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What’s New in Impact Investing?

 

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  We are in an incredible era of innovation.

We envision a world where capital and expertise come together to create a more just and vibrant society. We unlock the potential of mission-driven organizations through tailored investments, strategic advice, and accessible insights.               Antony Bugg-Levine

Following from the Nonprofit Finance Fund “Where money meets mission!” 

ENHANCED IMPACT INVESTMENTS: PUSHING MONEY EVEN FURTHER IN SERVICE TO MISSION

Nonprofits’ access to debt has grown, but the organizations with greater need are often riskier borrowers. Many nonprofits still remain locked out of the market, and the recession dramatically worsened this situation. As first responders, it is our obligation to responsibly channel capital towards where it needs to be— not where it is easiest to put it. We must challenge ourselves to push the field forward by being creative and not allowing ourselves to get too comfortable with our standard ways of doing business.

As a result, we are collaborating with partners to design and participate in investments and programs that allow us to share risk and operating costs. By pooling money, we can offer credit enhancements and blended capital to invest in organizations that would otherwise be too risky or too small to qualify for our traditional lending program. While these types of investments are complex, we believe that building prototypes will ultimately streamline costs and lead to a field-wide shift that unlocks more capital for the social sector. The excellent health of our portfolio to date is proof that we can pursue innovation while remaining sustainable.

Healthcare: Serving Low Income Communities

The New Markets Tax Credit (NMTC) program, managed by the CDFI Fund in the federal government’s Treasury Department, represents a cornerstone of creative impact investing in the US. By providing tax credits to private investors in exchange for investment in community development projects, the program stimulates investment by the private sector and helps increase access to capital for nonprofits and businesses that directly improve the health and vibrancy of low-income communities.

For More from Nonprofit Finance Fund:

Education: Helping Organizations Grow and Manage through Crisis

Arts: Supporting Small Organizations through Times of Need

 Antony Bugg-Levine is a leader in the impact investing sector. In fact, he and co-author, Jed Emerson (BlendedValue), coined the phrase at the Clinton Global Initiative. In 2013, post JOBS Act, impact investing is growing by leaps and bounds; Professor BL (Columbia U) is pushing the edges of social innovation and social impact.  

Follow him on @ABLImpact 

The Book: Impact Investing: Transforming How We Make Money While Making a Difference