Community Investment: Invest to End Poverty

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Community Investment.
Invest to End Poverty
Calvert Social Investment Foundation Shari
Berenbach, Executive Director
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Where does Community Investing fit into the
broader responsible investment picture?
Socially Responsible Investing
Community Investment
Shareholder Activism w/ companies
Screening publicly traded stocks bonds
...in people!
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Calvert Group Calvert Foundation

• Mutual fund company with 8 billion in assets
  under management
• 15 Years ago launched Socially Responsible
  Investment - social screens for publicly traded
  securities
• In 1990 Calvert socially-screened mutual funds
  elected to place 1-3 of total assets in
  community investments (13.5 million)

• Established Calvert Community Investments in
  1995 individuals/institutions invest soundly in
  global pooled portfolio (80 million/assets)
• Creating community investment as a new asset
  class in the financial services industry
• Developing information and investor services for
  C.I.
• Administers the Calvert Groups 1-3 mutual fund
  allocation into C.I.

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Calvert Foundation adds value by reducing risk,
providing transparency and professional
management

• BORROWERS

• INVESTORS

Repaid
Repaid
Calvert Foundation Reduces Risk
Individuals
Investment dollars
Loans
Foundations

• Security enhancement
• Portfolio diversification
• Transparency
• Professional management

Corporations
Religious organizations
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What does Community Investment accomplish?

• There are four sectors of community impact.

• AFFORDABLE HOUSING
• build/rehab housing
• first mortgages
• training
• empowerment

• MICROENTERPRISE
• small cottage industries
• loans less than 25k US
• as little as 50 abroad
• peer lending and TA

• SMALL BUSINESS
• targeted populations
• assisted to start/expand businesses
• 25,000 and over

• COMMUNITY DEVELOPMENT
• important infrastructure
• non profits, daycares, clinics, cooperatives and
  environmental

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HIGH COMMUNITY IMPACT
Insured Not Insured
CDLFs
Community Investment Portfolios
CD Banks
CDCs
Credit Unions
MFIs
Market Risk/Return
Below Market
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Calvert Foundation has a portfolio of three
social enterprises
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Based on strong track-record, Calvert Foundation
is uniquely qualified to connect investors with
community non-profits.
M
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Community Investment ProfilesTM Online Database
Choose Geographic Impact
Choose between Social Impact Sectors
http//www.calvertfoundation.org
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Even stories and pictures of impact!
http//www.calvertfoundation.org
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SROI Calculator

• Data Collection- Survey Instrument
• Each year use survey instrument to collect key
  outcome indicators per organization data is
  self-reported by organization
• Relational Data-base
• Data points are entered into relational data-base
  so it can be sliced and diced
• SROI Calculator
• Investor can click on organization and sector and
  get average out-puts per invested
• Good SIMPLE Click and you get an answer

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SROI Calculator

• Not so Good Simple
• Focuses on very simplistic output measures
• Little rigor in terms of longitudinal or
  multi-variable outcomes or impacts
• US versus International Experience
• Concept of scale, sustainability largely absent
• Focus on grant funded projects, not institutions
  and/or sector building
• Far fewer resources
• JUST Now, US CDFI Industry beginning to tackle
  steps taken in the 80/90s -- MIS, common
  definitions, consistent data collection