1. Tools for Impact Developing the deal flow Santa Fe, New Mexico
October 21, 2015
Steve Dubb, Director of Special Projects and Senior Advisor to the President
Introduction

2. Strategies for Impact Investing

3. Strategies for Economic Development

4. The Cleveland Foundation Greater University Circle Initiative
1) Institutional Partnership
2) Physical Development
3) Economic Inclusion (Programs for People)
4) Community Engagement
(Connect)
Buy Local
Live Local
Hire Local
*Economic Inclusion sub-strategies

5. Evergreen Cooperatives

6. Greater Cincinnati Foundation Minority Business Accelerator
Launched after the shooting of Timothy Thomas in 2001 by Cincinnati police
Secured spending commitments from 40 corporations, nonprofits.
Created nearly 2,000 jobs.
Helped firms grow; average revenue now $29 million.
Set up $2 million loan fund.

7. Community Wealth Building Strategies
Rocky Mountain Farmers Union Urban Coop Development Center
Rocky Mountain Employee Ownership Center
Coop Professionals Conference
Researching possible creation of Coop Conversion Equity Fund
Community Campus Partnership with local anchor institution (focus engagement: jobs, procurement)

8. Types of Foundation Investment
Community
Types of Foundation Investment
: $500K total
Directed Grants
Responsive Grants
Consultant contracts
Learning Journeys
Community Wealth Building Conferences

9. An Innovative 30
Describe methodology, interviewing

10. Thank you! For more information: www.community-wealth.org
Steve Dubb
Director of Special Projects and Advisor to the President
Democracy Collaborative

11. Presentation for the 2015 NMAG Statewide Summit on Philanthropy
Local Impact Investing for Santa Fe Community Foundation: Why, How Does It Help Build Equity, What Now by Joohee Rand, Director of Strategic Initiatives, Santa Fe Community foundation
Presentation for the NMAG Statewide Summit on Philanthropy
October 21, 2015

12. WHY - Context
Growth in asset and focus on strategic use of assets to create impact
Expand the pool of capital available to address the community needs and fund social impact solutions; Recycle capital for sustainability
Community Leadership: leveraging role of Community Foundation as an anchor institution to influence change
Align investment with donors’ values and stay competitive / relevant

13. First Impact Investment (before launching formal Local Impact Investment Program)
Investment in the building as a “Philanthropy Hub” (August ) - $2.2M
Used for nonprofit technical assistance workshops, community convening, professional advisor programs, and donor programs.
3~5000 attendees in 100~200 community events and over Foundation programs annually
Network. Collaboration. Capacity building. Positions SFCF as a “Hub” and anchor institution with visibility

14. Santa Fe Community Foundation Local Impact Investing Initiative
In 2013, committed 5-10% of its pooled asset to local impact investing ($1.5~3M)
Start with investing in local intermediaries
Focus on regional impact (northern NM) aligned with Foundation’s mission/ends
6-7 year pilot with two years for placement of assets
$1M in four investments made so far ; Additional “conditional commitments” and several active deals in pipeline
Working with CDFIs
Direct local investing
(Conditional commitment in
Local grocery coop start-up)

15. Role of Impact Investing in Creating Equity for SFCF
Current Investments
Affordable housing, financial literacy, and financial security for low- moderate income families
Access to capital for low-moderate income, minority entrepreneurs
Low cost lending capital for nonprofits serving low-income families (e.g., quality, early childhood education)
Nonprofit capacity building
Potential Opportunities in Pipeline / Commitments
Quality, affordable medical treatment services with wraparound support for drug addiction
Rural economic development
Entrepreneurship Accelerator / Seed Fund
Access to capital and financial services for immigrant families (DACA/DAPA, affordable housing)
Deal-based. Not Strategic or Project – based Yet.

16. Our Challenges: What Would It Take to Broaden Impact Investment in NM for Greater Equity
Stronger intermediary system and capacity (e.g., social enterprises, coop, seed fund)
Stronger, quality deal pipeline
Broader pool of impact investors and collaboration across pipeline
Ability to integrate various capital to meet the whole needs of the project (e.g., risk capital, credit enhancement, grants, TA, research, partnership building)
“Buying”
Placing investment dollars in existing products
“Building”
Using money to create change that otherwise would not happen

17. What Now for SFCF. For NM Impact Investors (Current / Potential)?
Santa Fe Community Foundation
Potential statewide presence through “strategic consolidation” of three community foundations in NM (still in discussions)
Engaging donor advised fund holders and broader investor community
Building broader partnerships in the ecosystem
Integrating grant and other programmatic strategies
Early discussions for potential funder collaboration in building NM impact investing infrastructure
Funder Survey and Roundtable Discussion (September 16, 2015) - W.K. Kellogg Foundation / SFCF hosted with Avivar Capital – revealed interest and key areas for potential collaboration
Working Team to develop proposal exploring options and timeline
Responsive collaboration around deal pipeline, due diligence and investment (e.g., clearing house, pooled funds)
Proactive collaboration for education, field building and ecosystem development

18. Thank You

19. Discussion Questions
How do you see impact investing being a tool for your foundation’s work to create equity?

20. Discussion Questions
What role do you see your foundation playing in making community partners "deal ready" for impact investing?

21. Discussion Questions
What is needed for you to be able to take the next step with place-based impact investing?

22. Discussion Questions
How do you see impact investing being a tool for your foundation’s work to create equity?
What role do you see your foundation playing in making community partners "deal ready" for impact investing?
What is needed for you to be able to take the next step with place-based impact investing?