The San Francisco-based Tides Foundation has announced that it and the Underdog Foundation in Island Pond, Vermont, have been given majority ownership of AltruShare Securities. Under the agreement, the firm will reinvest its profits in initiatives designed to revitalize underserved, economically disadvantaged communities.
After a national search, the Bridgeport, Connecticut-based firm selected Tides and the Underdog Foundation, which together have forty years' experience in community-based investment. The foundations will help the brokerage firm determine the best ways to reinvest its profits — through the AltruShare Opportunity Funds at Tides — in the communities where it conducts business. Although the company will work closely with its new nonprofit owners, it will remain a for-profit venture. Under the new operating structure, AltruShare will not accept donations, and its nonprofit owners will not have a say in the management of the brokerage business.
Through its Community Investment Enterprise business model — a program the Underdog Foundation will now manage — AltruShare combines traditional brokerage services with social responsibility without incurring any costs for its clients. "Tides and Underdog bring a terrific track record of national expertise," said AltruShare co-founder and president Dawn Edwards. "We feel that given the same service and cost, clients will choose a brokerage firm whose profits are reinvested in the community."