AAACF Vision for Impact Investing
With a focus on racial and social equity, all neighborhoods and communities in Washtenaw County have the same opportunity for generational human dignity with equitable access to our collective community wealth.
What is Impact Investing?
Impact investing refers to the practice of investing in community projects that are intended to generate a financial return as well as a tangible social or community benefit. Unlike grants, investments are intended to be repaid to the Community Foundation and can be “recycled” back into the community through additional investments.
- Mission-related investments seek to generate a measurable beneficial social or environmental impact alongside a market-rate financial return. These investments are generally made in for-profit social enterprises as part of a mission-aligned investment portfolio or strategy.
- Program-related investments or “PRIs” are defined by the IRS as an investment in which the primary purpose is to significantly further a charitable purpose. The recipient of a PRI may be a nonprofit or for-profit social enterprise. Unlike a mission-related investment, PRIs are not expected to produce market-rate returns.