region conducts in-depth three<br />
to eight hour interviews with each candidate covering both the candidate’s life<br />
history and carefully probing the new idea.<br />
pANEL<br />
Each candidate spends one hour with each of 3 to 6 panelists, all of whom<br />
are leading local social entrepreneurs in the country. The panel is chaired by<br />
a global board member or senior manager, and the panelists discuss their<br />
impressions. Panel decisions are by consensus--there is no voting.<br />
BoArD rEViEW<br />
Ashoka’s international board, meeting monthly, reviews<br />
each candidacy carefully and is the final sign off.
Ashoka Fellow Criteria<br />
A New idea:<br />
Is the person possessed by a truly new idea <strong>for</strong> solving a public need? Is it a truly trans<strong>for</strong>mational innovation,<br />
or just a tweaking of how things are now done?<br />
Ashoka only elects individuals who possess a new idea, a new solution to a social problem that will change the<br />
pattern in a field at the regional or national level. A new school or clinic does not meet Ashoka’s definition of a<br />
new idea; there must be a vision of a new pattern <strong>for</strong> education or health care that promises to change schools<br />
or clinics all across the candidate’s country or region.<br />
Creativity:<br />
Is this person creative both in vision and in problem solving?<br />
Successful social entrepreneurs must be creative not only in goal-setting but also in solving the problems that<br />
inevitably arise while pursuing their vision. They must use their creativity day after day in order to succeed. To<br />
evaluate whether or not someone possesses this essential creativity, Ashoka examines his or her track record<br />
of developing creative solutions from youth onward.<br />
Entrepreneurial Quality:<br />
Is it impossible <strong>for</strong> this person to rest until his or her vision is the new pattern across society, even if it involves<br />
years of grappling with “how-to” issues?<br />
Ashoka looks <strong>for</strong> people who are married to their idea and will keep developing it if need be <strong>for</strong> decades.<br />
<strong>Social</strong> entrepreneurs are practical and pragmatic. They know how to overcome obstacles, and are driven both<br />
by their idea and by the will to make that idea an institutionalized reality.<br />
<strong>Social</strong> impact of the New idea:<br />
Is the idea new, practical, and useful enough that others will adopt it once it has been demonstrated? If so,<br />
how many people will be affected by this idea, to what degree, and how beneficially?<br />
Ashoka is interested in ideas that will, over the long term, change the candidate’s field significantly and that<br />
will trigger widespread impact. <strong>Social</strong> entrepreneurship not only needs an extraordinary person to develop an<br />
idea but also a powerful, practical idea that will spread on its own merits.<br />
Ethical Fiber:<br />
If you were in danger, would you instinctively trust this person? Would you trust him or her in a position of<br />
power?<br />
There are three reasons why this criterion is critical to Ashoka. First, significant social entrepreneurs ask<br />
people to make major changes in behavior, which is highly unlikely without trust. Second, Ashoka’s greatest<br />
power, our community, does not work if even one person in the room is untrustworthy. Finally, we do not want<br />
to add to the supply of untrustworthy public leaders.
Risks<br />
The risks associated with the <strong>Venture</strong> <strong>Fund</strong> are two-fold: the general risk associated with<br />
Ashoka’s investment in individuals and the per<strong>for</strong>mance of the <strong>Venture</strong> program in any given<br />
year. For the <strong>for</strong>mer, the Ashoka selection process is designed to source and screen new<br />
system changing ideas to create lasting social impact. It addresses significant uncertainties<br />
in terms of program efficacy, due diligence, long-term viability, and long-term replicability,<br />
resulting in Ashoka Fellows who represent the apex of the field of social entrepreneurship and<br />
innovation in the social sector.<br />
Ashoka has over 25 years experience mitigating risk <strong>for</strong> our partners and investors. Ashoka’s<br />
methods of finding and supporting the world’s leading social entrepreneurs are tried and tested<br />
around the world under varying circumstances. From the first year, we have rigorously, and<br />
successfully, fought against all <strong>for</strong>ms of discrimination and violence and maintained staunch<br />
political independence. However, we fully recognize the nature of the world in which we work.<br />
To this end, Ashoka is addressing the counterterrorism compliance and risk management<br />
challenges of being a global organization.<br />
With the assistance of strategic partner, Latham & Watkins LLP, Ashoka <strong>for</strong>mulated a<br />
comprehensive counterterrorism compliance program <strong>for</strong> Ashoka. Upon counsel’s advice,<br />
Ashoka has adopted a series of policies that will help ensure that Ashoka’s global activities are<br />
in compliance with US, EU, UN, and other regulations. Ashoka has contracted with ChoicePoint<br />
Bridger Insight, a leading global compliance and risk management solutions company. Ashoka<br />
is building its compliance department to screen all monetary transactions as well as staff,<br />
associates, consultants, Fellows and candidates.<br />
Ashoka’s counterterrorism compliance program includes:<br />
• A screen <strong>for</strong> donors, investment recipients, and beneficiary organizations against terrorism<br />
watch lists. We continue to follow all relevant reporting guidelines <strong>for</strong> cash and other<br />
monetary transactions.<br />
• No engagement in new countries without full assessment of relevant legal guidelines. We<br />
consult with local and international counsel if necessary to be clear on our liability and risk<br />
in entering new countries.<br />
• Continuing to certify that resources are only given to individuals or organizations that will<br />
further our stated mission and goals.
Ashoka continues to build on our commitment to the highest quality due diligence possible,<br />
even as we seek to grow the number of Fellows we elect each year.<br />
Regarding the per<strong>for</strong>mance of the <strong>Venture</strong> program, while it is highly unlikely that Fellow<br />
elections will fall below the target of 170, it is possible that a sufficient number of leading social<br />
entrepreneurs meeting Ashoka’s criteria will not be elected during FY2007 to meet the target.<br />
If the <strong>Venture</strong> funding gap is less than anticipated, the <strong>Fund</strong>’s resources will nevertheless be<br />
directed at the financial support of Ashoka Fellows and associated program expenses. If the<br />
<strong>Venture</strong> <strong>Fund</strong> does not reach its target of $1 million, all resources will still be used to support<br />
otherwise unfunded <strong>Venture</strong> activities. A poor fundraising environment cannot be predicted,<br />
whether due to broader economic conditions or those specific to social entrepreneurship or<br />
this <strong>Fund</strong>.<br />
Ashoka currently operates in 60 countries worldwide. Expansions are underway and<br />
planned in 2007 to the Philippines, China, Morocco, and the <strong>for</strong>mer Soviet Republics.<br />
Resources from the <strong>Venture</strong> <strong>Fund</strong> could be essential in the start-up phases of these new<br />
country programs. Conversely, operations in existing country programs may be suspended<br />
due to a change in government, macroeconomic collapse, or other circumstances. The<br />
possible geographic impact of the <strong>Venture</strong> <strong>Fund</strong> cannot there<strong>for</strong>e be specified in advance.<br />
In case of expansion or closure, <strong>Venture</strong> <strong>Fund</strong> resources will continue to be allocated to the<br />
countries of most need. Details of the geographic disbursement will be made available in<br />
the <strong>Venture</strong> <strong>Fund</strong> End of Year Report.<br />
Ashoka Fellow Kathryn<br />
Hall (USA) reaches young<br />
at-risk mothers through<br />
mentorship and coaching<br />
which ensures that pre-natal<br />
care goals are acheived<br />
and babies are born<br />
healthy to prepared and<br />
supported mothers. Here<br />
she visits with a young<br />
mother in Honduras.
Key Staff<br />
Biographies<br />
Diana Wells Diana is Co-President of Ashoka. Diana joined Ashoka in the 1980s after<br />
graduating from Brown University with a B.A. in South Asian Studies. She led the creation<br />
of Fellowship Support Services, the prototype <strong>for</strong> today’s Global Fellowship program,<br />
which links Ashoka social entrepreneurs to one another and to a wide array of in<strong>for</strong>mation<br />
and supports. She also conceived and developed Ashoka’s widely respected Measuring<br />
Effectiveness program <strong>for</strong> impact evaluation. After a leave to pursue a Ph.D. in anthropology,<br />
she returned, serving as Vice-President of Global <strong>Venture</strong>, and currently as President.<br />
Among other responsibilities, Diana manages the global Fellow selection process as well as<br />
Ashoka’s expansion to new countries.<br />
Jessica Lee Jessica is the project manager <strong>for</strong> the <strong>Venture</strong> <strong>Fund</strong>. Jessica works with Global<br />
<strong>Venture</strong> on <strong>Venture</strong> Operations, integration of Ashoka’s Africa programs, and works closely<br />
with Global Development. Jessica graduated from Georgetown University with a B.A. in<br />
Anthropology and French. At Georgetown she led Georgetown Students <strong>for</strong> Fair Trade and<br />
participated actively in the social justice and choral singing communities.<br />
Christopher Dumm Chris is currently a Senior Change Manager in <strong>Venture</strong>, and tracks<br />
Fellow elections closely in each country. Chris grew up in Asia, graduating from high school<br />
at the American School in New Delhi. He graduated from the University of Virginia in 1998,<br />
and spent five and a half years on Capitol Hill. Most recently, he was the Executive Director<br />
of the Indian American Center <strong>for</strong> Political Awareness, a nonprofit organization that seeks to<br />
educate Indian Americans about the U.S. political process.<br />
The women who join Coopa-Roca, the design and<br />
sewing cooperative created by Ashoka Fellow Maria<br />
Theresa Leal, gain self-confidence and steady income<br />
with flexible working hours, as well as a frontrow<br />
seat at Brazil’s top fashion shows where their<br />
work has been exhibited.
Ashoka Financials<br />
Ashoka is entering a period of significant growth as we expand our work with<br />
social entrepreneurs, building a world where every individual can think & act<br />
as a changemaker. This upward trend is supported by a diverse donor base of<br />
business entrepreneurs, their foundations, corporations, family foundations,<br />
and individual supporters.<br />
For FY2006:<br />
• Total Expenses: $26.1 million USD<br />
• Total Revenue: $26.3 million USD<br />
For FY2007:<br />
• Estimated Total Expenses: $30.4 million USD<br />
• Estimated Total Revenue: $35.6 million USD<br />
Ashoka’s fiscal year closed August 31, 2007. Audited financials <strong>for</strong> FY2007<br />
are currently being finalized.<br />
Ashoka uses the accrual method of accounting. We are audited annually by<br />
Cleveland & Gotliffe, a Virginia CPA firm. The annual budget is approved by the<br />
leadership team, and then by the Board of Directors.<br />
Ashoka is registered as a 501(c)(3) charitable organization in the US. Our tax<br />
ID number is 51-0255908.<br />
Ashoka’s most recent audit and 990 are available upon request.
Ashoka’s Global<br />
Reach<br />
Asia Fellows<br />
Afghanistan 1<br />
Bangladesh 61<br />
Hong Kong 1<br />
India* 283<br />
Indonesia* 126<br />
Nepal* 39<br />
Pakistan* 42<br />
Sri Lanka* 11<br />
Thailand* 77<br />
North America<br />
Canada* 12<br />
Costa Rica 8<br />
El Salvador 6<br />
Guatemala 2<br />
Mexico* 131<br />
Nicaragua 3<br />
United States* 84<br />
• Caribbean<br />
• China<br />
Countries where Ashoka has elected Fellows:<br />
Africa Fellows<br />
Botswana 1<br />
Burkina Faso 12<br />
Cameroon 4<br />
Cote d'Ivoire* 4<br />
Gambia 4<br />
Ghana 4<br />
Guinea-Bissau 1<br />
Kenya* 11<br />
Mali 11<br />
Mozambique 2<br />
Nigeria* 64<br />
Senegal* 16<br />
South Africa* 82<br />
Tanzania 4<br />
Uganda 16<br />
Zambia 1<br />
Zimbabwe 14<br />
South America Fellows<br />
Argentina* 40<br />
Bolivia 26<br />
Brazil* 284<br />
Chile 34<br />
Colombia* 46<br />
Ecuador 28<br />
Paraguay 14<br />
Peru* 36<br />
Uruguay 17<br />
Venezuela 15<br />
Middle East<br />
Egypt* 33<br />
Lebanon 2<br />
Morocco 1<br />
Palestine 3<br />
Saudi Arabia 1<br />
Europe Fellows<br />
Belgium 1<br />
Czech Republic 21<br />
France* 10<br />
Germany* 13<br />
Hungary 27<br />
Iceland 1<br />
Ireland* 2<br />
Latvia 1<br />
Lithuania 9<br />
Poland* 60<br />
Slovakia* 16<br />
Spain* 5<br />
Switzerland 2<br />
Turkey* 20<br />
Countries/regions where Ashoka is raising start up money to launch programs:<br />
• Ethiopia<br />
• Israel<br />
• Japan<br />
• Netherlands<br />
• Philippines<br />
• Russia<br />
* denotes Ashoka country office<br />
• United Kingdom<br />
• Vietnam
What People are<br />
Saying About Ashoka<br />
We believe one measurement of an effective<br />
community is exhibiting durable communication<br />
channels, networks, and collaborative alliances.<br />
Ashoka provides us with a great model <strong>for</strong> best<br />
practices – The engaged global community of<br />
social entrepreneurs that Ashoka has fostered<br />
helps each one of them to have more impact<br />
than would have been possible individually.<br />
- Iqbal Paroo,<br />
CEO, Omidyar Network<br />
Our collaboration with Ashoka: Innovators <strong>for</strong> the<br />
Public in Latin America has convinced us of the<br />
unparalleled power of the Ashoka idea. Ashoka<br />
and the social entrepreneurs it supports have<br />
caused social change in the developing world,<br />
helping millions to lead better lives.<br />
- Stephan Schmidheiny,<br />
President, AVINA Foundation and<br />
Founder, GrupoNueva<br />
[Google] is a company that believes deeply in<br />
entrepreneurship. And this is a company that<br />
believes deeply in the power of in<strong>for</strong>mation. We<br />
don’t think there’s another organization that<br />
combines these two things in a more compelling<br />
way than Ashoka.<br />
- Sheryl Sandberg<br />
Vice President, Google<br />
It’s one of the most hopeful and helpful trends<br />
around. These folks aren’t famous, but they are<br />
showing that what it really takes to change the<br />
world isn’t so much wealth or power as creativity,<br />
determination, and passion.<br />
- Nicholas Kristof,<br />
New York Times<br />
Columnist<br />
Ashoka is well placed to create a partnership of<br />
the future between business and society. It’s a<br />
good idea <strong>for</strong> all of us to support Ashoka.<br />
- NR Narayana Murthy,<br />
Founder, Infosys<br />
Ashoka has quietly given Philanthropy a new<br />
dimension: it has shown how to invest successfully<br />
in pattern-breaking, powerful ideas and the<br />
people behind them and how to do so early when<br />
a little makes an enormous difference - when<br />
hope can overcome cynicism, when tenacity can<br />
prevail over inertia. It has given us all lessons in<br />
how to harness the most powerful energy in the<br />
world - human talent - to the task of adapting to<br />
the demands of the 21st century.<br />
- Peter Goldmark,<br />
Former CEO, International Herald<br />
Tribune and Former President,<br />
Rockefeller Foundation
“Ashoka is a great global organization, built on a brilliant idea.<br />
it picks up social innovators when they themselves don’t know<br />
what great changes they can bring. That’s the stage when<br />
budding innovators need the support most. Ashoka helps pool<br />
local innovations into global solutions.”<br />
-Muhammad Yunus<br />
Founder, Grameen Bank<br />
2006 Nobel peace prize Winner<br />
ASHoKA: innovators <strong>for</strong> the public<br />
1700 north moore street | suite 2000 | arlington, virginia 22209-1929 usa<br />
703.527.8300 (phone) | 703.527.8383 (fax) | www.ashoka.org