Impact Investing
Waterloo Region Community Foundation (WRCF) invests in market investments to both grow our assets and ensure we will have funds to support our community in perpetuity. One of the strategies WRCF has embraced to increase our reach is Impact Investing. The Board has approved deploying up to 10% of WRCF’s investment portfolio to impact investments. We are also working toward a Responsible Investing Portfolio that is 100% mission aligned.
Through successful investing, with 10% of WRCF’s current investment portfolio committed to impact investments and an annual 5% grant distribution based on the total capital invested in endowment funds, WRCF is more than tripling its impact by deploying 15% of its endowment toward its philanthropic goals.
What is an impact investment?
Impact investing occurs when investments are made into companies, organizations, or funds with the intention to generate social or environmental impact alongside a financial return. Investments can be made across asset classes, including but not limited to loans, fixed income, venture capital, and public or private equity. Organizations receiving investment must measure and report the social or environmental performance of the impact investment.
Why impact investments?
Impact investments have the ability to complement grantmaking to drive greater impact! They can also be a tool to stimulate private-sector innovation and collaboration, encourage market-driven solutions and efficiencies, and attract external capital to charities, non-profits, and other social purpose businesses.
Does Impact Investing affect WRCF’s grantmaking?
WRCF has historically worked to make a lasting difference through our investments in the community via our granting. Funds disbursed through the grant streams have always come from positive investment returns on the endowed capital that WRCF has been entrusted to preserve.
Impact investments take a different approach whereby a portion of the endowed capital is deployed into the community in order to drive social and/or environmental good. Charitable organizations, and other qualified donees, that participate in impact investment opportunities are still able and encouraged to apply for funding from WRCF’s granting streams.
How can our organization apply?
WRCF is always accepting applications for Impact Investments. If you are interested in applying for an impact investment, fill out the Pre-Screen Application to help us learn a bit more about your project or initiative. We will then reach out to you with questions, and invite you to submit a full application.
Additional information
The practice of Impact Investing is defined by four characteristics:
Intentionality – Investors must intend to have a positive social and/or environmental impact.
Return expectation – Investors understand there is a market return and a social return.
Range of asset classes – Investments can be made across asset classes, including but not limited to loans, fixed income, venture capital, and public or private equity.
Impact measurement – Organizations receiving investment must measure and report the social and/or environmental performance of its impact investments.
WRCF is always open to receiving applications that demonstrate strong positive social and/or environmental impact.
Investment criteria for WRCF’s impact investments:
Geographic focus – Investments where impact accrues directly to Waterloo Region are preferred.
Term – Generally no more than five years.
Return – Subject to discussion and would be based on each project.
Organizations – Open to both non-profits and social enterprises that demonstrate strong positive social and/or environmental impact.
Instruments – A range of asset classes, including but not limited to: loans, mortgages, promissory notes, community bonds, and social impact bonds.
Find out more:
If you are interested in applying for an impact investment, visit www.wrcf.ca/impact-investing, and submit your request through WRCF’s Impact Investment Pre-Screen Application.
If you want to learn more about partnering with WRCF to make impact investments, contact John Bowden at john@wrcf.ca or 519-725-1806 x 202.
Affordable Housing GIC and Loan are available through Kindred Credit Union
People across Waterloo Region are asking, “How can I help with the affordable housing crisis in our community?” Kindred’s Affordable Housing Guaranteed Investment Certificate (GIC) is open to all investors with a minimum of $500 required. You’ll earn a competitive interest rate while supporting lending for long-term, owned or rented permanent affordable housing for residents of Waterloo Region.
As a pool of deposits is built up, Kindred will work with WRCF to assess potential affordable housing providers to support lending for long-term, owned or rented permanent affordable housing projects. Then, loans are provided through Kindred from the GIC deposit funds to impactful housing projects.
Visit the affordable housing GIC page on Kindred’s website to learn more and get started. If you are an organization that is developing long-term, owned or rented permanent affordable housing, complete the pre-application form located above.
Impact Investing in Action - Community-based Bond Case Study
House of Friendship successfully raised $1 Million in investment capital from Waterloo Region community-based investors by issuing a community-based bond in 2018-2019 to provide expanded addiction treatment in Waterloo Region. Our Foundation funded the work required to structure and raise the capital and acted as lead investor. Social Venture Connexion and MaRS Centre for Impact Investing (MaRS) provided expertise in structuring community-based bonds and Miller Thomson provided legal counsel throughout. The end to end process took 11 months. Access the case study here.
Here is a list of our current impact investees
10C Shared Space
House of Friendship
Indwell Community Homes
The Knossos Housing Corporation of Waterloo Region
MennoHomes Inc.
StandUp Ventures II LP
Supportive Housing of Waterloo
Union: Sustainable Development Co-operative
Windmill Microlending
The Working Centre