The JP Morgan Chase Foundation is a child company of JPMorgan Chase company engaged in banking and finance activities.
It’s an established and well-known organization, which facilitates the expansion of small businesses, aiding workforce of a company and providing financial support and capital to businesses.
The organization is also engaged in the development of the community on a global scale.
It’s an old company, which was established in the year 1969, New York, United States.
However, the Chase Foundation was established in 2000. Since then, it has seen a massive boost in its revenue and overall operational success.
Actively, the organization is present in 100+ countries and plans to expand the business to at least $1.75 billion globally by the end of 2023.
JP Morgan is a fascinating company, offering solutions to corporations and financial institutions, including merchant services, investment banking, commercial card, commercial banking, treasury & payments, and more.
Moreover, it’s an institutional investor in markets, prime services, security services, asset management, and more.
The stock prices of JP Morgan have managed to achieve a steady rate. Stock enthusiasts will notice minor changes in the stock prices over a period of the past 6 months.
Stuck at +/-$5, the stock has managed to stay stable near the $168 mark.
However, this is not good news for the investors since they won’t find an opportunity to earn money from their stocks.
As a result, JP Morgan is expected to receive reduced interest of people in their stocks.
While JP Morgan is primarily engaged in offering help and solutions, lots of people wonder how the company makes money if it grants millions of dollars every year?
JP Morgan earns massive commissions, fees, and interest through various means, including managing the investment, brokerage charges, insurances, and more.
Additionally, JP Morgan also earns a lot of money from loans and credit interests.
Primary income sources additionally include deposit fees, lending charges, and incomes based on mortgage.
JP Morgan’s business model for income sources is quite complex, which is difficult to understand by many people.
The primary sources of income are from banking and other financial services.
These services are offered by JP Morgan in exchange for certain fee and commissions, which are pre-defined by the company.
For getting the grants approved, the applicant needs to undergo a challenging process, which will help them raise funds at a high commission or brokerage fee.
Several organizations reach out to JP Morgan in pursuit to receive funding.
Once their objective is fulfilled, the applicant is expected to earn money from their project’s success, depending on their business model. However, in case of failure, the applicant might run into trouble since they will have a huge loan to pay off.
Still, owing to a great reputation, JP Morgan might further help the community in case of their project failure.
Extended Work Structure of the JP Morgan Chase Foundation
A few corporate-level operations carried out by the JP Morgan Chase Foundation include taking initiates or investing in small businesses and aiding communities through financial and other types of help.
Moreover, the JP Morgan Chase Foundation is also known to help conserve the environment with its exceptional business model.
Initiatives Taken by the JP Morgan Chase Foundation
The company has named their one investment “advancing cities,” under which they plan to invest $500 million in a span of 5 years.
This investment is made in those communities and businesses of developed cities, where the businesses and communities failed to receive economic growth benefits.
As an initiative, these businesses will now receive benefits through the JP Morgan Chase Foundation in terms of capital investment, mentorship (if needed), and financial stability for improved growth pace.
Currently, “signature cities,” denoted by the JP Morgan Chase Foundation, denote the list of well-developed cities around the world, which failed to improve the businesses’ economic growth as the city progressed.
Below is the list of such cities in which JP Morgan has invested or plans to invest so far:
- San Francisco
- Greater Paris Region
- Greater Washington Region
How the JP Morgan Chase Foundation Initiatives Work
JP Morgan follows a well-planned strategical procedure to invest and take initiatives in any city. Below is a summary of the procedure:
Approaching the business or a community from the list of target companies. Communicating with them and trying to seal the deal. This leads to collaboration, marking an end to the first step.
Once the deal is closed, they’ll conduct meetings and plan strategical growth policies.
Inclusive growth planning will be executed throughout life; hence it is very crucial to develop properly.
Growth failure indicates massive problems, which a company was originally unable to tackle.
Now with the help of JP Morgan, these companies will divide a large problem into small manageable parts and overcome the obstacles by dealing with these small parts to solve the large problem.
As the plan executes, some data will generate. These data are collected by the statistical experts for further deep analysis.
The analysis helps understand the success or failure and whether the planning demands modification. The data analysis further demands huge investments made possible by the JP Morgan Chase Foundation.
Once the data are collected and analyzed, the company will check if it’s the right plan to execute. The company will begin the execution and start supporting the community or the organization. This step involves full-fledged plan execution.
In the next step, JP Morgan engages anchor institutions, which play a vital role in supporting and developing an organization.
Risks in manageable amounts are taken so that loss incurred won’t put all the efforts in vain. Small risks help a company step forward in case of success.
If there’s a failure, JP Morgan Chase Foundation analyzes what adjustments can be made in the next risk. These seven steps will now be iterated since the theoretical and practical execution of the plan has now finished.
Minor adjustments might be required at various stages depending on the latest market and customer’s mindset scenario on a global level.
How JP Morgan Is Strengthening Communities
JP Morgan is not only investing in and mentoring the organizations for their growth, but is also providing additional resources that are ideal for strengthening communities.
Not all organizations lack funds and capital requirements. Therefore, any community, who is unable to understand and cope up with the market situation often gets aided by JP Morgan.
JP Morgan Chase Foundation deploys its expert personnel, staff, and experts, who all together analyze the community’s working model and suggest the necessary changes. These experts may be volunteers or paid staff.
Each working professional active in community strengthening often work on an hourly basis, which helps JP Morgan calculate how many hours of help they’ve provided to the community build-up process at a given point of time.
Environmental Betterment & Sustainability
JP Morgan is engaged in working with organizations that are dedicated to sustaining the environment through clean energy solution, low-carbon economy, and other similar domains.
The organization supports these businesses by providing their resources and financially investing in them. Additionally, they work on diminishing or modifying the operations that are leaving a negative impact on the environment.
Such operations are mostly done by corporate offices, banks, and the IT industry (preferably data centers). By conducting meetings with the stakeholders, JP Morgan actively works on figuring out new opportunities and methods to revolutionize energy resources for a better environment.
Online Grant Procedure Guidelines for the Application- Quick Guide
Any organization willing to be helped by the JP Morgan Chase Foundation through grants shall visit their official website and submit an online application form.
The application will be reviewed, and the concerned team will reach out to the organization for further proceedings. Below are the general guidelines to be considered while applying for the grants:
- An introduction of the business, which states a quick tour of the business organization and its description.
- Applicants must include the mission of their company, any recent achievements that the organization achieved on any level (if any).
- They must include the focus of their program and how many people they’ve served so far through their program. The numbers do not need to be attractive to receive the grants, but some numbers are expected, though.
- The description of the project and its budget must be informed in the application form.
- The applicant must keep in handy all the data associated with the plans that will elevate their program and the expected outcomes from their program’s plans.
- Any applicant should mention the geographical location and boundaries that they may serve through their program.
- Applicant’s correct contact information.
- List down any previous investors or funds providers (if any). If funded previously, list down the amount along with the spending. Also, mention the outcomes or the goals that the program achieved through the previous funding. This option may be left blank in the absence of past funding.
Additional Grants Application Requirements- Quick Details
The JP Morgan Chase Foundation may ask from their applicants certain additional details before approving the grants. Below is a summarized description of them:
- Company’s latest budget at the time of application filing. Applicant must clearly describe the funding sources and at what level did this funding occur.
- The JP Morgan Chase Foundation also asks its applicants to provide the latest annual financial report in addition to audits and relevant reports.
- All the board members with their affiliations in the organization must be presented.
Application Approval Criteria for Grants- Summarized Information
The JP Morgan Chase Foundation, upon receiving an application, will perform a few checks, based on which they accept or reject the application. These checks are covered below:
- The staff will go through the objectives listed in the application associated with financial, programmatic, and organizational objectives. As a result, the applicants must clearly define the objectives and back them with the relevant documents for complete transparency. JP Morgan needs to ensure that the applicant is clear with their objectives, mission, and vision and that it’ll use the grants in the correct manner.
- JP Morgan goes through the list of fund sources (whether obtained from public or private entities). The funding must be backed by genuine evidence of funding from the source.
- The targeted population that will be served upon grant approval.
- JP Morgan will ensure that the applicant’s program is catering to a genuine cause or need. It must not be serving or spending money on unnecessary issues in the world. Moreover, JP Morgan checks if the applicant is superior to any rival engaged in a similar program. If not, then the applicant may be required to collaborate with the major players in the same domain for better growth.
- The applicant’s relevant documents associated with the prior program success will be assessed. JP Morgan will review the success in previous programs carried out by the applicant (if any), which resulted in a massive success that helped a large population on a global or small level.
While the JP Morgan Chase Foundation has set up a lengthy and difficult process to provide grants, there are a few points that the applicant must ponder prior to application filing.
JP Morgan is committed to funding only non-profit organizations and any similar organizations that are completely working towards public betterment.
These can include charitable companies. Such companies are listed under section 501(c)3, which is the reason for submitting the same document at the time of filing.
JP Morgan will also enquire about the applicant’s EIN tax number. No individual, whether working for a noble cause or charity, is eligible for application filing.
Applicants should also keep in mind that JP Morgan may charge additional commission and fees for their services. The complex grant procedure ensures that no fake identity or scam attempts take place in the organization.
If it grants money, JP Morgan may take it back from the applicants with hefty interest. Therefore, it’s advisable that reaching out to JP Morgan should be kept as a last choice for funding sources.
One reason for the complex grant application process is that JP Morgan needs to ensure that the project it is investing in is profitable and it’ll get its money back along with the services charges and other profitable commissions.