Investing for more means making focused, carefully selected investments in companies, organizations, and funds with the intention of generating a measurable, beneficial social impact in our Baltimore region, as well as a financial return.

 

 

How Does It Work?

BCF is committing up to four percent of its invested assets to an investment pool dedicated to local impact. BCF invests for local impact through intermediaries in a variety of instruments that directly support economic growth and human capital in the Baltimore region. For example: one of BCF’s first local impact investments went to Enterprise Community Partners to support development of multifamily affordable housing in Baltimore.

Local impact investments are expected to yield a double bottom line: an expected overall financial return of about 3% as well as a social return through the projects supported.

BCF invites you to join us in investing for local impact. 



How YOU Can Invest for More

Achieving local impact as well as financial return

Do you have a donor-advised fund at BCF?

You may commit a portion of your non-endowed donor-advised fund for a period of seven years for local impact investments. Funds with assets greater than $50,000 may commit up to 75%; funds with assets less than $50,000 may commit up to 20%. 

During the seven years, these assets will not be available for grantmaking, but will provide a financial return to your donor-advised fund as well as local impact through the projects supported by BCF’s local impact investments. At the end of seven years, you may choose to renew your commitment for another seven years, or have the assets returned to your fund to be used for grants that you recommend. Administrative fees will continue to be calculated on your Fund’s total assets including those committed to local impact investments.

If your donor-advised fund is endowed, your fund is fully invested in the BCF Pool, a portion of which is committed to local impact investments. Because of rules governing investment of endowments* your endowed donor-advised fund may not make an additional commitment to local impact investments. 

*UPMIFA (the Uniform Prudent Management of Institutional Funds Act) requires that BCF invest endowed funds in a diversified portfolio, such as the BCF Pool, designed to maintain value over time.


You don’t have to be a fundholder to help!

Help us Invest for More by making a donation of any size. Your gift to the Invest for More Fund will permanently increase the money available for BCF’s local impact investments, and we will report regularly on the projects made possible by your generosity.


Q&A



Will investment returns be affected?

There will be little or no effect on investment returns in the BCF Pool. BCF will commit up to 4% of assets currently invested in the "fixed assets" class in the BCF Pool to local impact investments, and anticipates returns that are competitive with fixed income investments. Our financial goal for local impact investments is a blended return of 3%.

What kind of local impact does BCF expect to see?

We will identify investments focused on Baltimore City and County. Local impact investments may include, for instance, small business lending, affordable housing, healthy food access, workforce development or education.

Who is choosing the investments?

The Impact Investing Subcommittee of the Investment Committee will explore opportunities for local impact investments and make recommendations to the Investment Committee, which will make final decisions on investments. BCF staff and consultants will assist with performing due diligence on the investment opportunities.

What kind of oversight will there be on the local impact investments?

BCF intends to invest with Community Development Financial Institution (CDFI) intermediaries who have a strong track record of working with borrowers. Therefore, there will be two layers of oversight of the local impact investments. Individual investments will receive oversight from the CDFI intermediaries who make the investments. BCF’s Investment Committee will regularly review performance data from those intermediaries.

Who else is using local or other forms of impact investing, and what have the results been like?

Impact investing is becoming common both for community foundations across the U.S. and for private foundations in Baltimore and elsewhere. According to the Global Impact Investing Network (GIIN), impact investments are growing rapidly and represented $114 billion in capital in 2016. Nationally, community development financial institutions, BCF’s likely partners, have a successful 30-year history of doing this work—during that time, they have created more than one million jobs, more than 1.5 million housing units, and 192,000 businesses. In 2015, CDFIs provided at least $5 billion in capital to low income individuals and communities. Their financial results were on par with mainstream financial institutions.

What is the role of the Subcommittee?

The Subcommittee will recommend investments to the Investment Committee, monitor the overall liquidity of the investments with respect to BCF’s needs, and provide overall direction. BCF’s Investment Committee will make all final decisions on local impact investments.

Investment Committee

Patricia P. Baum
RBC Wealth Management, Baum Jackson Investment Group
Patricia P. Baum

RBC Wealth Management, Baum Jackson Investment Group

Trustee since 2014

Committees: Investment (Chair); Executive; Retirement Plan (Co-Chair)

 

Patti has been a financial advisor and wealth manager with RBC Wealth Management since 1998. She began her career in 1985 as a Financial Advisor with Alex. Brown & Sons. Patti is part of RBC’s Private Wealth Group, a select group of advisors serving high net worth individuals and institutions. She is a member of the firm’s Senior Consulting Group, and has been consistently named to the firm’s Chairman’s Council, membership which is offered to the top 150 advisors. The Baum Jackson Investment Group was selected as one of Barron's Top Advisory Teams in 2010, 2011, 2012 and 2013. Patti was named to the Financial Times Top 400 Advisors in 2013, 2014, 2015, 2016 and 2017. In addition, Patti was named to the inaugural Top 100 Women Financial Advisors list in 2014. Patti earned a Bachelors Degree from Duke University in 1978, graduating summa cum laude, and earning membership to the Phi Beta Kappa honorary society. In 1991, she graduated from the Wharton School Securities Industry Institute program. In addition, she has completed the US SIF Foundation Course: Fundamentals of Sustainable and Responsible Investment from the Center for Sustainable Investment Education.

 


George L. Bunting Jr
Blue Jar Private Trust Company
George L. Bunting

Blue Jar Private Trust Company

Trustee since 1994


Committees: Investment
Cheryl A. Mickel
T. Rowe Price Associates
Cheryl A. Mickel
Charles A. Morris
Greenhouse Funds
Charles A. Morris
K. Brigid Peterson
Brown Advisory
K. Brigid Peterson
Brigid Peterson is an Endowments and Foundations Advisor at Brown Advisory. She has extensive experience working with nonprofit organizations and foundations, as well as advising families on structuring their philanthropic legacy. As a member of the Sustainable Investing Development Team, she works with clients to develop a mission-aligned portfolio. Prior to joining Brown Advisory, Brigid practiced law for a number of years and was a member of the Wealth Advisory Group at Legg Mason Wood Walker, Inc. She is the past President of Paul’s Place Community Outreach Center and is a member of the Friends School of Baltimore Board of Trustees. She is a member of the Baltimore and Howard County Estate Planning Councils, the Partnership for Philanthropic Planning, and the Chesapeake Planned Giving Council. She received a JD from the University of Maryland School of Law in 2004 and a BA from Connecticut College in 2000.
Matthew W. Wyskiel
Skill Capital Management
Matthew W. Wyskiel
BCF Trustee and Investment Committee Chair spoke with passion and urgency about the need to deploy all available resources in pursuit of our vision: Baltimore boasts a growing economy where all have the opportunity to thrive.
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