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.

  • Build Trust.

    Move away from a transactional mindset and towards genuine long-term relationship building. Honesty and accountability are key, especially when things go wrong or mistakes are made. This means being vulnerable and speaking truth to power, sometimes even within your own institution.

    Be Accountable.

    Set up accountability structures within your institution to ensure community feedback, insight, and decisions are captured and acted on in a timely and meaningful manner. Frequent temperature checks gauging community sentiments towards your participatory efforts help measure the success of your journey and identify any needed course corrections.

    Model Transparency.

    Clear and complete information is needed for community members to meaningfully participate. You can set the tone by ensuring any information shared is direct, understandable, and omits jargon. Information should be provided promptly—in a timely manner, in the written, visual, or oral formats most helpful to your community. Any requests should come with reasonable turn-around times.

    Compensate.

    Community members should be compensated for their time and expertise. This also means addressing other barriers to participation such as childcare and transportation. Community members are often asked for their opinions and input without remuneration. This perpetuates power dynamics and wealth inequities. Make sure to carve out a budget to compensate for participants’ time and effort. For more information on equitable compensation practices click here.

    Provide Clear Entry and Exit Points.

    Have clear timelines and milestones so the community can make informed decisions about engaging. Give clear direction on how community members can begin to engage, and how they opt out or stop. Consider exploring onramps and off-ramps to committees, positions on board, etc. to limit ambiguity and confusion.

    Allocate Resources.

    Dedicate resources such as time, team capacity, and budget to ensure that best practices are met throughout the process. This work takes significant staff capacity, relationship capital, time, and capital. It requires long-term commitment and dedicated budgets to match intentions.

    Shift Power not Burdens.

    While power sharing is important, it’s also important not to relinquish responsibility. Placing additional responsibilities on the community may also place undue burden. Institutions have access to resources and capacity that the community does not. Institutions should work with the community to identify the places they can absorb responsibilities, tasks, and work, to make it easier for the community.

    Set Expectations.

    Institutions must clearly communicate what is malleable and what is immutable within a process so community members can set their expectations accordingly. Knowing and clearly communicating where change is possible and where input matters targets the participatory process towards things that are influenceable. It also prevents community members from feeling like their perspectives and engagement weren’t respected. Before communicating this, institutions must internally understand where and how changes can be made.

  • Non-Participation

    Denying access to information, withholding information, or otherwise not sharing information as a result of unconscious or conscious exclusion. It can be intentional, such as when aiming to reduce harm before incorporating community voice.

    Inform

    Providing objective, relevant, and accessible information in a timely manner regarding decisions that have already been made. The information isn’t just clear and understandable, but it’s transparent and provides the context needed to make sense of it.

    Consult

    Gather input to obtain feedback, experiences, expertise, etc. through clearly defined channels controlled by your organization.

    Involve

    Ensure assets, needs, and concerns are integrated into processes and inform planning through bilateral processes that give everyone an opportunity to influence the direction/outcome. Involving the community includes more one-time engagements.

    Collaborate

    Ensure the capacity for the community to be in a substantive partnership role in decision-making and the implementation of decisions. Collaborating with the community includes more ongoing partnerships.

    Share Power

    You foster democratic participation and equity by sharing decision-making power. Confirm you are sharing power by tracking your efforts through continued conversation with your community to ensure they feel like they have the information and agency to make decisions.

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.