(Inspired by the Social Capital Index located here on xigi.net, two analysts are posting their take on the enterprises listed in Deals in Play. Deals in Play is a new feature of the Social Capital Index that lists social ventures actively seeking capital. Following is Andrea McGrath’s analysis of one of these enterprises.)
JEWISH COMMUNITY INVESTMENT INITIATIVE
By Andrea McGrath
The Jewish Funds for Justice are offering a new investment opportunity - specifically looking to increase the participation of the American Jewish community in community investment notes. The JFSJ Community Investment Initiative is being launched in partnership with the Calvert Foundation and allows individuals to purchase notes of $1,000 or more. Investors have choices ranging from the structure (rates of return ranging from 0% to 3% and a loan period from 1 and 10 years) to the target investments (the can direct investments in 1 of 8 regions in the US themselves or let the Calvert Foundation allocate their funds).
This appears to be a good investment on multiple levels: a low minimum investment threshold to attract diverse funding base and a solid investment partnership - with the Calvert Foundation bringing its expertise and experience in community investment notes and the Jewish Funds for Justice bringing its education and advocacy skills. It also brings a potentially strong new market to community investment with its own membership and with the larger American Jewish community.
Dialogue Questions
The JCF raises interesting questions (possibilities) on:
potential alternative channels to grow community investments
opportunity to learn from partnering with an advocacy/membership organization - and particularly a faith based and/or culturally rooted organizations as a way to build awareness of alternative investments and CDFIs (and increase capital)
Social Impact
Increased community development capital
Increased awareness of alternative investments (such as structured notes)
New insight on effective partnerships to educate and advocate socially responsible investments
