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.