Do a basic assessment of where your institution is at, and identify the steps you need to take to implement a place-based investment approach to improve community health and well-being.
Leadership
- Leadership and governance have communicated institutional support
- Investment staff and treasury department are supportive of program
- Dedicated staff have been identified to manage institutional objectives
- A business case for place-based investment is developed, institutionalized, and communicated
Investment Policy
- Governance authorizes Environmental, Social, and Governance (ESG)/Socially Responsible Investing policy, which includes guidance or directives on place-based investment
- Investment portfolio integrates ESG criteria into investment decision-making across asset classes
- Current investments are examined for alignment with institutional objectives
- Place-based investment carve-out is integrated into asset allocation
- Dedicated operational resource stream is created for community benefit interventions aligning with place-based investments
Partnerships and Community Engagement
- Community development organizations and intermediaries focused on improving social, economic, and environmental conditions in targeted communities have been identified
- Community stakeholders are included in the design, selection, and promotion of place-based investments
- Partnerships are developed with other large employers to tackle community-wide challenges, such as access to affordable housing, healthy food, childcare, and/or primary care
Data and Program Infrastructure
- Areas of place-based investment focus are identified
- Key principles and criteria for guiding place-based investments are outlined
- Investments can be tracked and monitored internally and by auditors
- Loan application, standard form documents, and other program materials are created
- Desired rates of return, duration, and type of investments are formalized
Staffing and Interdepartmental Infrastructure:
- Full- or part-time staff provide administrative, financial service, and legal support
- Full- or part-time staff contribute mission, community health, or health equity perspective
- Full- or part-time staff support relationship building and identifying investment opportunities
Diversity, Inclusion, and Sustainability Goals
- Percentage of place-based investments benefit communities of color
- Percentage of place-based investments benefit residents of low-income communities
- Percentage of place-based investments support sustainability objectives
Decision-making Structure
- Institutional “home” for program is identified, such as an interdepartmental place-based investment working group or committee
- Place-based investment staff identify opportunities and undertake due diligence
- Advisory committee reviews recommendations from place-based investment staff
- Executive staff approve recommendations for place-based investment
- Governance provides final approval of investment decisions (optional)
Board and Governance
- The CEO and senior management regularly review place-based investment status reports
- Governance regularly reviews place-based investment status reports, including narratives and financials
- Hospital leadership participates in governance of community development financial intermediaries and other inclusive economic development partner organizations
- Leadership participates in governance of nonprofit borrowers
Marketing the Program
- A public-facing place-based investment brochure is developed and disseminated
- A website exists explaining the program
- Leadership and community-facing staff at local facilities understand and promote the program
- Key community leaders are aware of the program
Scaling Local Impact and Building Community Wealth
- Recurring evaluative process expands impact and scope of program
- Institution assists in mapping gaps in access to capital within the service area
- Institution assists with addressing capital gaps in low-income communities
- Employees can participate in place-based investment and socially responsible investment through their individual retirement accounts and/or pension investments
Quick Practice Upgrades
- Foster relationships between community outreach and investment staff
- Move cash assets into local banks and credit unions
- Engage key nonprofit partners
- Join impact investment networks
Simple Policy Measures
- Build a relationship with a CDFI
- Allocate assets from investment portfolio for place-based investments
- Connect capacity building with direct lending
- Switch to an impact investment advisor