As funders consider how best to support communities in this moment, Stupski Foundation stands as a compelling example of what happens when foundations transform endowment dollars into community investments to multiply their philanthropic impact. Stupski Foundation is a time-bound, private foundation committed to returning all of its resources to communities in Hawaiʻi and California’s San Francisco & Alameda Counties by 2029. As a long time CNote partner, Stupski has been able to stretch its impact far beyond traditional grant making by embracing innovative approaches to impact investing.
Stupski Foundation Overview and Mission
Founded by Joyce and Larry Stupski, the foundation concentrates its work on four issues where equity gaps are most acute: food justice, postsecondary success, early brain development, and serious illness care. What sets Stupski apart is its commitment to spend-down and respond to community needs in real-time. After initially charting a course to award final grants through 2027 and close the foundation by 2029, the foundation recently decided to accelerate its spend down in direct response to threats facing the communities and causes it serves.
The Journey to Impact Investing
Stupski’s journey into impact investing began around 2019 when the team recognized the opportunity to leverage the foundation’s endowment for greater impact while funds were “sitting on the sidelines.” This initial exploration resulted in $9 million allocated to mission-related investments, including their first partnership with CNote. These six initial investments were all structured as mission-related investments with small interest amounts to ensure capital preservation—crucial since these dollars were eventually destined for grant-making.
Scaling Up: The $25 Million Commitment
As Stupski progressed through its spend down timeline, the foundation identified another opportunity to leverage its resources more strategically. After analyzing cash flows and grant making projections, the foundation identified $25 million that could be deployed for three to five years in impact investments without compromising its ability to award grants. Building on Stupski’s previous experience with CNote, this second phase represented a more confident and accelerated approach as the foundation entered the final chapter of its spend down.
Why CNote: Alignment and Trust
CNote emerged as a natural partner for Stupski’s expanded impact investing strategy, particularly through its Fixed Income Notes. The decision came down to several key factors:
Mission alignment: The fixed income note Stupski selected focused on providing capital to overlooked entrepreneurs which resonated strongly with Stupski’s equity-focused mission.
Capital preservation: Given that these investment dollars would eventually convert to grant funding, the security of capital return was paramount.
Community focus: CNote’s fixed income note and its specific focus on underserved communities aligned perfectly with Stupski’s impact priorities.
Impact in Action: AltCap California
AltCap California’s work exemplifies the kind of community-level impact Stupski seeks to achieve. As of August 2025, the organization has already deployed $14 million across nearly 130 loans, providing $5,000–$500,000 in flexible, patient debt capital. Their innovative approach includes both traditional small business loans and revenue-based financing—structured repayment tied to monthly sales percentages, often requiring no collateral or personal guarantees.
A powerful example of this impact is AltCap California’s collaboration with California Southern SBDC. Utilizing California Southern SBDC’s flexible state small business guarantee program, AltCap California has created more streamlined loan products to help diverse, underserved food entrepreneurs secure fast, flexible capital precisely when they need it.
One such recent loan was to a company called Todo Verde, owned by chef Jocelyn Ramirez, on a mission to bring authentic Mexican flavors to a healthy plant-based diet. Through her products, cooking demonstrations, and education she continues to advocate and act for healthy food access in her community. The type of flexible and responsive lending that AltCap California provided to Todo Verde directly addresses several equity gaps in food systems that align with Stupski’s core issue areas.
Streamlined Process, Accelerated Impact
Stupski developed a remarkably efficient process for their $25 million deployment, designing a simple application. The entire process—from application to commitment—took approximately six months, with most investments structured as three-year, 0% loans.
This streamlined approach reflects the foundation’s philosophy of “keeping the diligence light and trusting publicly available information,” allowing them to move quickly while maintaining appropriate oversight.
Looking Forward: Lessons for the Field
As Stupski continues its spend-down journey, they’re committed to sharing their lessons learned with other foundations. Their experience demonstrates that foundations can successfully leverage their full balance sheet for mission impact while maintaining fiduciary responsibility. Lorree Novotny, Director of Finance and Accounting, indicates that Stupski hopes to“influence others to look at their endowments and what they can do to leverage capital into investments that make a difference in communities.”
Through partnerships with CNote and the resulting support for organizations like AltCap California, Stupski is proving that time-bound philanthropy combined with all-assets activation can create powerful catalytic effects. Their approach enables community partners to move faster and achieve greater impact, creating a multiplier effect that extends from foundation boardrooms to ghost kitchens in Long Beach, ultimately reaching the diverse entrepreneurs who need capital most.
