Investment Proposal: Khan Academy

As per your request, I've found an organization that has not just redefined global standards for education but has also made a significant impact on my own life. After countless hours of research and learning about the platform, I highly recommend investing in Khan Academy. Khan Academy's vision "to provide a free, world class education for anyone, anywhere" clearly aligns with our fund's core values and will be the perfect addition to our portfolio (About Us, Khan Academy). 

For your convenience, I have reiterated our investment criteria and have explained why Khan Academy fits the bill:

AMDP Investment Standards

• Triple Bottom Line: At AMDP, we assess the organization's performance based on the three P's: people, planet, and profit. The investment must generate social, environmental and economic value.
• Corporate Social Responsibility (CSR): The company must take responsibility to improve environmental and social well-being. CSR helps not only enhance customer and employee loyalty but also influences change in society (Financial Times).
• Social Enterprise: A social enterprise is an organization that addresses a fundamental unmet need or solves a social problem. Profit maximization is not the ultimate goal for such organizations (Radcliffe, Brent).
• Carbon Footprint: The operations of the company must not aggravate climate change by releasing greenhouse gases (e.g. methane), measured in tons of carbon dioxide equivalent (EPA). Since these gases are toxic to the environment, companies must aim to mitigate their carbon footprint.

Why Invest in Khan Academy?

Khan Academy is among the most renowned educational technology platforms in the world (The World Bank). In 2010, founder Sal Khan set a goal to provide free, world-class education through a series of short YouTube lectures. Seven years later, Khan Academy grew into a robust library of videos, articles, and interactive exercises covering math, science, finance, history, grammar, and more (Google.org).

Without Khan Academy, I for one would not have passed linear algebra, calculus or geometry throughout high school. The way in which Sal explained complex concepts in simple 12-minute videos actually made studying fun. But, why take my word for it? His platform has empowered over 50 million children from all walks of life to spend 5.6 billion minutes learning. That's around twice the amount of recorded time in human history (Google.org)! Investing in Khan Academy will help break the physical and monetary confines of school by giving children a basic human right - the right to education.

Why Invest in Sal Khan?

I find it important to know whom we're investing our money in. It's crucial to build trust and mutual respect in the relationship. With that in mind, Sal Khan will inspire you to believe that anything is possible. Not only did he simultaneously earn his bachelor's and master's degree at MIT but was also the Class President. He eventually got his MBA from Harvard Business School, where he was again Co-President of the student body. Prior to starting Khan Academy, he worked as a financial analyst for five years - only to realize his true calling was as an educator. Sal receives a humble compensation of 3.3%, which is lower than the average CEO compensation for four similar charities (Charity Navigator). In his own words:

"The next century needs a step change for human potential in which all learners are able to achieve their potential. We believe that aggregate human capability could increase tenfold if the tools, incentives, and mindsets are in place. That is what we are creating alongside students, teachers, parents, and partners."- Salman Khan, founder, and CEO of Khan Academy

Sal's testimony to provide free education and ability to execute on his mission reveals Khan Academy's potential.

How Does It Compare with Other Charities?

I understand that merely donating to an organization that has a social mission isn't enough; the charity must also perform the best amongst its peers. To prove Khan Academy's credibility, I studied its financial performance, accountability, and transparency against four competitors: Teach for America, Center for Excellence in Education, New Door Ventures, and Students Rising Above. On Charity Navigator, it scored a solid 97.5% in financial health, which surpassed all its peers. The organization lost some points in transparency as it protects its donor policy and financial statements from the public. Yet, it got a relatively high score of 89%. Overall, Khan Academy received the highest rating possible (4-stars) on Charity Navigator - America's trusted charity watchdog.

Who Are Its Investors?

Over the past decade, Khan Academy has raised funding from some legendary philanthropists. Since 2010, Google has donated $11 million to help Khan Academy build critical tools for students and enhance data infrastructure (Google.org). In 2011, The Gates Foundation donated $9 million to create new content and improve basic education standards. In 2012, Sean O'Sullivan, managing director of venture capital firm SOSventures, granted $5 million to market Khan Academy to educators around the world (Inside Philanthropy). In Sean's words, "Khan Academy has the capability to provide access to education in all parts of the world. Anyone would be lucky enough to be a part of such a great social movement (APTV.org)." These partnerships demonstrate that investing in Khan Academy will help solve our society's greatest challenges with education.

What Can We Do?

Khan Academy is a small non-profit organization that has a big dream - providing a free, world-class education for anyone, anywhere. But, this dream comes with a big price. I recommend investing in Sal's vision not because it will be a tax-deductible expense for AMDP, but because it's a step towards a brighter future for people around the world. A future where a young girl from the slums of Mumbai can teach herself how to read using just her family's smartphone; A middle-aged boy from El Salvador diagnosed with cancer can practice math while receiving therapy at the hospital; A blind grandmother from the suburbs of Los Angeles can learn about the human body while listening to videos. Let's help liberate people around the world by giving them what they deserve - an opportunity to learn. Let's help Khan Academy.






Works Cited

Charity Navigator. “Compare Charities.” www.charitynavigator.org/index.cfm?bay=search.compare&compare=17026%2C11838%2C13856%2C8609%2C16279.

Financial Times. “Corporate Social Responsibility (CSR).” Lexicon, Financial Times, lexicon.ft.com/Term?term=corporate-social-responsibility--(CSR).

EPA. “Overview of Greenhouse Gases.” United States Environmental Protection Agency (EPA), www.epa.gov/ghgemissions/overview-greenhouse-gases.

Google.org. “Khan Academy.” Google.org, www.google.org/our-work/education/khan-academy/.

Inside Philanthropy. “The Funders Pouring Money into the Khan Academy.” Inside Philanthropy www.insidephilanthropy.com/home/2014/6/26/the-funders-pouring-money-into-the-khan-academy.html.

Issuu. “The Khan Academy Report.” Issuu, 2015, issuu.com/jkaf/docs/the_khan_academy_report_spring_2015.

Khan Academy. “About Us.”  Khan Academy, www.khanacademy.org/about.

O'Sullivan, Sean. “Alabama Public Television.” Sean O'Sullivan on Khan Academy, Aptv.org, www.aptv.org/IQLEARNING/khan/video.php?readableid=sean-osullivan.

Radcliffe, Brent. “Social Enterprise.” Investopedia, Investopedia, 7 June 2017, www.investopedia.com/terms/s/social-enterprise.asp.

The World Bank. “Evaluating the Khan Academy.” The World Bank, The World Bank, 6 June 2014, blogs.worldbank.org/edutech/evaluating-khan-academy.