Impact Investments at RWJF

Our nation is witnessing time and time again how devastating natural disasters, fueled by climate change, impact health and economic security. In the wake of these disasters, everyone suffers losses, but a lack of federal and state disaster relief funding goes to properties held as heirs’ property—which occurs when land is passed to descendants following the loss of a loved one without the formal documentation to prove ownership. This denial of relief is a major obstacle to rebuilding and recovering a family’s largest asset: the home. A recent report from the National Association of Real Estate Brokers explains how heirs’ property contributes to property loss and wealth erosion for Black families. The comprehensive findings point toward one overarching takeaway: Black land loss, both historical and present, significantly worsens the racial wealth gap. With natural disasters adding to the cumulative and disproportionate losses for families of color, we need solutions and we need them quickly. Strategic partnerships, policy change, and legal support for families can all help to reduce the impact of heirs’ property in the U.S. and preserve wealth for Black families. https://lnkd.in/e6-vGZ-a

Homeownership is often a household’s most valuable asset, yet not enough programs help families keep their homes once they own them. The Center for NYC Neighborhoods is filling in this gap, supporting more than 3 million homeowners across New York State with mortgage assistance, foreclosure prevention, flood insurance, and more. The Center’s national community development financial institution (CDFI) and subsidiary Sustainable Neighborhoods is on a mission to preserve homeownership. We are proud to invest in unique, innovative CDFIs like this as they help homeowners face challenges like unattended home repairs or mounting foreclosure risk. Read more about this $5M loan in our case study below ⬇️

Thanks to Raza Development Fund—a national community development financial institution (CDFI)—for hosting our impact investment lead Zoila Jennings at your 25th Anniversary Latino Impact Summit last week! Zoila has been instrumental in expanding our team’s efforts to support communities that have historically been overlooked by the traditional finance system. CDFIs are key players in this work but need philanthropy to do more to support their crucial efforts through impact investing. It’s amazing to see such a powerful and inspiring group come together to reflect, connect, and discuss strategies to enhance economic mobility, increase financial inclusion, and create healthier communities for all. Check out Zoila below alongside Neha Shah from Charles Schwab and Brenda Loya from the Justice Climate Fund—two brilliant community development leaders—and explore some of the takeaways from a panel Zoila participated in called “The Latino CDFI Landscape.” 

Amazing initiative from the Nonprofit Finance Fund! The $20M BEACoN initiative—designed to build community wealth and protect against displacement—is an exciting new fund that will spur community-owned real estate across New Jersey, bringing economic stability and improving wellbeing. We’re glad our 2023 investment helped provide the funding needed to launch this project, and we look forward to seeing the impact it makes in our state. 

What is an impact-first investment approach? Different from traditional impact investing, an impact-first approach does as the name implies: it prioritizes the economic and social benefits of an investment above maximizing financial return. In a recent article in Nonprofit Quarterly, Steve Dubb dives into how this model can help break down barriers business owners of colors face in the mainstream finance system, and drive more funding into local organizations well-equipped to deploy them to the community. Based on the findings from a report released at the end of 2024 from Boston Impact Initiative (BII), a previous RWJF grantee, this model can be very effective for funds seeking to attract additional funding from investors, including philanthropy. Learn more about BII and their research: https://lnkd.in/eYnKbtyj 

With costs of living rising across the nation, getting money back into families’ wallets is critically important. The Earned Income Tax Credit (EITC) is one federal program designed to do just that. It provides working people with low-to-moderate incomes--especially those with children--with a tax reduction or even a tax refund, helping them pay bills and be more financially secure. This EITC Awareness Day, we’re thinking about ways that national, state, or local tax codes can be used to drive investment and increase economic opportunity. Programs like this are not government handouts. They are simply giving a portion of taxes back to the workers who paid them. This can contribute to thriving local economies, support small businesses, improve living conditions, and strengthen communities. We need more of this!

Impact investments are a powerful tool for advancing health equity, but grantmaking alongside investments adds strength. Our grantmaking aims to boost our grantees' financial health, inform our future investments, and identify challenges and possible solutions in priority areas like homeownership preservation or community development. And some of our grants help recipients attract additional funding, including available public funds. Examples include: 🟣A $200,000 grant to the Wind River Development Fund, which helped fund it application to and subsequent award of $36 million from the U.S. Economic Development Agency Recompete program. 🟣A $250,000 grant to ROC USA, which supported its efforts to secure a $38 million PRICE Initiative award from the U.S. Department of Housing and Urban Development (HUD). 🟣A $1 million grant to Enterprise Community Partners, which helped local leaders unlock millions of dollars in HUD 108 funds for economic development, affordable housing, and community development projects. Even 10 years ago, philanthropy realized the potential grantmaking has generate additional impact with investments. These key points remain true today: https://lnkd.in/ezxqz8vS

36% of state funding comes from the federal government, to feed kids, house people, protect abused children, vaccinate people and much more. It is a violation of our democracy, our rights as taxpayers and our shared values to "pause" these grants. Thank you The Pew Charitable Trusts for bringing new light and sunshine to this disastrous executive action.

Leaders with lived experience in the communities they serve—deemed proximate leaders since they are close or “proximate” to their work—are the best people to direct neighborhood change that meets the needs of residents.  RWJF believes that funders can help position organizations led by proximate leaders for long-term success through flexible, unrestricted funding. This year, RWJF provided grants to five community development organizations with standout leaders who recently took over to help advance their missions. They are:   ⭐CommunityWorks, led by CEO Latorrie Geer  ⭐PIDC led by president Jodie Harris ⭐Wind River Development Fund, led by executive director Paul F. Huberty  ⭐Urban Redevelopment Authority of Pittsburgh, led by executive director Susheela Nemani-Stanger  ⭐FirstLight Federal Credit Union, led by CEO Margie Salazar    From rural Wyoming to Pittsburgh, PA, we have no doubt that their work will make communities healthier and more equitable. Learn more about each of these leaders and their organizations in Inside Philanthropy: https://lnkd.in/evQwwk79 

The devastating wildfires sweeping across Los Angeles are another reminder of the urgent need for the U.S. to rethink home insurance.    Over the last two years, more than half of the largest home insurers in the nation have pulled out of California or greatly increased their premiums. AccuWeather estimates the cost of damage and economic loss from the fires to be more than $250B, and while state-run insurers—who step in to fill coverage gaps private insurers leave behind—aim to protect the homeowners they cover, the availability of payments is uncertain depending on the total amount of claims filed.     Our team at RWJF is working with grantees and partners to find solutions. From exploring ways to improve government assistance for disaster recovery to new insurance models, we hope to identify multiple ways investors and funders can be a part of the solution.     Leslie Kaufman reports for Bloomberg: https://lnkd.in/eX-BeqXx