Philanthropy's Role in Economic Development Finance

• What are the project / organization criteria or positive / negative screens for equity investments? Some Questions to AskMission Investing at Foundations: PRI A term associated with private foundations. Per the IRS: PRIs can meet minimum 5% annual grant payout requirements as long as investments clearly were made for social and not financial return. [...] Blue Forest also plans to test the FRB model in multiple new landscapes and geographies across the Western U.S. [...] • filtering out undesirable or harmful (tobacco, weapons, oil/gas) • actively including desirable, ethical according to investors (health care, environmental protection) Source: Investopedia ESG, SRI and Impact Investing Investopedia: Socially Responsible InvestmentImpact Investing Any type of investments intended and structured to generate both a financial return and a measurable social return. [...] Impact investing includes financial capital deployed by all types of investors, including individuals, commercial investors, and institutions. It is the broadest term used to describe the investment of assets (rather than grants or distributions) for community change Source: Investopedia ESG, SRI and Impact InvestingMission-related Investing (MRI) MRIs are impact investments made by foundation [...] Source: Community Foundation Field Guide to Impact InvestingProgram-related Investing (PRI) A term most often associated with private foundations. Per the IRS: PRIs can meet payout requirements as long as they clearly were made for social and not financial return. [...] Source: Community Foundation Field Guide to Impact InvestingCatalytic Capital Catalytic capital addresses households', organizations', and community institutions' critical gaps in access to capital by • offering financing that accepts disproportionate risk and/or concessionary returns • Seeks to generate positive impact • Seeks ALSO to enable third-party investment that otherwise would not be p [...] Philanthropy's Role in Building Capacity for Community & Economic Development ProjectsRedwood Coast Region Priorities We anticipate that the greatest needs, gaps, and potential for building capacity to access public funds for transformative community and economic development rest with the following types of organizations: Native American Tribes – planning, housing, health, workforce, business [...] "must consult with a community foundation" Contract w/ lobbyists & govt relations consultants for independent view of where our region's priorities fit into state and federal strategies/programs/visions, how to influence. [...] Incubate a Community Development Consultants Network with subject matter experts our partners most need to design projects and secure public funding (consulting). [...] Supply the match funding frequently required in federal and state grants (often a burden for Tribes and small agencies). Fund the groundwork needed for partners to pursue alternative financing: tax credits, bond financing, community capital, etc.