Local Investing

[Caitlin Quigley]

This discussion page is for our efforts towards local investing.

[Caitlin Quigley]

Some feedback from Jennifer at the Small Business Development Center:

 

"I encourage you to firm up a definition of local and sustainable to be used for the purpose of this project.

Perhaps break the respondents into groups of investors and business stage of growth.

The investors would need to have a means set in place to build a relationship and invest in a business.

Terms and contracts would need to be put in place.

Business owners could be separated into stages such as  pre venture,  early stage – 0-2 years, stabilize 2-4 years growth 5+ years.
Each groups needs could be matched with an investor or mentor."

[Dianne Foster]

I'm curious how someone would invest as an IRA,   i.e. mostly that is done through an institution of some kind,  like Fidelity,  or the Credit Union,  that sits on the money to verify that it is not being spent as income for tax purposes.    Maybe the LION group in Port Townsend has an answer to this.

Walter Haugen said:

Laura and Caitlin - Here is a proposal from 5 Loaves Farm in Lynden. It is the food bank farm I manage and Dave Timmer is the Stewardship Director. Could you route it to anyone in your group who may be interested? Thanks.

[Judith Culver]

Dianne and all, Currently the LION model is based on personal contracts between individuals and cannot accommodate investment within an IRA.  In our meeting yesterday with Bob Ferris, executive director of ReSources, this was identified as one of the greatest barriers to local investment.  Investment/SEC regulations prevent any easy solution to this problem.

[Caitlin Quigley]

Hi all,

I just wanted to let you know that James Frazier of LION is doing a BALLE webinar on Mar 1:

http://www.livingeconomies.org/node/470

It's not free unless you're a BALLE member.

Not that useful per se since we already talked to him about our questions and ideas, but it did lead me to this  website for a LION in Madison, WI: http://lioninvesting.com/  Anyway, I hadn't seen it and thought I'd share.

[Shirley Jacobson]

These are some established model and loan/investment opportunities you might want to explore.

Tax deductible grant model

1.  http://www.donorschoose.org/about/how_it_works.html

 

DonorsChoose.org is an online charity that makes it easy for anyone to help students in need.

Here's how it works: public school teachers from every corner of America post classroom project requests on DonorsChoose.org. Requests range from pencils for a poetry writing unit, to violins for a school recital, to microscope slides for a biology class.

Then, you can browse project requests and give any amount to the one that inspires you. Once a project reaches its funding goal, we deliver the materials to the school.

You'll get photos of your project taking place, a thank-you letter from the teacher, and a cost report showing how each dollar was spent. If you give over $100, you'll also receive hand-written thank-you letters from the students.

At DonorsChoose.org, you can give as little as $1 and get the same level of choice, transparency, and feedback that is traditionally reserved for someone who gives millions. We call it citizen philanthropy.

 

You can sort by State and City. I found one project for Bellingham.

 

2.  http://www.modestneeds.org/

 

Modest Needs exists

         To prevent otherwise financially self-sufficient individuals and families from entering the cycle of poverty, when this might be avoided with a small amount of well-timed financial assistance;

         To restore the financial self-sufficiency of individuals who are willing to work but are temporarily unable to do so because they do not have the means to remit payment for a work-related expense;

         To empower permanently disadvantaged individuals who otherwise live within their limited means to continue to live independently, despite a temporary, unexpected financial set-back; and

         To strengthen small non-profit organizations by providing a forum whereby such organizations can apply directly to the general public for the help they need to complete the relatively inexpensive projects that will allow them to better serve their clients and the communities they exist to serve.

In keeping with its mission, Modest Needs offers the following four types of grants

         Self-Sufficiency Grants Modest Needs makes Self-Sufficiency Grants by remitting payment to a creditor for an expense on behalf of an otherwise self-sufficient individual or family for a relatively small, emergency expense which the individual or family could not have anticipated or prepared for.
In making a Self-Sufficiency Grant, our goal is to prevent an otherwise self-sufficient individual or family from entering the cycle of poverty as a result of the financial burden posed by a relatively small emergency expense.
For example, we might make a Self-Sufficiency Grant to cover the cost of an emergency auto repair that must be made if an individual is to continue working.

         Back-to-Work Grants Modest Needs makes Back-to-Work grants by remitting payment for a small work-related fee or expense on behalf of a temporarily unemployed individual.
In making a Back-to-Work grant, our goal is to provide a willing but temporarily unemployed individual with the means to return to work.
For example, we might make a Back to Work grant to cover the cost of a professional license renewal for a temporarily displaced worker.

         Independent Living Grants Modest Needs makes Independent Living Grants by remitting payment to a creditor for an expense on behalf of persons who are permanently unable to work but who nevertheless are living independently on the limited income to which they are entitled - their retirement income, or their permanent disability income, for example.
In making an Independent Living Grant, our goal is to empower financially responsible persons who cannot work to continue to live independently on their limited incomes, despite an unexpected expense which no conventional agency is prepared to address.
For example, we might make an Independent Living Grant to cover the cost of maintenance on a piece of accessibility equipment not covered by Medicaid, to cover an unexpectedly large prescription medication co-pay, or to assist with a large summer cooling bill.

                  Non-Profit Grants Modest Needs makes Non-Profit Grants by remitting payment to a creditor for an expense incurred by a small non-profit organization that will demonstrably strengthen that organization's ability to serve its clients and community.
In making Non-Profit Grants, our goal is to provide a forum whereby small non-profit organizations can apply directly to members of the public for the assistance they need to complete the small projects that will allow these organizations to more effectively carry out their missions, but which most larger grant makers would not generally consider a funding priority.
For example, we might make a Non-Profit Grant to cover the cost of a handful of new beds for a small but expanding women's shelter or to assist with the creation of a basic website for a small non-profit with no ability to communicate directly with its own constituents.

 

You can search by state and some other variables. I found 4 in Washington but none from Whatcom Co. People can also use this site to apply for help.

 

Investment Models

 

1. http://www.kiva.org/about/howLenders browse loan requests and select which ones they'd like to fund. Lenders can fund as little as $25 and as much as the entire amount of the loan. To help streamline the loan transaction process, loan requests posted by the Field Partner are rounded up to the nearest $25 increment. Kiva aggregates funds from Kiva lenders and provides them to the Field Partner.

 

1. https://www.microplace.com/

 Choose a project that’s meaningful to you. You can select projects based on the places or causes you’d love to help, as well as the financial return that works best for your needs. The more money you invest, the greater your poverty impact can be.

 

 

 

[Shirley Jacobson]

http://www.opednews.com/articles/KEEPING-THE-STATE-S-MONEY-by-Ellen...

Nice article by Ellen Brown on State Banks. Explains how State Bank acts as a mini fed to support local banks and local investing.