Impact Investing
Recycling Philanthropic Dollars for Community Benefit!
Why Impact Investing?
Social good doesn’t always have to start and end with grantmaking.
Traditionally, philanthropy and investing have been viewed as two separate disciplines – one championing social change, the other financial gain. Impact investing integrates these two approaches, presenting an innovative opportunity for philanthropists and investors to put their investment resources to work for social change.
Through impact investing, philanthropists can advance social and environmental solutions through investments that can also produce financial returns.
Benefits include supporting sustainable community development and recycling philanthropic dollars back into communities to address systemic and emerging needs, such as affordable housing, child care, and climate change.
How it Works
Potential projects are analyzed by the Whidbey Community Foundation, and if they are socially or environmentally impactful as well as financially prudent, the Board will make a grant from a donor-advised fund (DAF) or field of interest fund held by WCF to a nonprofit financial intermediary. The intermediary will vet the investment, review the terms, and make the debt, equity or revenue-based investment. Returns from the investments will be recycled into the original fund held at the Community Foundation and made available for future investments in the community.
What You Can Do
Anyone can make a donation to WCF and earmark it for an impact investment in a field of interest fund. Those who hold a DAF with WCF can specify that an impact investment be made on their behalf through their fund.
Do you have an idea for an impact investment? We would love to hear about your philanthropic goals and interests! Reach out to us info@whidbeyfoundation.org or call 360-660-5041.
Our First Impact Investment!
Whidbey Community Foundation made its first impact investment in 2023 to a local farmer practicing regenerative agriculture—Foggy Hill Farm. Foggy Hill Farm is a woman owned and operated farm on South Whidbey. Founded by Alanah Lawrason in 2020, she is in her fourth growing season providing fresh produce and cut flowers to Whidbey residents and the greater Seattle area. The farm employs two people seasonally (including founder Alanah). The demand for local produce is high but there isn’t enough supply. As the current vice-president of the Whidbey Island Grown co-op board, Alanah is actively working to increase the success of the Food Hub. Investing in fall and winter production will allow Foggy Hill Farm to increase sales through the Food Hub, farmers’ markets, and wholesale relationships to help meet that demand.
How It Works
A 5-year loan from WCF’s Impact Investing Fund will enable Foggy Hill Farm to expand year-round food production with capital and operational expenses.
WCF is working with Realize Impact—a nonprofit financial intermediary. Realize Impact vetted the project for impact and prudence. Whidbey Community Foundation made a grant to Realize Impact who underwrote the loan to Foggy Hill Farm. As the loan is repaid, Realize Impact will return the proceeds to the Impact Investing Fund at Whidbey Community Foundation which will be made available for future investments in the community.
Interested In Applying?
Whidbey Community Foundation (WCF) invites eligible nonprofit and for-profit organizations to submit a Stage 1 Letter of Intent (LOI) to be considered for an impact investment that supports community well-being and economic resilience on Whidbey Island. Learn more and apply today!