100 years

Hawai‘i Community Foundation
Social Impact Investment Fund

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Catalytic capital to make meaningful impact

In Hawaiʻi, there is an undersupply of expansion capital for Hawaiʻi-based nonprofits and social ventures. Hawaiʻi Community Foundation (HCF) has launched a pilot $5 million fund called the Social Impact Investment Fund, which provides revolving, catalytic capital to Hawaiʻi-based nonprofit and for-profit organizations and qualified intermediaries that can have impact on critical social issues that align with HCF’s CHANGE Framework.

Impact investing is any type of investment structured to generate both a financial return and a measurable social or environmental return. All investment opportunities are evaluated by a team of HCF staff and an external investment consultant to ensure they are aligned with critical needs in our communities and have investable assets. The portfolio is expected to have low interest rates and loan terms of up to seven years.

Areas for investment:

  • Small Business Support
  • Early Childhood
  • The Environment
  • Affordable Housing
  • Sustainable Food Systems

How it works:

Launched in 2020, the Social Impact Investment Fund is a three-year pilot to see how philanthropic investments and revolving loan capital can be used as a tool to make positive impact. Currently, the pilot is mainly focused on lending to community development financial institutions (CDFI), which help those who don’t qualify at traditional banks or credit unions get a loan to purchase a home, start a business or get back on their feet.

The Fund has reached its target of $5M with $1M seed capital from HCF’s operating reserve, including a donation from Bank of Hawaii, and $4M in contributions from HCF donors, supporters, and partners, including MacKenzie Scott’s gift to HCF in 2020. Donors are welcome to make a minimum contribution of $100,000.

Current investments:

Courtesy of Hawaiʻi Community Lending

Hawaiʻi Community Lending

Hawaiʻi Community Lending (HCL) is a US Treasury certified community development financial institution that provides affordable loans and financial education to local residents shut out from the mainstream financial system. HCF’s Social Impact Investment of $1M in HCL will be pooled with other public and private funds to get affordable loans to ALICE (asset limited, income constrained, employed) households across the state as a strategy to increase income, build assets, and access to the mainstream banks and credit unions for sustainable economic self-sufficiency. HCL will administer loans through its revolving loan fund, while its parent nonprofit, Hawaiian Community Assets (HCA), will provide free financial education through its network of Financial Opportunity Centers. Together, HCL and HCA will help increase ALICE and below borrowers’ improve their financial knowledge, instill positive financial behaviors, use financial resources for family and community well-being, and mitigate risk to the loan fund. This project is part of the housing and small business lending subsector and the Community & Economy sector of the CHANGE Framework.

Courtesy of Hawaiʻi Habitat for Humanity

Hawaiʻi Habitat for Humanity

Hawai‘i Habitat for Humanity Association (HHFHA) created a community development financial institution (CDFI) in 2015 to provide lending capital and help facilitate mortgage transactions for Habitat affiliates (the five local Habitat for Humanity chapters in the state) and take advantage of state monies being set aside to help struggling families access homeownership. HCF’s Social Impact Investment of $500,000 supports HHFHA’s objective of creating 500 new homes over the next five years.

Courtesy of Hawaiʻi Homeownership Center

Hawaiʻi Homeownership Center

Hawaiʻi Homeownership Center is a community development financial institution (CDFI) focusing on homeownership in Hawaiʻi. HCF’s $500,000 investment in the Hawaiʻi Homeownership Center will help them scale and provide services to a larger segment of the population. This project is part of the housing subsector and the Community & Economy sector of the CHANGE Framework.

Courtesy of Hawaiʻi ʻUlu Cooperative

Hawaiʻi ʻUlu Cooperative

Hawaiʻi ʻUlu Cooperative (HUC) is a young and growing farmer-owned agricultural cooperative with a focus on heritage crops for Hawaiʻi, primarily ʻulu. The cooperative supports small- and mid-scale farmers and also serves as a hub to sell to institutional buyers, restaurants, and individuals.

To grow their operations, continue to build their brand and better serve the farmers in Hawai’i, HUC has created a set of financing vehicles that allow outside investors to support the growth of the cooperative, while still centering their work on the needs of the producers. HCF’s loan of $200,000 over seven years would allow them to make two critical hires of a sales manager and a member coordinator and to purchase a blast freezer to scale and improve quality and food safety of frozen staples product line. This investment is part of the wealth, wages & asset building subsector and economic diversity and job creation subsector, as part of Community & Economy sector of the CHANGE Framework. It is also part of the sustainable agriculture subsector and local food production and consumption subsector, as part of the Natural Environment sector of the CHANGE Framework.

Resources:

 

Interested in learning more? Contact Christine van Bergeijk, Senior Vice President & Chief Impact Officer, by calling 808.566.5547 or email cvanbergeijk@hcf-hawaii.org.