Root Capital
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{{Short description|US-based nonprofit organization}}
{{Infobox organization
| name = Root Capital
| type = Nonprofit
| founded_date = 1999
| key_people = {{ubl
| William Fulbright Foote (founder, CEO)}}{{cite web|url=http://www.rootcapital.org/about-us/our-team|title = Our Team|publisher = Root Capital|accessdate = 2012-12-05}}
| founder = William Fulbright Foote
| homepage = {{URL|rootcapital.org}}
| location_city = Cambridge, Massachusetts, U.S.
| location_country = United States
| location = 130 Bishop Allen Drive, 2nd Floor, Cambridge, Massachusetts, U.S.
| area_served = Africa, Latin America, and Southeast Asia{{cite web|url=http://www.rootcapital.org/about-us|title = About Us|publisher = Root Capital|accessdate = 2012-12-05}}
}}
Root Capital is a nonprofit organization operating in poor rural areas of Africa, Latin America, and Southeast Asia.{{cite book |last1=Keohane |first1=Georgia Levenson |title=Capital and the Common Good: How Innovative Finance Is Tackling the World's Most Urgent Problems |date=27 September 2016 |publisher=Columbia University Press |isbn=978-0-231-54166-4 |page=117 |url=https://books.google.com/books?id=4L6lDAAAQBAJ&q=%22Root+Capital%22&pg=PA117 |language=en}}{{cite book |last1=Immerman |first1=Richard H. |last2=Engel |first2=Jeffrey A. |title=Fourteen Points for the Twenty-First Century: A Renewed Appeal for Cooperative Internationalism |date=23 June 2020 |publisher=University Press of Kentucky |isbn=978-0-8131-7903-2 |url=https://books.google.com/books?id=mszcDwAAQBAJ&q=Root+Capital |language=en}} According to its website, Root Capital "seeks to maximize the positive social and environmental impact of [its] work through a three-pronged strategy: finance, advise, and catalyze."{{cite web|url=http://www.rootcapital.org/our-approach|title = Our Approach|publisher = Root Capital|accessdate = 2012-12-05}}
Operations
Root Capital claims to follow a three-step approach towards making a positive impact in the poor rural areas of Africa and Latin America where it operates. The three steps are:{{cite book |last1=Paladini |first1=Stefania |last2=George |first2=Suresh |title=Sustainable Economy and Emerging Markets |date=6 November 2019 |publisher=Routledge |isbn=978-1-000-70905-6 |url=https://books.google.com/books?id=D628DwAAQBAJ&q=%22Root+Capital%22&pg=PT95 |language=en}}
- Finance: This involves making loans to rural small and growing businesses, including both short-term and long-term loans.
- Advise: This involves delivering financial training to current and prospective clients.
- Catalyze: This involves innovating on their own methodology to increase their own impact.
According to its impact page,{{cite web|url=https://www.rootcapital.org/our-impact/dashboard|title=Impact Dashboard|last=|first=|date=|website=|publisher=Root Capital|accessdate=2020-12-21}} Root Capital has disbursed US$1.5 billion between 1999 and 2020 and reached 9.9 million household members in rural communities.
Root Capital is one of several money managers to pursue a gender lens investing strategy.{{cite web
| url =https://www.nytimes.com/2015/08/15/your-money/with-an-eye-to-impact-investing-through-a-gender-lens.html?_r=0
| title =With an Eye to Impact, Investing Through a 'Gender Lens'
| last =Sullivan
| first =Paul
| date = August 14, 2015
| work = The New York Times
| access-date = May 18, 2016
| quote = }} In 2012, Root Capital launched their Women in Agriculture Initiative (WAI) to address the unique challenges faced by women in rural areas.{{cite web|url=https://rsfsocialfinance.org/2019/12/04/rsf-doubles-down-on-impact/|title=With Root Capital, RSF Doubles Down on Impact—and Impact Measurement|last=Daniels|first=Donna|date=December 4, 2019|website=RSF Social Finance|accessdate=2020-12-07}} The WAI uses capacity-building training and gender-lens investing to unlock growth at women-led and gender-inclusive businesses. These businesses, which represent 48% of Root Capital's portfolio, must have at least 30% women farmers and employees (or at least 20% if they are also women-led).Ibid.
Funding
Root Capital seeks funding from both individual donors and foundations. Foundations that have funded Root capital include Mulago Foundation,{{cite web|url = http://mulagofoundation.org/portfolio/root-capital|title = Root Capital|publisher = Mulago Foundation|accessdate = 2012-12-05|url-status = dead|archiveurl = https://web.archive.org/web/20130726013952/http://www.mulagofoundation.org/portfolio/root-capital|archivedate = 2013-07-26}} Jasmine Social Investments,{{cite web|url=http://jasmine.org.nz/who-we-fund/|title = Who We Fund|publisher = Jasmine Social Investments|accessdate = 2012-12-05}} and Peery Foundation.{{cite web|url=http://peeryfoundation.org/partners/|title = Partners|publisher = Peery Foundation|accessdate = 2012-12-05}}
External reviews
Charity Navigator had given Root Capital a four-star rating (its highest possible) continuously beginning in 2005, but downgraded their rating to three stars on December 1, 2019. It has since regained its four-star rating. {{cite web|url=https://www.charitynavigator.org/index.cfm?bay=search.history&orgid=10707|title = Charity Navigator - Historical Ratings for Root Capital|publisher = Charity Navigator|accessdate = 2019-12-05}}
In 2024, Root Capital was awarded the Specialty Coffee Association Nonprofit Sustainability Award{{Cite web |date=2025-02-21 |title=Sustainable Business Models in Specialty Coffee: Insights with 2024 Winners Sancoffee & Root Capital |url=https://sca.coffee/sca-news/2025/2/20/sustainable-business-models-in-specialty-coffee-insights-with-2024-winners-sancoffee-amp-root-capital |access-date=2025-03-31 |website=Specialty Coffee Association |language=en-US}} for their work collaborating across geographies, cultures, and supply chain roles, and sharing the lessons they have learned for the benefit of the entire coffee sector.
Charity evaluator GiveWell had a conversation with the CEO of Root Capital in September 2011,{{cite web|url=http://givewell.org/files/DWDA%202009/RootCapital/root%20capital%202011%2009%2016%20-%20final.doc|title = Conversation with Root Capital|publisher = GiveWell|date = 2011-09-16|accessdate = 2012-12-05}} and planned to publish a detailed review of Root Capital in 2013,{{cite web|url=http://givewell.org/international/charities/root-capital|title = Root Capital|publisher = GiveWell|accessdate = 2012-12-05}} however GiveWell's review of Root Capital was still not complete as of November 2019.
References
{{reflist}}
External links
- {{official website|http://www.rootcapital.org}}
Category:Charities based in Massachusetts