/ What is impact investing?
Impact investing represents a set of powerful tools being used by foundations of all types and sizes to make a difference in communities and sectors. By investing in ways that generate both a targeted social benefit and a financial return, impact investing tools help foundations make the most of their capital assets.
/ What is FundATX?
FundATX is a portfolio of investments that address social issues and improve economic security in Central Texas. At the same time, those investments generate financial returns that allow philanthropic capital to be recycled back into the community to do even more good.
/ Can anyone invest in FundATX?
Anyone is welcome to participate in FundATX. In order to realize and advise on the financial gain, you must have a donor advised fund (DAF) at Austin Community Foundation. The DAF serves as the vehicle for recycling the funds back into the community through future grants or impact investments. Please call Austin Community Foundation at 512.472.4483 to open a donor advised fund.
If you’re not ready to open a DAF, you can make a grant to FundATX. When you make a traditional grant to FundATX the capital and gains remain in the fund and are reinvested.
/ How can ACF fundholders participate?
DAF Fundholders may invest a portion of their assets to FundATX. Assets invested in the fund will be immediately deployed to the strategic investments and, along with other co-investors, will work to close the opportunity gap in Central Texas. Because the funds are committed to the investments, they are not available for grant making.
/ What are the terms?
The minimum investment is $3,000 for a commitment period of two years.
/ What are the fees?
Other than the fees associated with a donor advised fund at ACF, there are no additional fees to participate in FundATX.
/ What are the potential returns?
Our primary purpose is to generate social returns consistent with our mission while leveraging capital to meet the needs of our region. ACF targets an estimated financial return of 2 percent, which flows directly back to your DAF or can be reinvested in FundATX. The social impact of the portfolio is reported to investors twice a year.
/ What are the risks?
As with any investment, there is always the risk of loss. Our careful due diligence and close partnerships with proven intermediaries mitigates these risks. The Foundation recognizes that this is a possibility. If a borrower should default, Foundation staff and the Community Impact Committee will determine whether there is appropriate recourse from the borrower or any of its guarantors. Any losses to the fund will be shared pro rata among all investors, including the Foundation, based on invested capital at the time of the loss.
/ What organizations are in the FundATX portfolio?
How do I get started?
Set up a Donor Advised Fund at Austin Community Foundation. Call 512.472.4483.
Complete and sign a DAF FundATX acknowledgement form.
Not ready to set up a DAF?
I’m interested in investing in another PRI. Can I make my own impact investment through Austin Community Foundation?
Yes! Contact Cybil Guess at 512.220.1194 or firstname.lastname@example.org to discuss your options.