Laura Heintzelman, foundation president and CEO, spoking during a City of Manistee Planning Commission meeting July 11 to share how impact investing can help the foundation generate both a financial and social return.
“It came out of recognizing that our grant-making alone is not going to be enough to help us address our community’s complex and increasingly expensive challenges,” Heintzelman said. “… We considered ways to expand our impact … and looked at reflecting and learning from what other community foundations and other foundations are doing. (We looked at) taking a portion of the monies that are invested, and rather than investing them in our traditional portfolio, looking at ways we can invest them locally right here in Manistee County.”
Heintzelman said the community foundation will not be doing the local investing on its own.
“We don’t have that expertise, but we’re partnering with special type of entity called a community development financial institution,” she said. “… They are a special type of financial institution that really helps to serve underserved communities, helps to increase access to affordable capital. They don’t compete with banks, but they partner with banks because they each do different things for community members.”
For more than 35 years the foundation has served “as a vehicle for philanthropy, helping to connect donors with making meaningful and lasting change across Manistee County,” Heintzelman said.
The foundation awarded in 2023 more than $700,000 in grants and scholarships.
“Contributions to the community foundation become local community assets that help support and sustain this place that we all love,” Heintzelman said.
The foundation made $250,000 loans to two community development financial institutions, according to Heintzelman, which in turn have started loaning in Manistee County.
“It’s really the sweet spot in the middle where we are looking to both generate a financial return because that’s important to us to continue to fulfill our mission and have money available for grant-making each year, but we’re also looking for that community benefit,” she said. “… I hope to very soon have more updates to share with the community about the specifics of how those loans are helping to enhance the quality of life here, helping to strengthen our economy.”