What is Impact Investing?
Investors around the world are increasingly directing their capital to “do good”— in both emerging and developed markets, across sectors ranging from sustainable agriculture to affordable housing. Impact investments yield intended, measurable, positive environmental and social change alongside a financial return, and attract investors ranging from individuals to large firms.
In many cases, communities have already cracked the code on how to support neighbors in need. The challenge lies in raising the capital. Fundraising steals hours from providing desperately needed services. Traditional funding is inflexible when it comes to addressing the essential needs of these organizations, let alone offering a safety net to both the nonprofit and the people they are trying to serve. Even when nonprofits are successful in raising awareness and funds, there is rarely enough to support their work at scale.
To compound this issue, citizens and entrepreneurs in marginalized communities lack access to fair and adequate investments. This prevents the opportunity to build businesses and limits access to job training, education, and home ownership, all which build generational wealth—a vicious cycle that is at the heart of social inequities. Social impact investing surmounts these challenges by merging a philanthropic mission with traditional investment vehicles to achieve community impact. Combined with our localized, data-driven approach, CFC can provide fund managers and investors with a better understanding of neighbors and neighborhoods, and the best chance they have for success.
Our Investment Philosophy
In contrast to many social impact products out there, Collective Ventures’ structure uses a straightforward investment approach at a hyper-local level to bring real, tangible change to neighborhoods across the Cape Fear area. You’ll see your investments driving impact across our community on your commute to work, in your child’s school, and through your favorite nonprofit organizations. Our six-pillar approach derisks your investment while demonstrating this visible, sustainable impact:
Data Driven
Grounded in the Healthy NC 2030 Indicators, our expert team of data scientists leverages decades of private sector, academic, and consulting experience to crunch the numbers and show where your investments can have the best ROI with the highest amount of community impact.
Human Centered Approach
Using existing nonprofit client pipelines and extensive case management, programs are designed to set people up for success and ensure promised ROIs to investors. We stay involved throughout the process to make sure that these community interventions stick.
Strong Governance & Advising
We were born out of the financial industry and we lean on institutional partners like Live Oak Bank to support our innovation. In turn, they demonstrate their commitment to our mission through their advice and their funding. Our investment advisory board ensures our portfolio is well managed.
Strong Nonprofit Partnerships
We’re not in this alone. The wealth of experience across our region’s nonprofit sector has been making a difference in this community for decades. Our investments allow those nonprofits to unlock the capital they need to scale programs that work.
Portfolio Diversification & Economic Resiliency
Housing, jobs, transportation and many other factors influence a community’s ability to make inclusive forward progress. Each sector has
its own unique challenges. Our holistic approach creates a diversified portfolio of opportunities that provide a systemic solution to community development.
Communication & Transparency
As a nonprofit, transparency, and consistent communication with our partners and our investors is a priority. We send regular updates on how your investment is performing, how we’re putting it to work in our community, and the generational change its creating.
How do CFC investments stack up against other options?
CFC Impact Opportunities |
Traditional Savings Account |
Certified Deposit (CD) |
Treasury Securities |
|
|---|---|---|---|---|
Average ROI |
2% – 5% | 0.05% | 0.24% – 0.41% | 1% – 2% |
Time Duration |
Low to Moderate: 3 – 6 years | N/A | Low: 1 – 5 years | High: 10+ years |
Local Impact |
High | None | None | None |
Ready to invest or want to learn more?
Social impact investing through Collective Ventures is a way to make meaningful impact right here at home, while redeeming your investment with competitive returns in a reasonable time period. Our data-driven approach provides evidential data to track the community outcomes you’re enabling through your investment. Most importantly, your investment will change the lives of your neighbors. Contact us today for more information.
