The Capacities Foundations Need to Embark on Place-Based Impact Investing
by Teri Lovelace, President, LOCUS Impact Investing
Place-based impact investing is sparking community development projects that create more just, equitable local economies, and build prosperous, vibrant communities. Place-focused foundations, like community foundations and family foundations are exploring ways to complement their traditional grant-making with local investments that can catalyze positive community change.
Through our work, we’ve observed a pattern to this place-based impact investing journey that we have incorporated into our fundamentals for designing and implementing an effective place-based impact investment strategy. These fundamentals include exploring a foundation’s place, opportunities and capacities for local impact investing; unlocking a foundation’s assets for this type of investing, ensuring the right ecosystem partners are aligned and the internal policies and processes are in place; and smartly deploying investment dollars to enhance mission while also mitigating risk. While this seems like a linear path, it is really an iterative journey.