Impact investing–the strategy of investing assets in an ethical or socially minded way–has evolved in recent years, shifting away from environmental, social, and governance (ESG) screens to local loan programs. That’s true here at Jewish Communal Fund, where we offer several Jewish impact investment options, including our JCF-HFLS social impact loan program. We also have a Guide to Jewish Impact Investing, which you can download here.
Here’s what Lev Gringauz wrote in today’s eJewishphilanthropy:
In New York, the Jewish Communal Fund lets donors recommend interest-free loans over a fixed term to the Hebrew Free Loan Society. Donors pay no administrative fees on funds that are loaned. The JCF loans are recycled on several levels: the money lent to the HFLS is given out as interest-free loans to low-income families or individuals, and when the money is repaid to the HFLS, it is loaned out again to those in need.
Once the term of the original JCF loan is up, the HFLS repays the donor’s DAF in full. That donor can then choose to give the loan to HFLS again, or use the money in another endeavor. Since the interest-free loan program launched in Nov. 2018, JCF donors have given out roughly $3.76 million.
“I consider that true impact investing,” said Rachel Schnoll, CEO of the JCF. “You are making a loan directly to a person in need…in impact investing, you are frequently sacrificing some investment return in favor of whatever impact that you can make.”
You can read the full article here: https://ejewishphilanthropy.com/impacting-investing-goes-more-mainstream-as-esg-strategies-change/