Key Takeaways
- • John and Laura Arnold have created Arnold Ventures, an LLC holding company that will oversee their foundation, donor-advised fund, and the political action group Action Now Initiative, according to Barron's as cited by Capital Research Center.
- • Arnold Ventures has four program areas: criminal justice reform, health policy, education, and public finance including pension reform, with a stated goal to "invest in evidence-based solutions that maximize opportunity and minimize injustice."
- • The structure allows the Arnolds to use lobbying, startup investment, and grantmaking, which Arnold Foundation president Kelli Rhee said was chosen to drive policy change faster than nonprofit grants allowed.
- • Rhee said Arnold Ventures would not increase impact investing relative to past activity and pledged continued transparency.
- • The Arnolds' latest reported investment was a September 2018 pledge of $1 million plus $9 million in credit to CivicaRx, which plans to make 14 generic hospital drugs with $100 million in capital and credit.
Summary
The Arnolds have joined a growing group of donors who use limited liability companies rather than traditional foundations for their philanthropy, a trend that Capital Research Center notes has accelerated in recent years alongside the Chan Zuckerberg Initiative and the Omidyar Network. The Arnolds' move, first reported by Abby Schulz at Barron's, places their private foundation, donor-advised fund, and the Action Now Initiative political action group under a single umbrella organization called Arnold Ventures.
According to the organization's website, Arnold Ventures aims "to invest in evidence-based solutions that maximize opportunity and minimize injustice." Its four program areas are criminal justice reform, health policy, education, and public finance, which includes pension reform. The group employs an "evidence-based policy analyst," reflecting its emphasis on research-driven advocacy.
Arnold Foundation president Kelli Rhee told the Chronicle of Philanthropy that the shift was driven by a desire to create change faster than grants to nonprofits allowed. "We have to be thinking about driving change at scale," Rhee said. As Schulz noted, the LLC structure permits lobbying, startup investment, and grantmaking as the organization sees fit. Rhee also said Arnold Ventures would hold itself to "the highest standards of openness and transparency" and that the structure was not intended to obscure spending. She added that the organization would not expand impact investing beyond its past levels.
The Arnolds have drawn criticism from both sides of the political spectrum. Progressive critics object to their efforts to curtail public pension abuse, while some conservatives object to their support for Planned Parenthood and the fact that the Arnolds describe themselves as Democrats who donated to Barack Obama. The most recent investment cited is a September 2018 commitment by the Arnolds, seven hospital systems, the Peterson Center on Healthcare, and the Gary and Mary West Foundation, who pledged $1 million and offered $9 million in credit to CivicaRx, a venture using $100 million in capital and credit to manufacture 14 generic drugs used in hospitals.
John Arnold told Texas Monthly in December that the couple's work is "less about capital campaigns and building infrastructure," and that they are willing to accept higher-risk, potentially higher-impact grants. Chronicle of Philanthropy editor Stacy Palmer described them as donors focused on advocacy rather than naming rights. John Arnold is 45, and the couple could remain active donors for decades.
According to the organization's website, Arnold Ventures aims "to invest in evidence-based solutions that maximize opportunity and minimize injustice." Its four program areas are criminal justice reform, health policy, education, and public finance, which includes pension reform. The group employs an "evidence-based policy analyst," reflecting its emphasis on research-driven advocacy.
Arnold Foundation president Kelli Rhee told the Chronicle of Philanthropy that the shift was driven by a desire to create change faster than grants to nonprofits allowed. "We have to be thinking about driving change at scale," Rhee said. As Schulz noted, the LLC structure permits lobbying, startup investment, and grantmaking as the organization sees fit. Rhee also said Arnold Ventures would hold itself to "the highest standards of openness and transparency" and that the structure was not intended to obscure spending. She added that the organization would not expand impact investing beyond its past levels.
The Arnolds have drawn criticism from both sides of the political spectrum. Progressive critics object to their efforts to curtail public pension abuse, while some conservatives object to their support for Planned Parenthood and the fact that the Arnolds describe themselves as Democrats who donated to Barack Obama. The most recent investment cited is a September 2018 commitment by the Arnolds, seven hospital systems, the Peterson Center on Healthcare, and the Gary and Mary West Foundation, who pledged $1 million and offered $9 million in credit to CivicaRx, a venture using $100 million in capital and credit to manufacture 14 generic drugs used in hospitals.
John Arnold told Texas Monthly in December that the couple's work is "less about capital campaigns and building infrastructure," and that they are willing to accept higher-risk, potentially higher-impact grants. Chronicle of Philanthropy editor Stacy Palmer described them as donors focused on advocacy rather than naming rights. John Arnold is 45, and the couple could remain active donors for decades.
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