Invest to End Poverty

Community Investment.

Calvert Social Investment FoundationCalvert Social Investment FoundationShari Berenbach, Executive DirectorShari Berenbach, Executive Director

Where does Community Investing fit into Where does Community Investing fit into the broader responsible investment the broader responsible investment

picture? picture?

Shareholder Activism w/ companies

Screening publicly traded

stocks + bonds

Community InvestmentCommunity Investment

...in ...in peoplepeople!!

Calvert Calvert GroupGroup Calvert Calvert

FoundationFoundation Mutual fund company Mutual fund company

with $8 billion in assets with $8 billion in assets under managementunder management

15 Years ago launched 15 Years ago launched Socially Responsible Socially Responsible Investment Investment - social - social screens for publicly screens for publicly traded securitiestraded securities

In 1990 Calvert socially-In 1990 Calvert socially-screened mutual funds screened mutual funds elected to place 1-3% of elected to place 1-3% of total assets in total assets in community investments community investments ($13.5 million+)($13.5 million+)

Established Established Calvert Calvert Community Investments in Community Investments in 19951995: individuals/institutions : individuals/institutions invest soundly in global invest soundly in global pooled portfolio ($80 pooled portfolio ($80 million/assets)million/assets)

Creating community Creating community investment as a new asset investment as a new asset class in the financial services class in the financial services industryindustry

Developing information and Developing information and investor services for C.I.investor services for C.I.

Administers the Calvert Administers the Calvert Group’s 1-3% mutual fund Group’s 1-3% mutual fund allocation into C.I.allocation into C.I.

Repaid Repaid RepaidRepaid

Calvert Foundation adds value by reducing risk, Calvert Foundation adds value by reducing risk, providing transparency and professional providing transparency and professional

managementmanagement

Security enhancement Security enhancement Portfolio diversificationPortfolio diversification TransparencyTransparency PProfessional rofessional

managementmanagement

IndividualsIndividuals

FoundationsFoundations

CorporationsCorporations

Religiousorganizations

Religiousorganizations

Communitydevelopment

loanfunds

Communitydevelopment

loanfunds

Community development corporations

Community development corporations

Micro-financeinstitutions

Micro-financeinstitutions

Non-profit facilities /Coop’s

Non-profit facilities /Coop’s

Socialenterprises

Socialenterprises

Investmentdollars

Investmentdollars LoansLoans

INVESTORSINVESTORS BORROWERSBORROWERS

CalvertFoundatio

nReduces

Risk

What does Community Investment accomplish?

There are four sectors of community impact.

MICROENTERPRISE• small cottage industries• loans less than $25k US• as little as $50 abroad• peer lending and TA

SMALL BUSINESS• targeted populations

assisted to start/expand businesses

• $25,000 and over

COMMUNITY DEVELOPMENT• important infrastructure:

non profits, daycares, clinics, cooperatives and

environmental

AFFORDABLE HOUSING• build/rehab housing

• first mortgages• training &

empowerment

HIGH COMMUNITY IMPACT HIGH COMMUNITY IMPACT

CD BanksCD Banks

Credit UnionsCredit Unions

CDLFsCDLFs

CDCsCDCs

MFIsMFIs

‘Market’ Risk/Return ‘Below Market’

Insured Not Insured

Community

Investment

Portfolios

Calvert Foundation has a Calvert Foundation has a portfolio of three social portfolio of three social

enterprisesenterprisesSocial enterprises Statistics Description

CommunityInvestment Note("CIN")

1995 launch 1,500 investors Assets: $52mm +$8mm Subdebt

Low-risk, low-return security, availablenationally to individuals and institutions, usedto provide financing for communitydevelopment intermediaries on flexible terms

CommunityInvestmentPartners("CIP")

2000 launch 700 investors Assets: $20mm

Core capabilities on fee for service basis:– Due diligence and asset administration

services– Investor note administration on behalf of

other issuers– CIN-like securities registrations– Structuring and underwriting of

investments for direct investments fromfoundations and social investors

Calvert GivingFund("CGF")

2001 Falllaunch

100 donors Assets: $5mm

Donor advised fund offering mix ofsocially-responsible and communityinvestment options (e.g. CIN), andproviding web-based flexibility for givingand investing options

Based on strong track-record, Based on strong track-record, Calvert Foundation Calvert Foundation is uniquely qualified to is uniquely qualified to

connect investors with community non-connect investors with community non-profits.profits.

M

Community Investment ProfilesCommunity Investment ProfilesTMTM

Online Database Online Database

[ http://www.calvertfoundation.org ]

Choose between Social Impact

Sectors

Choose Geographic

Impact

A Long Journey

Bertha Sandoval Rivera is a living testament to the power of microlending. Twenty-six yearsago, Bertha made her living selling vegetables on a street corner. Because she had no cash, shehad to buy her produce on credit at inflated prices. By the time she had paid the supplier back atthe end of each day, she only had enough money to keep her family fed that night. “It was verysad,” she remembers.

Unlike many entrepreneurs who remain caught in that daily fight for survival, Bertha has beenable to move forward. Today, she has her own stand selling paper goods, snacks and other basicsin a popular market in the Lima neighborhood of San Juan de Miraflores. She also rents twoadditional stands, both of which are operated by her grown children. Bertha’s business assets –once zero – now add up to well over US$40,000.

Even stories and pictures of impact!

[ http://www.calvertfoundation.org ]

SROI CalculatorSROI Calculator

Data Collection- Survey InstrumentData Collection- Survey Instrument– Each year use survey instrument to collect key outcome Each year use survey instrument to collect key outcome

indicators per organization: indicators per organization: data is self-reported by data is self-reported by organizationorganization

Relational Data-baseRelational Data-base– Data points are entered into relational data-base so it can Data points are entered into relational data-base so it can

be sliced and dicedbe sliced and diced

SROI CalculatorSROI Calculator– Investor can click on organization and sector and get Investor can click on organization and sector and get

average out-puts per $ investedaverage out-puts per $ invested

Good: SIMPLE Good: SIMPLE Click and you get an answerClick and you get an answer

SROI CalculatorSROI Calculator

Not so Good: SimpleNot so Good: Simple– Focuses on very simplistic output measuresFocuses on very simplistic output measures– Little rigor in terms of longitudinal or multi-variable Little rigor in terms of longitudinal or multi-variable

outcomes or impactsoutcomes or impacts

US versus International ExperienceUS versus International Experience– Concept of scale, sustainability largely absentConcept of scale, sustainability largely absent– Focus on grant funded projects, not institutions and/or Focus on grant funded projects, not institutions and/or

sector buildingsector building– Far fewer resources Far fewer resources – JUST Now, US CDFI Industry beginning to tackle steps JUST Now, US CDFI Industry beginning to tackle steps

taken in the 80/90s -- MIS, common definitions, consistent taken in the 80/90s -- MIS, common definitions, consistent data collectiondata collection