Learning the Basics:
Read through a quick guide to some fundamental concepts in community investing:
The Power and Impact of Community Investing
IEN approached specialists within the Community Investing space to get their perspectives on the value of Community Investing, understanding how to incorporate such investments in ones portfolio and how to truly make an impact regardless of varying levels of assets under management.
Maximizing Returns to Colleges and Communities
A handbook on community investment by the Responsible Endowments Coalition
IEN Curated Resources:
Publications & articles
A library of publications and articles IEN has developed on community investing
Webinars and online workshops
Recordings of webinars that IEN has hosted on community investing
Events
Access event summaries and panel recordings on community investing
Blogs
Collection of thought leadership by network members and partners on community investing
Invest with Community Development Finance Institutions (CDFIs)
Community Loan funds and Community Development Finance Institutions offer endowments cash or fixed income like investments that have a positive impact on the surrounding community. They have a risk/return profile that can make investments suitable for the fixed income or cash portfolio dependent on the tenor of the note or CD. When used as a cash investment, endowments may want to consider laddering investments as the loans made generally have a 1 - 10 year tenor and these investments cannot be sold on the public market.
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Step 1: Find CDFIs in your market or that align with your interests
- Loan Funds that accept individual investments by SVC highlights opportunities for investors to invest capital in these mission-focused community lenders
- CDFI Locator | Opportunity Finance Network
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Step 2: Evaluate and Invest
- Many CDFI's are rated by an organization called Aeris which rates both the financial stability and impact of the organization. A few have been rated by Standard & Poors rating agency.
Peer Examples
- Maximizing Returns to Colleges and Communities: A Handbook on Community Investment l Michael E. Swack, University of New Hampshire, 2009
- ESG & Community Impact Investing Roundtable | IEN event, 2019
- Community Investing Roundtable | IEN event, 2018
- The Power & Impact Of Community Investing | IEN's Expert Q&A Articles Series, 2018
- Partnership for Community Investing: Higher Education and CDFIs Working Together | OFN, 2021
Sample Investment Policy Statements
- 🔐 Sample Sustainable Investing Policies: You can see a comprehensive list of sample policies curated by IEN.[member only resource]
Additional Resources
- Place-Based Investing for Resilient Rural Development | Croatan Institute, 2016
- Strategies to Address Climate Change Risk in Low- and Moderate-income Communities | Federal Reserve Bank of San Francisco, 2019
- Higher Education’s Anchor Mission: Measuring Place-Based Engagement l Democracy Collaborative, 2017
- Community Investing | US SIF
- Place-Based Investing: Creating Sustainable Returns and Strong Communities l Democracy Collaborative
- Expanding the Market for Community Investment In the United States l US SIF, July 2013
- Investing Cash for Impact: A Guide for Asset Owners | Pathstone