Investment Strategy.

The Investment Strategy guides an investor's decisions based on goals, risk tolerance, and future needs for capital. The investment strategy includes an institution's Investment Policy Statement.

Non-Participation - Our community may not be aware that we have an investment strategy, or we don’t share information about our investment strategy.

Next Steps +

Assess what kind of non-participation your org engages in:

  • Exclusionary Non-Participation

  • Not sharing your investment policy externally.

  • Harm Reduction

    • Provide training for your staff and board on community-rooted investment strategies.

    • Complete an investor/funder readiness assessment.

    • Redo your Investment Policy Statement with your impact community in mind. 

  • Assess your institution’s risk appetite and identify places to redefine risk and return.

  • Shift from exclusionary to harm reduction or subsequent participatory strategies.

Inform - We publicly share information about investment strategy—goals, risk, size, etc.

Next Steps +

  • Publish your Investment Policy Statement publically.

  • Share how you developed your Investment Policy Statement.

  • Provide training and education on investment concepts and terms that the community can opt into. For example; why is an IPS necessary? Why do institutions have them?

  • Disclose projected grantmaking and endowment budgets for the year ahead.

  • Disclose capital gains or losses and any resulting impact on foundation strategy and capital allocations.

Consult - We gather feedback from our community to support our hypotheses about our investment strategy.

Next Steps +

  • Survey your impact community to understand where there is demand for local investments.

  • Develop a compensated community survey to collect data on needs and priorities.

  • Add a question to investment reports and/or applications on how the process could be improved.

  • Add a question to investment reports and/or applications about emerging community needs.

Involve - We involve our community members to help shape and inform the investment strategy planning process.

Next Steps +

  • Hold a workshopping session for the community to influence your IPS and the direction of your investment strategy.

  • Hold a workshopping session for the community to inform them of what information you should collect on your investment applications.

  • Attend a local community meeting or town hall and review what challenges they are looking to build or find solutions for.

Collaborate - Community members play an active role in shaping our investment strategy through meaningful processes they own, membership on advisory boards, or other formal power-holding structures.

Next Steps +

  • Run ongoing co-learning calls with your community to teach them about governance at your institution and learn about community priorities with the goal of influencing your investment strategy.

  • Pair staff and institutional leaders with community leaders to co-mentor each other on topics like investment strategy, governance structures, community needs, and racial and economic implications.

  • Build a community advisory community to provide input on investment priorities.

  • Hold ongoing workshopping sessions for the community to iterate on investment applications, due diligence, and assessment structures.

Sharing Power - We have numerous opportunities for community members to meaningfully engage with and make decisions on our investment strategy decisions and our decisions are proportionally representative of the communities we serve.

Next Steps +

  • Give community majority or complete decision-making/veto power over investment strategy, goals, and Investment Policy Statement.

  • Allow the community to set the standards and accountability measures around evaluating whether the investment strategy is being achieved.