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The capital markets that can invest in socialenterprise are chaotic and low-impact. The problem is that both the political left and right in the last 35 years have enacted policies that prevent the next generation from building mutualist enterprises. The right only promotes competitive market solutions to solve for human needs.
Earlier this year , the federal government historically the second-largest funder of nonprofits in the United States, after income from program feesordered a blanket federal funding freeze, putting over $300 billion in annual funding for nonprofits at risk. Todays model for funding nonprofits and socialenterprises is fundamentally broken.
While many foundations screen their endowment investments based on environmental, social, and governance factors, only a few optimize their investment strategies for mission impact. From inception, the pool was centered on communitydevelopment financing activities and emphasized racial, gender, and economic equity.
What if the tens of thousands of churches currently projected to close in the next few years put their assets into trusts deeply aligned with communitydevelopment, versus stranding those assets and real estate as they shutter?
Most practitioners working in communitydevelopment have accepted this as the reality of impact investing: The harder you drive for social impact in disadvantaged communities, the farther away you get from unbuffered full market return.
To transform our economy, we need to network, learn, ideate, iterate, and resource the work together as nonprofits, for-profits, community leaders and members, philanthropic institutions, governments, donors, and investors. Our organizations have started to map and build these networks in the Seattle area and Washington state.
ROC USA can make this work because it can extend financing via its communitydevelopment financial institution (CDFI) subsidiary. It can also tap into philanthropic funds and an increasing number of public sources of low-cost debt and communitydevelopment grants.
And in so doing we are challenging the communitydevelopment field to do better—by creating new tools to support truly equitable food-oriented development. Many large communitydevelopment financial institutions , credit unions, and foundations present themselves as community-based food financing leaders.
Our government is discussing providing free wifi throughout in Mexico City which is a very good sign for crowdfunding and even better for NGOs funding. The top three causes are medical expenses (25%), start-up costs for a socialenterprise (25%), and disaster relief (23%). Finally, digitalization is growing fast in Mexico.
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