Introducing the CommunityFirst Pool
Impact investing is one of the hottest topics in the financial world. The ability to generate a double bottom line – social impact and a financial return – is an extremely attractive option to those seeking real intentionality with their investments. And now MCF has a new impact investing opportunity for your consideration if you’re interested in creating double the impact with your assets.
As you may know, the MCF Loan Fund provides financing options to nonprofits in Marin that may not be able to access or afford traditional commercial debt. Donors can invest a portion of their fund’s assets into the MCF Loan Fund Investment Pool, support local community efforts, and simultaneously earn a modest rate of return.
Commencing September 5th, we have implemented changes to make this investment option even more compelling. Those changes are as follows:
- investments in the Loan Fund Investment Pool, currently requiring 1 – 4-year term commitments, will become as liquid as other investment pool options.
- the potential loan loss risk that donors currently assume will be removed.
- a lower interest rate – 0.25% over the rate paid on the PIMCO Government Money Market Fund – will be offered, reflecting the Pool’s increased liquidity and lower risk. While lower, it will nevertheless compare favorably to other money market investment options.
- total participation in the Pool will be capped – at least initially - at $7 million, to ensure the most efficient use of funds.
- there is no investment fee associated with this option.
This investment option will now be known as the CommunityFirst Pool. It provides an effective option for those seeking the liquidity and low risk of a money market investment, with guaranteed higher returns, combined with the opportunity to engage in local impact investing on a variety of projects such as affordable housing, workforce training and children’s centers. The anticipated additional borrowing capacity that this change brings will also allow for a greater volume of loans to be made, benefitting more local nonprofits in need of long-term funding.
If you’re interested in participating in the CommunityFirst Pool, simply log in to the MCF Giving Center and change your investment allocation here. Or if you’d like more information, contact your philanthropic advisor.
Finally, if you’d like to understand some of the great projects that the Loan Fund has supported throughout the years, you can check out case studies here.