Impact investors travel the world over in search of dealflow. And yet, too few explore the exciting partnership opportunities among our neighbors. Investing in Native American Communities, ripe for those looking for impact with a sustainability, social equity, or place-based lens, provide unique opportunities for long-term patient capital. The Rainmakers Investment Collaborative, a working group at Confluence Philanthropy, has spent the past decade in dialogue and partnership with Tribal Leaders in a commitment to raise and deploy $4 million across New Mexico and Arizona. As part of our ten-year anniversary activities, we hosted a Learning Journey in and around Santa Fe, New Mexico to encourage impact investors to collaborate with Tribal America. The one-and-a-half day convening brought together more than 40 investors, Native leaders, and non-profits in a cross-learning environment that included day long interactive discussions and a learning trip to Tesuque and Ohkay Owingeh pueblos.
The Context for Investing in Native Communities
The first day kicked off with a welcome by Eva Schulte, Vice President for Economic Opportunity at Travois, and Bill Smith, President & CEO of Santa Fe Community Foundation.
Alvin Warren, Program Officer at W.K. Kellogg Foundation, helped acknowledge the Tewa ancestors on whose land we were convening and lead a traditional invocation prayer blessing the event.
Grace Sato, Director of Global Project and Partnerships of Candid, presented on Philanthropy and Funding for Native Communities, a research study that highlighted the woefully low philanthropic capital flowing into Native communities (at 0.4% of total philanthropic funding, with average grant sizes of about $2,750). Further, Sato shared a key insight that the philanthropic capital that was flowing into program areas were not necessarily aligned with the most urgent needs of the communities. As an example, a majority of grant funding is allocated for arts and culture; but many communities urgently need support around violence prevention, healthcare, or housing.
Janene Yazzie, Sustainable Development Program Coordinator at International Indian Treaty Council, keynoted the event and echoed the need for more support to address deep-seated issues of drug abuse, healthcare, and economic disenfranchisement, among others. She also emphasized that the communities have powerful assets such as strong communal identity and traditional knowledge systems that can be leveraged while designing solutions.
The first panel discussion, titled Teach In: Investing in Native Communities, dug deeper into various aspects of investing in Indian country. Jim Enote, Director of Colorado Plateau Foundation, moderated a discussion including Alvin Warren, Program Officer at W.K. Kellogg Foundation, and Michael Johnson, Director of Advancement at NDN Collective. The session highlighted how powerful state actors ‘invisibilize’ the community, which helps avoid recognizing past and ongoing colonization of Indian country. Perpetuating economic stereotypes of communities’ economic status as being extremely poor, hence not as investible, or very wealthy, hence not needing support, helps absolve responsibility.
The panel also emphasized the need for hyperlocal understanding of contexts while investing, as there is not a monolithic culture across Indian country. The speakers maintained that the communities know the solutions to their problems, and the most effective way to work with Tribes is to partner with community-based organizations who had deep relationships with those communities, and to defer to their leadership. In addition, the panel strongly encouraged investors to adopt an ecosystem approach to addressing issues, as they are deeply intertwined.
Investor Experiences
Bill Smith, President and CEO of Santa Fe Community Foundation, led the second panel, titled Investor Experiences, which focused on the experiences of some investors who have been working with Native Communities for a long time. Panelists included Jen Astone, Principal at Integrated Capital Investing and Martin Jennings, Program Officer of Northwest Area Foundation.
The panelists emphasized the importance of building long-term investment commitments with the partners and identifying native led and native run institutions as partners. They strongly recommended learning about integrated capital approaches to investing which might require grants to prepare and nurture investments for the future. Jennings acknowledged that the wealth of the foundation originally came from Native assets. The Foundation is now working with a sense of responsibility towards the Native community and has committed 40% of its investments to Indian country.
To build a service-oriented culture and best serves the Tribal needs, the speakers advised that listening to the needs of Native communities, and what change means to them, is paramount. Building diverse teams with varied perspectives deepens the effectiveness of the work significantly. The speakers flagged that we are all ‘colonized’ in our thinking in some way, and we need to be mindful that our investments are not extractive despite the best intentions.
Jennings lamented the lack of pre-development funding for Native organizations and narrated an example of how $2M of such funding enabled a consortium of Tribal entities to set up an $800M wind energy project that transformed rural communities from users to generators of electricity.
The speakers encouraged all investors to be patient when investing in Indian Country, sharing that these communities are starting unique but disadvantaged places. It will take time for the investments to bear results.
The Spectrum of Opportunity
Vanessa Roanhorse, CEO at Roanhourse Consulting, moderated the final panel of the day, consisting of Eva Schulte, Vice President for Economic Opportunity at Travois; Tanksi Clairmont, Director of Tribal Solar Accelerator Fund; Nicolle Gonzales, Executive Director and Founder of Changing Woman Inititative; and Dave Castillo, CEO of Native Community Capital. The panel, titled Spectrum of Opportunity, underscored the range of investing opportunities in Native America, community centricity of their work, and their experiences navigating the challenges and raising capital within western financial systems.
The panelists identified the significance of intentionally choosing the nature of the organizational entity, be it a non-profit or a for-profit B-Corp or CDFI, in ensuring the impact orientation of the organization. Castillo advised investors to be clear about where they want to be on the transaction-transformation spectrum of investing; opportunities exist for everyone along this continuum. Investors should know their return needs and commitment to outcomes and upfront when communicating with Tribal partners. The key is to be clear and focus on implementing the strategy.
Panelists also commented on the importance of building technical capabilities of Native entrepreneurs and Tribes, so they can be more effective at attracting capital and also structure investment products such as tax credits, opportunity zones, etc,. themselves, rather than relying on outside entrenched interests that end up acquiring all the benefits.
Tesuque and Ohkay Owingeh Pueblos
The next day, the attendees enjoyed a field trip to Tesuque Pueblo to witness a Feast Day, offering them an experience to witness the Deer Dance, an important ceremonial aspect of Pueblo culture, and the opportunity to deepen respect and understanding of Pueblo life and Peoples.
During the second stop at Ohkay Owingeh pueblo, attendees engaged with Ron Lovato, Governor of the tribe; Tomasita Duran, Head of the Ohkay Owingeh Housing Authority; and Benny Lujan, Head of the Public Works Department. Duran and Lujan presented housing development and public works projects, followed by a tour of the sites. These examples reiterated the need for investments in Indian Country across the spectrum, from grants to debt, and also further stressed the need for investors to not wait for financial products to invest their capital–direct, uncomplicated opportunities exist in Indian country which have potential for deep community impact.
To learn more about the Rainmakers Investment Collaborative visit https://www.rainmakerscollaborative.org/.
