Coffee producers and personnel from our portfolio partner Sustainable Harvest inspect green coffee beans in Peru

At Calvert Foundation, we envision a future where it is possible for all investors to be impact investors. We believe that empowering “everyday people” to invest in their own communities is a key step in ensuring a resilient and sustainable economic future. With the substantial decrease in state and local budgets since 2008 and the recent federal budget sequestration, reduced public spending is a reality in the foreseeable future. Other traditional sources of capital for community development including lending from banks motivated by the Community Reinvestment Act and grant dollars from private foundations are also increasingly scarce. These trends contribute to an uncertain environment, leaving the social sector with tough questions to answer. Where will local community organizations turn to fulfill their financing needs? How will we protect the commitments we’ve made as a society to build strong communities with equitable access to education, housing, healthcare, credit, and most importantly, opportunity?

Calvert Foundation makes it easy for individuals who want to invest in their own communities through initiatives focused on women’s  empowerment and place-based efforts, so that anyone can participate in the economic recovery. In contrast to other sources of funding, which are subject to bureaucratic and unpredictable decision making, these diversified pools of private capital from individual investors are much more “sticky.” They are less likely to diminish quickly at the whim of one decision-making body. There is no replacement for public funding, corporate philanthropy, and private grant making, which are all critical to the sustainability of the social sector; but as a society we must think creatively about other mechanisms to augment and leverage these traditional sources of funding.

Calvert Foundation connects private sources of capital to Community Development Financial Institutions (CDFIs) that provide a range of financing options for small businesses, childcare centers, healthy food retailers, community healthcare clinics, charter schools, and affordable housing providers – the core elements of stable communities. With the prospect of reduced public funding for traditional nonprofits and direct services organizations, CDFIs remain well positioned based on their ability to attract private capital. To date, our investors and supporters have helped us build or rehabilitate over 17,000 homes, create 430,000 jobs in the U.S. and in developing countries, and finance over 25,000 cooperatives, social enterprises and community facilities.

Last year, in partnership with several organizations, we identified a $650 billion market opportunity for financial advisors and investors to invest for impact in a research study entitled Gateways to Impact. Impact investing presents an opportunity to build a financial future for low-income communities that is far less reliant on variable funding sources. But, there remains a great deal of work to be done in building the infrastructure to realize this opportunity. Among other things, we need to improve our ability to evaluate social impact, build more reliable distribution channels for impact products, and establish more of a track record.

Calvert Foundation has a unique role to play in connecting CDFIs to sources of private capital. Through our Community Investment Note, people can invest in our loan portfolio which directly supports CDFIs and other high impact organizations across the United States. Over the years we’ve built new partnerships that have allowed us to create a more inclusive approach to impact investing. Our partnership with Incapital has enabled us to offer our Community Investment Notes through traditional brokerage platforms, resulting in more than $175 million in new investments to benefit community development organizations across the United States. Through our collaboration with MicroPlace, we’ve reduced transaction costs and lowered our minimum investment to just $20 online, making impact investing a possibility for millions of people who never would have considered it before.

The $650 billion impact investing market can help to improve low income communities and reduce the social sector’s reliance on unpredictable funding sources. To be sure, accessing capital at this scale will require further financial innovation, collaboration, and efficiency in impact investing markets. And, while we recognize that private capital will never be a perfect substitute for public funding, the prospect of a mature impact investing industry is transformative – for investors, for the nonprofit community, and for government. Laying the groundwork for access to private capital at scale will mitigate the long term risks posed to our vulnerable communities by financial uncertainty and market volatility.

Lately, we’ve been doing a lot of thinking, writing, and speaking about why it’s important to democratize impact investing. Not only does impact investing present a huge opportunity for the social sector to benefit from new sources of capital, but it also empowers everyday people to participate in our national economic recovery. So, we’re always excited when we see other participatory models gaining momentum.

Solar Mosaic is one particularly good example. Solar Mosaic lets individuals crowdfund renewable energy growth by investing in solar energy projects. The funding enables projects to become a reality, and as the projects gain momentum and earn revenue, the investors are paid back with interest.

Crowdfunding solar projects is a great entry point for individuals to become impact investors. As Solar Mosaic explains, the solar sector is poised for growth. The cost of solar energy per watt has decreased dramatically in the past three decades, advances in technology have made capturing and harvesting solar energy more efficient, and consumers are becoming increasingly more conscious about supporting clean energy. Small investments by individuals can make a big difference in supporting and enabling the growth of promising new solar energy projects within a community.

In this video, Founder and President Billy Parish explains the Solar Mosaic vision to promote clean energy abundance for and by the people.

We look forward to sharing other examples of impact investing for “the people.” It’s important that we continue to demystify the myth that impact investing is an activity reserved only for high net worth individuals and institutional investors. If you have other examples of interesting opportunities for individuals to get involved in impact investing, please share with us in the comments or on Twitter at @calvert_fdn and compile and re-share here on the blog.

Calvert Foundation staff lead financial advisors on a tour of redeveloped homes in New Orleans in 2012

At Calvert Foundation we are committed to “democratizing” the field of impact investing. We believe that by creating easy ways for individuals to invest according to their values, we’re helping to build a broader movement.

This movement has implications for large institutional investors like university endowments and pension funds, as well. As individuals take steps to become impact investors themselves, they are more likely to put pressure on the institutions they belong to, represent, work for, and support to also think critically about the impact of their investment portfolios. We are seeing examples of this today with the student movement 350.org and the decision of Calstrs to divest from all firearms holdings in the wake of the Sandy Hook incident.

Recently we were interviewed by Financial Advisor Magazine about our role in bringing “easy-to-use” impact investing tools to financial advisors and their clients. Among financial advisors, we are often seen as a natural first step for investors looking to dip their toes into the world of impact investing. Over the years, we’ve seen many advisors and their clients begin with a small investment in a Community Investment Note, and graduate to targeted portfolios supporting the causes most important to them.

We’re proud to provide that bridge from impact investing “toe-dipper” to impact investing extraordinaire. We hope you’ll take a moment to read the article in Financial Advisor Magazine, and share with us any thoughts on your own personal journey in impact investing.

Here we take you from the launch of WIN-WIN, to its six month update, through to some stories of how your investments are creating opportunities for women.

WIN-WIN Launch

WIN-WIN at Three Months

WIN-WIN at Six Months

WIN-WIN Girl’s INC. Feature

WIN-WIN Mother’s Day Tribute

“Today over 2.5 million people breathe healthier air, spend less time and money on cooking fuel, place a smaller demand on their forests, and emit less greenhouse gases.”

Why, you ask? Meet Calvert Foundation partner Envirofit – a producer and distributor of clean cook stoves and solar lighting products for impoverished communities in developing countries. The clean cook stove has been recognized as a breakthough innovation by leading global institutions focused on reducing carbon emissions and promoting better health outcomes in developing countries. Take a peek at the video below to hear from Jayne Kabura, the Director of St. Pauls Orphanage in Karen, Kenya on how clean cook stoves have benefited their community.

Envirofit’s holistic approach contributes to improved public health, environmental sustainability, and job creation through the design and distribution products that are in high demand in poor communities. We are incredibly proud to be supporting such an inventive organization. On behalf of the thousands of investors in our Community Investment Note, last month we invested an additional $1 million to help Envirofit grow their footprint and impact, bringing our total investment to $2.5 million.

Please join us in celebrating this tremendous organization and learn more about their approach and impact here. They also have a great YouTube channel, which they use to host video tutorials on how to operate the stoves (like the one below).

To learn more about the global impact of clean cook stoves check out the Global Alliance for Clean Cook Stoves, an initiative of the United Nations Foundation.

Whether it’s finding new opportunities to engage directly with mission-driven organizations, or finding new ways to support them financially through impact investing vehicles, the report highlights the growing desire of individuals to become better connected to communities they care about. We’re glad to be one part of a larger ecosystem that is making these new kinds of connections possible.

Calvert Foundation staff working in a planning session

President and CEO Lisa Hall was appointed by President Obama to the Treasury’s Community Development Advisory Board. She will join other distinguished community development professionals in support of the CDFI Fund’s mission to economically empower America’s underserved and distressed communities.

Jenn Pryce, Calvert Foundation’s Chief Strategy Officer, was recently elected to the Hitachi Foundation Board of Directors. Jenn will serve a four-year term at Hitachi Foundation, helping them discover and expand business practices that create tangible, enduring economic opportunities for low-wealth Americans, their families, and the communities in which they reside.

Jenn also took a spot on the Groundswell Advisory Board. Formerly a Calvert Foundation portfolio partner called DC project, Groundswell works to make clean energy affordable by harnessing the collective purchasing power of neighborhood associations, faith institutions, and membership groups with interest in clean energy upgrades.

Sr. Director of Investment Partnerships Justin Conway was elected to the Board of US SIF: The Forum for Sustainable and Responsible Investment by its membership of financial professionals. This is reflective of his contributions to the sector over a number of years and the high regard in which he is held within the impact investing community. US SIF is an important partner of ours and a leader in raising awareness of impact investing with the broader investment community.

Congrats to Margot Kane, Director of Strategic Initiatives, for being chosen as a fellow for the Funders’ Network’s PLACES (Professionals Learning About Community, Equity and Smart Growth) Initiative. PLACES is a year-long fellowship program that offers tools, knowledge, and best practices to enhance funder grant making decisions in ways that are responsive to the needs and assets of low-income neighborhoods and communities of color.

This conference provided a bridge for the traditional financial and philanthropic communities to better understand their relationship to one another. As impact investing continues to grow, opportunities abound for advisors to work across the investment spectrum to achieve returns and impact simultaneously. At Calvert Foundation, we’re in the midst of laying the groundwork for new targeted investment initiatives like WIN-WIN. This will require collaboration between our partners in the investment and philanthropic communities, and ultimately provide new value for clients in both communities. We look forward to building dynamic partnerships in order to realize this vision for a more mature impact investing ecosystem.

Lisa Hall presents at the Clinton Global Initiative

A quick note that our friends at Blended Profit will be interviewing Calvert Foundation President and CEO Lisa Hall LIVE this Tuesday January 29th at 8pm EST on Google+.

At 8pm EST, Blended Profit will broadcast the interview live on its website, where you will be able to engage with Lisa in real time. They will be taking questions on Twitter with the hashtag #GAMECHANGERS.

Tweet this to your followers!

Tonight at 8pm EST: Live @blendedprofit #GAMECHANGERS interview with @calvert_fdn CEO @LisaGreenHall http://tinyurl.com/b2u69xh #impinv

Our first experiment in this work was launched last year with the creation of the Women Investing in Women Initiative (WINWIN). We recognized the important and growing role of women as catalysts in global and local economies, and we set out to create an investment opportunity that would serve and empower women entrepreneurs around the world. Since March of last year, we’ve raised and deployed nearly $10 million in support of this effort – a demonstration of the power of bridge-building and connecting investors to communities they care about. Below is a short talk at TEDxWhitehallWomen from Suzanne Biegel, an early and steadfast supporter of WINWIN. Among other things, she explores her own journey as an impact investor, and she examines the deepened perspective that benefits us all when we build a more inclusive investment community. Suzanne speaks in the true spirit of WINWIN. We couldn’t have said it better ourselves.