Impact Investing

Impact investing allocates a portion of the Foundation's endowments to make strategic financial investments in businesses and organizations working for social change in Forsyth County.  

Unlike traditional grantmaking, these local impact investments generate not only a social return, but also a financial return that can be reinvested in the community. This program complements and augments the Foundation’s work to build an inclusive economy. 

OUR INVESTing APPROACH

Our impact investing approach integrates both a place-based lens and a racial equity lens. As an organization deeply rooted in Winston-Salem, we have extensive knowledge of community issues. This enables us to actively support initiatives that will lead to greater economic mobility for local residents.

We also recognize that many of our community members have long been denied access to resources and opportunities based solely on their race. For decades, public and private institutions have perpetuated discriminatory policies and disinvested in Black and Brown neighborhoods. This history continues to exacerbate the racial wealth gap in our community today. Read more about redlining in our Community Matters blog post.

Through this work, we’re serving as a catalyst for change by investing in projects that will benefit communities of color, while mobilizing additional capital and taking meaningful steps to reverse racial inequities. Our role goes beyond financial support; it’s about sparking systemic change and fostering a more just and prosperous future for all.

Guiding Principles

The Foundation seeks and makes investments in enterprises and economic opportunities that:

• build the civic, social, and financial capital of communities of color
• support ownership and governance by communities of color
• are focused in Forsyth County and/or significantly benefit the population in Forsyth County
• provide investment growth that can be used to support the Foundation’s grantmaking  

We invest in both nonprofit and for-profit organizations that operate in line with the above principles.

Investment Information

Loans and equity investments will typically range between $100,000 and $1,000,000, with flexible terms and rates.

For Loans:

• The maximum loan duration is 10 years, with a preference for shorter durations
• Interest rates will aim to be offered below market rate; the Foundation is committed to setting interest rates that meet an organization's need while also meeting the portfolio's mission
• Guaranty of loans are permissible at no charge as long as the applicant complies with all loan covenants

For Equity Investments:

• Investments are available in equity funds only (no direct equity ownership)
• Quarterly reporting will be required to evaluate the most current value of the equity investment

HOW TO APPLY

Applicants will be asked to submit basic project information that allows the Foundation to determine if the project is eligible for an impact investment. If the project is determined to be eligible, Foundation staff and consultants will work with the applicant to assemble materials for a full underwriting application for the proposed investment.

Submissions are accepted at any time. After receipt of initial materials, organizations will be contacted within 30 days as to whether they are invited to submit a full proposal. The process will take three to four months from receiving initial materials to closing an investment.

Impacting Investing FAQs