Calvert Giving Fund
Financial Planning
July 24, 2008
Investors Can Add Habitat for Humanity to Portfolios
By Colleen O'Connor-Grant
Socially responsible investing just moved to a whole other level as the Calvert Social Investment Forum launched the Habitat for Humanity Investment Program in late July.
Through the program, individual investors can invest in a fund that directly benefits Habitat for Humanity, an organization which strives to create affordable housing.
The program involves the sale of notes, available in $1,000 increments, in one, three, five, seven or 10-year maturities. The notes carry an interest of up to two percent. The full value of the principal is then loaned to Habitat for Humanity.
When the notes reach maturity, investors can simply collect the principal and interest, or reinvest the funds. The interest can also be donated to Habitat for Humanity, creating a tax deduction.
This method gives the charity access to low-cost capital, which can be deployed to build homes at a faster rate, subsequently serving more families in need of homes.
How many homes could a socially responsible investor help to create? Consider that over the last 12 years, the Calvert Foundation has helped to build more than 12,500 homes through its Community Investment Note program, which raised more than $140 million during that time, the foundation said.
As for the demand for its services, Habitat for Humanity has built more than 250,000 homes worldwide since 1976.
Notes of $1,000 or more can be purchased through a financial advisor or through the Calvert Foundation site. Also, $100 notes are available online at Microplace.
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