Rebecca van Bergen is the founder and executive director of Nest. The St. Louis-based nonprofit fosters gender equity and economic inclusion by supporting the growth and engagement of artisans and makers around the world through mentorship, networking and educational resources. Bergen shares how Nest was created and the importance of family foundations in continuing her mission.
What inspired you to create Nest?
When Muhammad Yunus, a Bangladeshi social entrepreneur, banker and economist, won the Nobel Peace Prize in 2006 for pioneering the concepts of microcredit and microfinance, enthusiasm for the field exploded. New organizations and corporations emerged to put Yunus’ principles into practice, scaling applications of microfinance that are not necessarily based on a strong research foundation guiding their actions. Keep in mind that these were the early days of “not only for profit” businesses. And many of the emerging firms, while driven by a social mission, were also focused on protecting their bottom lines.
As a young student just graduating with my master’s degree in social work, I understood effective social programs to be less about public policy and more about direct practice with people. So the rapid scaling of widespread lending, even if it was small dollar amounts, took me aback. Loans create debt. The conflation of these two concepts was worrying to me.
My interest in generating economic opportunities in emerging economies without the burden of debt drove me to found Nest. My vision was for a sustainable model for holistic business development, including education and market building. Following my interest in global development, I conducted my fair share of academic research and fieldwork in countries worldwide. Craftswomen were everywhere I went. Yes, there were farmers, too, but most women I saw made things with their hands. Instead of giving a man a fish, as the old adage goes, I wanted not just to finance a woman’s purchase of a sewing machine but to give her the skills to improve and grow her business.
The rapid rise in consumer demand for handcrafted items has not only taught us about this sector's power to advance women's rights and opportunities globally but also shined a light on how far behind we have been until now. Too frequently pegged as “niche” and “nonscalable,” artisan communities have been left out of philanthropic investment for a long time. It is time to change this narrative to one in which handworkers worldwide are recognized as pioneers at the forefront of a counterrevolution to the increasing automation we see around us.
How has Nest grown since its inception?
I founded Nest in 2006 from my studio apartment in St. Louis. Today, we work with roughly 2,400 small and medium creative enterprises in 125 countries, directly reaching more than 245,000 people. Beyond this, over 1.4 million families and children are impacted by the economic independence of the women we work with.
Our ability to scale to hundreds of thousands of people worldwide is driven in part by our unique approach. Nest's work covers both the public and private sectors. We believe gaining support from the fashion and home-design industries is crucial for creating lasting change that benefits artisans and brands. We work with leading global retailers like Target and beloved brands like Patagonia and Hermès. These brands drive ongoing purchasing power for artisans and makers and make philanthropic investments alongside our charitable and individual contributors, which is championing a flourishing artisan sector.
How does Nest help artisans and makers thrive?
Nest supports the artisan and maker economy's responsible growth and creative engagement by building a world of greater gender equity and economic inclusion. Through programs that support the well-being of artisans both in the United States and globally, Nest is bringing radical transparency and opportunity to the handworker economy, which has been overlooked and ignored for a long time.
In a world where we are becoming increasingly removed from the people, places and products that support and enrich our lives, Nest provides the resources and relationships that uplift the people and traditions behind the artisan economy. Sitting at the intersection of commerce and global development, we invest in business education, financing and peer support for craft and creative entrepreneurs. At the same time, we offer strategic, sustainable support for brands, retailers and designers to build lasting, ethically driven purchasing relationships with global artisans and U.S. makers.
What is the impact of the organization on artisans and makers involved?
Nest's sustainable business model stimulates supply and demand for responsibly sourced handcrafted products. Our approach to working directly with artisans, small makers, small businesses and brands ensures localized impacts and systems-change solutions. Through grassroots programs, we empower local leadership in the U.S. and worldwide and arm artisan entrepreneurs with resources to grow and prioritize the well-being of a predominantly female workforce.
One example of our approach is our work with an artisan business in Rwanda and Uganda. The 90% female-powered business has realized $489,000 in sales from two initial orders for hand-woven baskets placed by major international brands one year after participation in Nest’s in-depth business education programming. Economic wins like this have a tremendous social impact on the artisan communities in countries where unemployment is estimated to fall between 80% and 96%. Following participation in Nest’s programming, 80% of the workers employed by this artisan partner now use a bank account, 100% stated this income enabled their children to complete an education, and 94% have purchased health insurance.
Another powerful example of our work in the United States is with a group of quilters in Gee’s Bend, Alabama. Most of the residents in this rural community trace their lineage back to enslaved people and shareholders of the Pettway Plantation. After emancipation, many freed slaves stayed on the land as sharecroppers and settled in Bend. The Gee’s Bend community is renowned for its exceptional quilting style, known to have been passed down through generations over the last 200 years. Their story constitutes a crucial chapter in the history of American craft.
Unfortunately, this fame has not translated into economic advancement. The average annual income in Gee’s Bend remains at about $16,000. Some residents live without the basic amenities of mobile and internet access, limiting the quilters’ ability to expand the sale of their goods.
Since 2019, Nest has been working with the quilters of Gee’s Bend to provide business development training and establish sustainable revenue streams for the community. This has included support for the quilters as they were onboarded onto Etsy in 2021, allowing them to connect with interested shoppers nationwide for the first time. Additionally, Nest aided in the creation of the annual Airing of the Quilts Festival in the community and has facilitated thoughtful design collaborations with brands like Greg Lauren, Marfa Stance and Chloé. These market opportunities have generated more than $1 million in direct income for the quilters.
Quilters reported that they used the earnings for the following personal expenses, which are helping them move forward individually and as a community — such as bills, debt payments, household improvements, purchase of essentials like washing machines and stoves, personal savings.
What are some ways Nest works with family foundations, and how involved are family members from these organizations?
Nest works closely with individuals and family philanthropies, leveraging their support to advance our mission of empowering artisans and creative entrepreneurs. Today, philanthropic funding accounts for 70% of our annual budget, which allows us to be responsive and flexible to the changing needs of makers and artisans in the U.S. and globally.
Beyond funding, Nest works with family foundations and their members in several ways, allowing funders to take a more active role in their support if they choose to do so. Some of our most beloved programs, including our Artisan Accelerator and Makers United initiative, were born out of pilot programs launched with support and input from family foundations.
Nest’s Artisan Guild is a global community of nearly 2,400 social entrepreneurs needing expertise to help scale the grassroots impact of their artisan enterprises. Nest’s fellowship program matches talented professionals across various industries — like law, accounting, design and marketing — with artisan businesses seeking advice, training and project-based mentorship. This hands-on, skills-based volunteer support fosters the growth of these creative enterprises and strengthens the connection between Nest and our philanthropic supporters.
Additionally, Nest organizes domestic and global immersion trips to artisan communities. These trips are opportunities for donors to witness the impact of their contributions, interact with the individuals benefiting from Nest's programs, and gain a deeper understanding of our global mission and model in action.
Unblurring the boundary between philanthropy and impact investing
By NICK REES
Many families wrestle with how to think about philanthropy versus impact investing — what are the goals of each capital pool, and how do they relate? More practically, what does best-practice implementation look like, and what can be learned from each of these tools for social change?
Defining family values and employing them through philanthropic giving and impact investments can be what differentiates families who build multigenerational legacies from those who do not. A deeper understanding of both — and the connectivity between them — allows families to pursue their value alignment more effectively.
Philanthropy is the use of private capital for individual or public benefit. Its aim is not only to do good but also to influence societal constructs. It’s therefore a powerful force.
However, many families’ philanthropic activities, as well as being linked to a deep sense of purpose and a desire to help humanity, often have several secondary intrinsic purposes, including:
- To inform the next generation of family values, including why their wealth exists and their responsibility to manage it wisely.
- To involve a wider group of family members. Here we often see the younger generation driving the conversation and educating matriarchs and patriarchs.
- To inspire all generations to do more, and so the endeavors become embedded within the family value set and handed down over time.
These three I’s can amplify a desire to give back to society by collectively providing families with a strong clarity and purpose to engage. However, a fourth element can also be particularly relevant to families: tax incentives. While taxes are unlikely to be the driving force, they can be an incremental consideration, as they incentivize donors who are high taxpayers to “do good” while reducing their tax burden.
Motivations aside, philanthropy typically exists as a distinct cause outside of the scope of the family investment portfolio. However, the proceeds from a traditional investment portfolio may be used to fund philanthropic causes, thereby connecting philanthropy to the investment strategy-setting objectives.
As defined by the Global Impact Investing Network in 2022, impact investments are investments made with the intention to generate positive, measurable social and/or environmental impact alongside a financial return. This last point — requiring a financial return — is important, as it clearly differentiates impact investing from philanthropic giving, where no financial return is required.
The concept of investing without doing harm via environmental, social and governance (ESG) best practices is now widely familiar, but it is not synonymous with impact investing. Impact investing is distinguished from ESG by three practices:
- Intentionality: It is insufficient to be “less bad.” Instead, investments must be intentionally good, such as to advance public welfare.
- Measurement: While ESG and impact investing share the intention to deliver positive impacts, the results in the case of impact investing must be quantified. This can be difficult, as measuring long-term outcomes as opposed to shorter-term “outputs” is complicated by other influencing factors. Doing it well is key in attracting additional capital, which can then help scale positive outcomes.
- Contribution to solutions: In providing a financial return, impact investments aim to attract a distinct additional capital pool that might not otherwise exist, creating a "market-based" solution.
Philanthropy and Impact Alignment
Philanthropy and impact investments are holistically aligned. However, some have expressed criticism that the growth of impact investing cannibalizes philanthropic capital. The ideas that follow dispel this myth:
The world isn’t short of problems. The world’s financial requirements for achieving the 17 United Nations Sustainable Development Goals are estimated to be between $5 trillion and $7 trillion per year between now and 2030, according to a United Nations Association report. Combining all forms of philanthropy, development capital and impact investments still leaves us short by some $2 trillion per year. In other words, there is room for both.
There is plenty of global wealth. The world’s net worth, as measured by the value of real assets, has risen by some $350 trillion in the past two decades, according to a Barron’s report from November 2021. As wealth accumulation has accelerated, so, too, has the potential for philanthropists to really make a difference.
They have differing intentions. Philanthropic capital is unconstrained; no financial return is required. The opposite is true of impact investments, which must focus on those sectors where the capital can be impactful and profitable.
The roles of philanthropy and impact investing in family wealth management toolkits are distinct. This distinction presents an opportunity by allowing families to engage in a powerful combination of both, giving clarity of meaning and purpose to family members across generations.