Lately, many family foundation members have asked me about the best way to get started in impact investing.
An easy, no-risk way to start is to park your investable cash (up to $250,000 is federally insured) in a “do good” bank. Be careful though, some banks claim to do good, but they don’t.
You need to find an “It’s a Wonderful Life” bank, the kind that accepts deposits and invests the money in the local community. Avoid a bank that functions as a huge vacuum cleaner, sucking up community members’ assets and sending the money to Wall Street.
If you’re not sure if your local bank qualifies as a “do good” bank, contact the National Community Investment Fund (NCIF) to see how your bank rates.
Or, try one of the 11 Minnesota banks that meet NCIF social-impact standards. For example, the locally owned and operated Sunrise Community Banks is a B-corp and community development financial institution (CDFI) that caters to diverse urban customers and lends to them as well. This video says it all.
Full disclosure, I’m such a fan that I serve on the Sunrise Community Advisory Board. Sunrise Banks is also an MCF member.
I would love to hear how you got started in impact investing. Tweet or email me your story.
“Silence in the face of evil is itself evil: God will not hold us guiltless. Not to speak is to speak. Not to act is to act.”― Dietrich Bonhoeffer
This powerful quote is how Minnesota’s Attorney General Keith Ellison opened his keynote address at the Minnesota Council on Foundations annual conference last month. As Americans, we stand for individual freedom, the right to pursue happiness, and the dignity of each person. These fundamental values are under assault. We need to muster our courage and act. Perhaps it’s reaching out to a friend with disabilities who is worried about funding cuts. Maybe it’s shopping and dining at non-traditional places and restaurants such as those found on Lake Street in Minneapolis. Or maybe it’s running for public office so we’ll have better leadership choices. Let me know what actions you’re taking in these fraught times.
Leave a Reply