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A foundation controlled by Berkshire Hathaway Vice Chair Ajit Jain sold $1.5 million of shares. It’s the foundation’s second sale so far in 2020.


Daniel Acker/Bloomberg

Both classes of

Berkshire Hathaway

stock are in the red for the year, and a foundation controlled by Vice Chairman Ajit Jain recently sold shares.

Berkshire Hathaway’s (ticker:

BRKb

) class A and B shares have year-to-date losses of 4.7% and 4.8%, respectively. By comparison, the

S&P 500 index,

a broad measure of the market, has gained 7.6% so far in 2020.

Berkshire Hathaway, helmed by legendary investor
Warren Buffett
, has trailed the market in recent years. We noted in February that an investor who put $1,000 in Berkshire Hathaway stock in 1965 would have $20 million, against $175,000 for a similar investment in the S&P 500—despite Berkshire Hathaway’s underperformance to the S&P 500 in the last decade. A high-profile recent misstep was an investment in Kraft Heinz (KHC) stock, which tumbled last year after the company took $15 billion in writedowns, slashed its dividend, and provided disappointing financial forecasts.

The Jain Foundation sold 7,000 class B Berkshire Hathaway shares on Sept. 30 for $1.49 million, an average per-share price of $213. The foundation now owns 185,095 class B shares, according to a form it filed with the Securities and Exchange Commission.

Jain and his wife Tinku are chairs of the foundation, which he established in the hopes of curing dysferlinopathy, which afflicts their son.

The foundation declined to comment on the stock sale, and didn’t make Ajit Jain available for comment. Berkshire Hathaway didn’t respond to a request to make Ajit Jain available for comment.

The Jain Foundation also sold Berkshire Hathaway stock earlier this year. On July 1, it sold 5,600 class B shares for $995,316, a per-share average

The Ford Foundation announced $180 million in new grant funding for U.S. racial justice and civil rights groups, the organizations large and small who are doing essential work to address systemic racism and support full democratic inclusion. This latest funding doubles the Foundation’s existing commitments in the civil justice arena to $330 million.



Darren Walker wearing a hat


© Michael Loccisano—Getty Images


This latest allocation has been made possible by a deft use of capital markets—unprecedented in philanthropic history. In June, the Foundation announced its plan to borrow $1 billion in social bonds to increase its grant-giving capacity at a time when mission-critical organizations large and small are losing revenue due to the coronavirus.

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“What was creative was figuring out a way to increase our giving while not diminishing the current value of our endowment,” Ford Foundation president Darren Walker tells Fortune.

He recalls the time in March and April when the Foundation was facing a confluence of issues, including a “very choppy” market: “I’m sitting in my apartment in New York watching the panic in the market and in what was happening in the nonprofit sector. So many nonprofits canceling their fundraisers, canceling their fees, and pulling back on their programs. Panic in the sector. So we knew we needed to step up.”

The IRS requires philanthropies to pay out five percent of their endowment, which may be acceptable in good times. “The problem is there is the inverse relationship between returns and need,” says Walker. “When the market’s going down, it’s usually when these needs are going up.”

Not to mention, the endowment itself. Ford’s endowment, currently $13.7 billion, lost $3 billion in the volatility of 2008. “We were paying out five percent of a much smaller denominator,” he says.

The breakthrough came from the Federal Reserve. 

“Fortunately, [Federal Reserve] chairman

Liz Erickson Impact Award honoree Joanne Canady-Brown, Community Award honoree Smith Family Foundation and Corporate Award honoree NJM Insurance Group have been selected as this year’s Impact Awards recipients for their commitment to community service.

The Impact Awards are given every year by NonProfitConnect, a Mercer County–based nonprofit that seeks to build “an increasingly diverse, skilled, and engaged group of nonprofit board and staff leaders.”

The honorees will be celebrated at NonProfitConnect’s Annual Impact Awards event on Oct. 29, starting at 5:30 p.m.

“As an organization committed to building nonprofit capacity, we are eager to recognize and honor individuals and organizations in our community that are engaging fellow community members and giving of themselves,” said Allison Howe, NonProfitConnect’s executive director. “As we face unprecedented challenges, it is inspiring to see local companies and leaders rallying resources to keep our nonprofits supported.”

Joanne Canady-Brown is being recognized with the Liz Erickson Impact Award, named for the late Elizabeth Erickson, a champion for Princeton-area community service.

Canady-Brown, the owner of local bakery The Gingered Peach, has been intimately involved in the Mercer County community. She has used sales of her tasty baked goods to raise several thousand dollars for multiple nonprofits including activating her “Dazzle Doughnuts” to support Young Audiences, a nonprofit supporting arts programs for children to her “Blackout Cookies” which boast a delightful mix of black and white swirls to fund I Am Trenton, a nonprofit supporting Trenton community projects.

During the pandemic, she continued her partnership with TASK to bring potato rolls to food insecure residents and provided trays of pastries to hospital providers who had not received other appreciation.

The Community Award, which recognizes a nonprofit that is making a significant impact will go to the Smith Family Foundation this year.

Founded in 2016, its mission is to