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

Younger workers are concerned that social security will no longer be available for them when they retire. They fear that they have been paying into the system for years, but there will be nothing left when they retire.  Social Security Trustees released their annual report in April 2020, and stated there is a possibility that social security could be insolvent in 15 years. The current COVID-19 pandemic is likely also depleting reserves. 

Social security is paid out of a general fund; the treasury reserve has a provision for social security. For public optics, nobody in Congress or the White House wants to preside over social security payments disappearing, or social security going away. Therefore, social security will likely never disappear completely. Although young workers will probably still receive social security payments, their payments will significantly less than what current and past recipients are receiving. In the case of Medicare’s Part A, a Trust Fund provides the funding for that. That is not covered by the general fund, and this Trust Fund is expected to run out in around 2024, give or take a couple of years. Medicare and its Trust Fund is a topic for a future blog article.

The challenge of funding social security remains. One provision that helps and will continue to help is the taxation treatment of social security. Around 30% of Social Security recipients pay tax on their social security payments. They either taxed on 50% or 85% of their social security benefits. The income thresholds to determine your taxability of social security are low and have stayed the same for over two decades. Keeping these the constant is intentional, and has helped to raise revenues in order to continue the funding of social security.   

·   You pay tax on 50% of your social security

AM Best and Best’s Insurance Professional Resources will host a complimentary webinar, on Tuesday, Nov. 10, 2020, at 2:00 p.m. (EST). Insurers complain of a rise of large jury awards, juror anti-business bias and investor-funded litigation. A panel of claims and legal experts examine what’s driving social inflation, which types of claims are affected most and how the insurance industry is responding.

Register now:

Panelists include:

  • Daniel Herbert, president/chief executive officer, Three Griffins Claim Investigations and Adjusting;

  • Fred Karlinsky, shareholder, Greenberg Traurig LLP;

  • Dr. Bill Kanasky, senior vice president of litigation psychology, Courtroom Sciences; and

  • G. Jeffrey Vernis, managing partner, Vernis & Bowling.

Attendees can submit questions during registration or by emailing [email protected] The event will be streamed in video and audio formats, and playback will be available to registered viewers shortly after the event.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2020 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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John Czuba
Managing Editor, Best’s Insurance Professional Resources
+1 908 439-2200, ext. 5673
[email protected]

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Clover Health Investments said it would go public by merging with special-purpose-acquisition company Social Capital Hedosophia Holdings Corp. III  (IPOB) – Get Report

The move gives Clover, the San Francisco Medicare-supplement provider, an enterprise value of $3.7 billion.

The deal would generate $1.2 billion in gross proceeds, including a PIPE — private investment in public equity — of $400 million from a number of investors and as much as $828 million of cash held in the Social Capital trust account. 

The venture capitalist Chamath Palihapitiya, founder and chief executive of Social Capital, will invest $100 million of the PIPE and will be a senior adviser to the new company’s management.

Clover will receive as much as $728 million of transaction proceeds. As much as $500 million of cash proceeds will be allocated to current Clover shareholders. Clover’s senior officers will roll all their equity into the new company.  

“We have made it our business to make healthcare affordable. Our technology helps doctors, leading to better outcomes and lower out-of-pocket expenses for members,” said Andrew Toy, president and co-founder of Clover. 

Clover’s software platform delivers data and personalized insights to primary-care doctors at the point of care. 

The platform aggregates millions of health-data points — including claims, medical charts and diagnostics — and uses machine learning to synthesize the data with “member-specific information,” the company said.

Clover serves more than 57,000 members across Arizona, Georgia, Mississippi, New Jersey, Pennsylvania, South Carolina, Tennessee and Texas. The company says it is the fastest growing Medicare Advantage insurer in the country among insurers with more than 50,000 members. 

In turn Medicare Advantage is one of the fastest growing markets in the U.S. healthcare system with a value of $270 billion today and an estimated value of $590 billion by 2025, the

Social Security can be a complicated topic, but if you expect to depend on your benefits at all in retirement, it’s important to at least understand the basics.


The more you know about how the Social Security program works, the easier it will be to maximize your monthly checks. And by understanding these three concepts, in particular, you’ll be able to make the most of your benefits in retirement.

1. Full retirement age

Your full retirement age (FRA) is perhaps the most important Social Security concept to understand, because it has a direct effect on how much you receive each month. If you were born in 1960 or later, you have a FRA of 67 years old. For those born before 1960, your FRA is either 66 or 66 and a certain number of months, depending on the exact year you were born.

Your FRA is the age at which you’ll receive 100% of the benefit amount you’re theoretically entitled to. If you claim before that age (as early as age 62), your monthly checks will be reduced by up to 30%. But if you wait until after your FRA to file for benefits (up to age 70), you’ll receive your full benefit amount plus up to 32% extra each month.


In general, once you start claiming, your benefit amount won’t change (except for annual cost-of-living adjustments). That means it’s especially important to choose wisely when deciding when to claim benefits, because you’ll be stuck with this benefit amount for the rest of