Individuals
“We feel that partnerships are about creating new human beings who share knowledge, share respect for each other, share in the outcomes of projects… We want people to participate in that effort – to share their interest, to share their resources.”
—Danny Glover – Co-Chair African Century Challenge
“I wanted to help South Africans in their struggle to regain control of their lives. Shared Interest seemed to be the perfect conduit. With their innovative approach to funding, I felt my little contributions could go a long way in making a difference.”
—Catherine Heron – Investor
“I decided to invest in Shared Interest because it puts the power in the hands of the people on the ground,” explained Meg O’Shaughnessy, a recent Shared Interest investor. In 2003, with information from her investment advisor, she made a loan to Shared Interest and joined Shared Interest’s 10th anniversary delegation in 2004. “On the trip, I realized that with our surplus, we investors are able to provide the missing link needed to get banks to take on the risk so that the people can improve their lives. With Shared Interest, the people who benefit identify their own priorities and address them in ways coming from their own cultures and communities. The people really own the projects.”
— Meg O’Shaughnessy – Investor
While individuals do not need to work through a financial professional to invest in Shared Interest, many do. Clients of socially responsible financial managers and advisors may need to make these professionals aware that their investment goals include not only risk and return parameters, but also a positive social impact in low-income communities at home and/or abroad. If you would like Shared Interest’s assistance in providing information to your financial manager or advisor, please do not hesitate to contact us.
Like other pooled loan funds, Shared Interest is not insured, but Shared Interest maintains a reserve fund to cover risk and Shared Interest has repaid all principal and interest that lenders have requested. Shared Interest lenders typically renew their loans when they mature, and contribute part of the interest they earn back to the organization. In so doing, they receive tax deductions as a result of Shared Interest’s charitable tax-exempt status.
Community investing is an important complement to other socially responsible investment strategies. The most popular of which are portfolio screening and shareholder advocacy. While investors may choose to use social and environmental criteria to screen their stock portfolios, select responsible mutual funds, or use their status as shareholders to engage in dialogues and vote their proxies to influence corporate behavior — community investing provides a means to put investments to work in building low-income communities – with interest.
A growing number of financial professionals are already connecting their clients to opportunities for community investment, which grew in the U.S. from $4 billion to $19.6 billion between 1995 and 2005. They are discovering that it is possible to obtain an acceptable rate of return with minimal to moderate risk, while receiving the satisfaction of providing homes, childcare centers, businesses and jobs in underserved areas. The Social Investment Forum is currently coordinating a national campaign for socially responsible individuals and institutions to place “One Percent in Community” investments, and encouraging financial professionals to learn more about community development banks, credit unions, venture capital funds and loan as well as funds such as Shared Interest.
For additional materials about community investing, please contact the Social Investment Forum at www.socialinvest.org.
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