Developing our impact investments
It’s hard to believe we’re more than halfway through 2022. As each month seems to bring a new challenge, from the latest COVID variant to a rollback in reproductive rights, we find ourselves even more motivated to create an equitable Bay Area. .
Exclusionary policies and practices have resulted in racial inequalities that prevent far too many Bay Area residents from thriving. For example, white residents are almost twice as likely to own their homes compared to black residents and 50% more likely than Latinx Bay Area residents. And the business ownership rate is six times higher for white workers in the Bay Area than for black workers, and five times higher than for Latinx workers.
As one of the foundation’s tools to address these inequalities, our Bay Area Community Impact Fund (BACIF) provides local nonprofits and social enterprises with low-interest loans. We’re excited to share our 2022 Bay Area Community Impact Fund report, to give you insight into how our impact investing is helping us advance our mission.
With the publication of this report, we announce an exciting expansion of our impact investments: SFF now allocates a portion of our two long-term investment pools to BACIF. This year, we are allocating over $4 million for additional impact investments in local communities and will increase this amount over time with a targeted allocation of 5% of each pool (~$24 million), subject to demand for additional loans.
In addition, BACIF last month secured a new $1 million impact loan to REAL People Fund to provide funding to entrepreneurs of color based in East Oakland, West Oakland, Richmond and San Pablo. Through this partnership, SFF is helping break down barriers to capital, build community wealth, and create quality jobs in communities of color.
Advancing racial equity requires bold solutions. In addition to our grants and advocacy, our local impact investments, made in partnership with our donors, are essential to these solutions. I invite you to explore this page —our 2022 Bay Area Community Impact Fund Report —to learn more about our new BACIF allocation and other ways SFF’s impact investments are creating a more equitable Bay Area.
Sonja Velez, Chief Financial Officer
The impact of our investments
The Bay Area Community Impact Fund helps make the Bay Area a better, more inclusive place through investments in community organizations that create and maintain jobs, affordable housing, and sustainable communities.
Growing the Investment Pool for the Future of the Bay Area
We have $24 million in the fund and a strong pipeline of opportunities looking for investment. Our goal is to grow the fund to at least $30 million so we can continue to grow our impact in supporting relief, recovery and renewal in the Bay Area. To date, the fund has provided 26 loans totaling $26 million to zero loss.
The Bay Area Community Impact Fund is a pooled fund with investments from the SFF endowment and donor-advised funds.
The Bay Area Community Impact Fund has grown from $5 million in 2009 to $24 million. We have now lent out more than the size of our current funds as the loans are repaid and we recycle the funds into new investments.
See the list of current investments.
Maximize the impact of your Donor Advised Fund
The Bay Area Community Impact Fund combines unrestricted funds from the San Francisco Foundation with donor-advised fund allocations to make program-related investments in organizations and projects that align with our vision of a Bay Area. Fair area for all residents. By providing nonprofits and social enterprises with access to long-term, low-interest loans, especially in communities of color, the Bay Area Community Impact Fund enables organizations to expand their activities and fund high-impact projects.
As loans are repaid, we make new investments from the Fund, recycling capital back into communities. Any capital not used in direct lending is deployed in other mission-aligned investments, such as insured deposits at local community banks and credit unions that support strategies such as affordable housing, economic opportunity, and lending. entrepreneurship of women and people of color. Learn more about the Bay Area Community Impact Fund.
Learn more and join the effort
For more information about investing in the Bay Area Community Impact Fund, contact the Philanthropy and Donation Planning Team at (415) 733-8590 or Donor Services[at]sff.org.