Forbes reports that a growing number of community foundations are using impact investing to achieve their mission.
The article is based on findings in A New Anchor Mission for a New Century, a new report issued by the Maryland-based Democracy Collaborative. The authors studied and report on 30 innovative community foundations (29 in the States and one from Edmonton) that are doing much more than grant-making to effect change in their communities.
In addition to highlighting the objectives, benefits, barriers and the steps for starting an impact investing program, the report identifies the following four strategies:
- Partnering with community development financial institutions (CDFIs)
- Creating loan pools
- Providing loan guarnatees
- Direct investment in local economic development efforts.
The report also provides further details on each of the 30 foundations.
Great inspiration from a Detroit social enterprise that is making a huge difference in the lives of people who were formerly homeless.
We recently provided due diligence reports on impact investments for charitable foundations in the US. Due diligence clients have included the Vermont Community Foundation, High Meadows Fund and the Castanea Foundation. All three foundations are leaders in using impact investments to further advance their public-purpose missions. The Vermont Community Foundation is committed to building philanthropic resources that will sustain healthy and vital Vermont communities now and into the future. High Meadows is extremely concerned about the impact of a changing climate. They focus their activities on energy, land use and sustainable agriculture. Castanea’s mission is to conserve and protect agriculturally productive and environmentally significant land and water resources in its target region.
MaRS’ Centre for Impact Investing has just published “Mobilizing Private Capital for Public Good: Priorities for Canada,” a report by Canada’s National Advisory Board to the G8’s Social Impact Investment Taskforce. (more…)