Social good and profit can go hand-in-hand. By leveraging Impact Investing strategies, philanthropy and market-based solutions work together to address our region’s most pressing social challenges.
The San Diego Foundation is committed to adopting new, innovative philanthropic strategies like Impact Investing to add to our portfolio of services to provide value to our donors and social impact for community.
What is Impact Investing?
Impact Investing is the practice of investing into funds, organizations and companies with the intention of generating measurable social and environmental impact alongside a financial return. Benefits include supporting sustainable community development; recycling philanthropic dollars back into the community to address community needs, mitigating investment risk and maximizing impact.
Impact investors include foundations, health systems, banks, pension funds, insurance companies, faith-based organizations, corporations, wealth managers and individuals.
How Can I Participate?
After researching community need, identifying opportunities to leverage funding, and educating donors about how Impact Investing works, we have established opportunities for donors of The San Diego Foundation through:
- Impact Loan Fund
A revolving loan fund will primarily focus on taking out high interest rate loans to reduce debt service for impactful nonprofit organizations serving community needs. Interest rates are expected to be below 3%. Returns will be reinvested in the Fund.
- Donor-Advised Fund (DAF) Co-Investing
As we source, diligence, and select various opportunities, donors have the opportunity to invest alongside The San Diego Foundation on potentially favorable terms and with the return of capital to your DAF for new impact investing opportunities.
Frequently Asked Questions
Is there a minimum amount to contribute to a fund?
We are seeking investments of $100,000 or more to ultimately raise fund balances between $5 million to $10 million.
Will investors vote on how the funds are deployed?
Investors will not vote on fund deployment, but will be engaged throughout the program timeline with updates, presentations, site visits and evaluation of the impact.
Are investments returned when loans are repaid/PFS funds are returned?
No. Loans are self-perpetuating, so funds are recycled to provide opportunities to assist with future debt reduction needs and community specific programs.
Will my investment be recognized the same way as a gift/grant?
If funding goals are not met for programs, will you return my investment to my fund?
Yes, funds are transferred only when funding goals are achieved.
How do I propose a program to be considered for funding?
We are currently defining a formal intake process so investors can share their proposals.