Principal Financial Group 2023 Sustainability Report: Principal® Foundation Philanthropic Philosophy
The road to financial security is a unique personal journey
Originally published in Principal Financial Group 2023 Sustainability Report
Principal® Foundation philanthropic philosophy
The road to financial security is not a universal path. It is a unique, personal journey.
Our approach
Principal Foundation is committed to removing barriers, creating opportunities, and empowering more people to build financially secure futures. Principal Foundation is a duly recognized 501(c)(3) non-profit entity focused on providing philanthropic support to programs that build financial security in the communities where Principal Financial Group, Inc. (“Principal”) operates. While Principal Foundation receives funding from Principal, Principal Foundation is a distinct, independent, charitable entity.
Our grantmaking supports organizations whose work focuses on building people’s wherewithal to pursue financial security and expands access to the resources they need to reach their goals.
Specifically, our funding champions programs that address essential needs and promote financial enablement of individuals and small businesses.
Essential needs
When individuals’ essential needs are met, they have a sense of security, allowing them to focus on education and skill development and participate in the workforce, all of which are pathways to financial security. Therefore, we fund programs that provide food, shelter, and disaster and crisis relief around the globe.
Financial enablement
Grantmaking by Principal Foundation around financial enablement seeks to nurture a healthy ecosystem by funding programs that create and foster the conditions necessary for economic development. Our grants in this area fall into three categories: small business support, financial health and well-being research, and social and cultural connections.
Small businesses represent 99% of all companies nationwide that have paid employees, and they play a vital role in boosting local economies.1 As such, small businesses are a pathway to financial security for many. We fund organizations that help create a vibrant support network for small businesses, which provides the financial and technical assistance they need to thrive and keep their owners and employees on the financial security journey.
The more we understand the barriers individuals face on the road to financial security, the better we can identify ways to clear the path and accelerate progress. We continue to invest in research that explores financial health and identifies policies, practices, and products that the financial sector, employers, and policymakers could adopt to better serve groups facing financial insecurity around the world.
Research demonstrates that when communities are connected to the arts through social and cultural institutions, it creates fertile ground for economic and human development. Social and cultural institutions unify communities, boost local economies, spark innovation, and improve academic outcomes. That’s why we fund programs that expand access to social and cultural connections.
Principal® Foundation community investments
Our actions and performance in 2023
In 2023, Principal Foundation provided more than $18 million to our communities around the globe. The missions of these recipient organizations fall under at least one of our focus areas.
$18M total community investments in 2023
Stories of Impact2
Nutrition security: WesleyLife Meals on Wheels
WesleyLife Meals on Wheels received funding to aid with the expansion of a new campus for their programs. This project tripled the organization’s capacity to prepare and serve 3,000 nutritional meals per day to home-bound adults in central Iowa. The new facility includes the nation’s only hydroponic garden associated with a Meals on Wheels location. This program is more than just providing a hot meal: The new facilities have on-site multigenerational programming designed to help combat isolation among older adults.
Housing security: Minnesota Assistance Council for Veterans
Housing security is an important part of the journey to feeling financially secure, and this is especially important for veterans. Minnesota Assistance Council for Veterans received a grant from Principal Foundation to address this very issue. Their vision is for every veteran in Minnesota to have access to services and support to avoid homelessness and achieve sustainable housing. In 2022, they provided $3.4 million in direct financial assistance, provided comprehensive services to over 1700 individuals and families, and in total 427 veterans became housed.
Disaster relief: Maui Economic Disaster Relief: Maui Economic Development Board
A disaster can have detrimental impact on the journey to financial security. While hygiene products, food and water are quick to arrive in impacted areas, financial resources that fuel recovery often lag. Principal Foundation therefore concentrates our disaster relief on supporting long-term recovery efforts. For example, following the Maui wildfires, Principal Foundation provided funds to the Maui Economic Development Board (MEDB) to launch the Maui Business Recovery Fund, which distributed emergency funds to 95 small businesses to use as they saw fit to support their recovery efforts.
Small and midsized (SMB) business support: Washington Area Community Investment Fund Inc. (Wacif)
Fostering the SMB ecosystem is a fundamental part of the mission of Principal Foundation. When entrepreneurs and SMBs thrive they create a stronger community. Wacif’s mission is to promote equity and economic opportunity in the underserved neighborhoods in the Washington, D.C. region. Wacif’s work has resulted in 5,216 jobs created or retained, 665 hours of technical assistance given, and over $24.8 million loans and grants distributed. Over $13.8 million in total capital was given specifically to support women of color entrepreneurs.
Barrier removal: United Way Worldwide Ride United Transportation Access
One of the biggest barriers many people face on their way to financial security is accessing the transportation needed to complete education, receive health care, or to secure or maintain employment. United Way Worldwide received grant funding for their Ride United Transportation Access Program. During their 2022–2023 program year, they provided 154,827 rides, serving 35,183 unique clients across 2,345 cities.
Social and culture connections: Feel Your Best Self (FYBS)
When a person’s mental health suffers, so does the ability to advance their financial security journey. We seek to address mental health in affirming, nonjudgmental ways through Principal Foundation grantmaking. One such example is collaborating with University of Connecticut’s Feel Your Best Self program, which provides tools for mental wellness to school-age children, families, and committees. FYBS had over 39,000 toolkits downloaded, more than 116,645 YouTube views, won five kids entertainment awards, a Kidscreen Award, and four Telly awards. Employees from Principal worldwide also participated in puppet-making and kit-building events to distribute to local youth.
To learn more, read the Principal Financial Group 2023 Sustainability Report.
1According to the U.S. Small Business Administration, 2024 small business employment statistics.
2Impact stories from 2022 grant recipients.
Principal Financial Group Foundation, Inc ("Principal® Foundation") is a duly recognized 501(c)(3) entity focused on providing philanthropic support to programs that build financial security in the communities where Principal Financial Group, Inc. ("Principal' operates. While Principal Foundation receives funding from Principal, Principal Foundation is a distinc independent, charitabl entity. Principal Foundation does not practice any form of investment advisory services and is not authorized to do so. © 2024 Principal Foundation.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.
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