A New Investment Option for MCF Donors
Donors at MCF have a new investment option that enables them to support community efforts in Marin County while growing the assets in their fund at the Foundation. It's called the Marin Community Investment Pool.
The assets in this pool will be managed within the Foundation's existing MCF Loan Fund, which offers low-interest loans to Marin nonprofits. This revolving fund provides short- and long-term financing for a wide range of important nonprofit endeavors in Marin, including affordable housing, environmental protection, and arts education, among many others.
Some examples of loans from the MCF Loan Fund are described below.
While the Foundation's Loan Fund has assets of $10 million, the need in the community for loans exceeds the Foundation's current capacity. By investing in the Marin Community Investment Pool, donors at MCF can help close that gap.
This new investment option provides a rewarding way for donors to invest their charitable assets: they help support important local community efforts, they earn a modest rate of return, and, when these assets are returned to their fund, they are available as grants that donors recommend.
To participate, donors can elect to invest a portion of the assets in their fund into the Marin Community Investment Pool as one of their investment options — while maintaining the existing investment options available to them for the balance of their fund.
The basics of this new investment program are:
- There is a minimum $50,000 investment.
- There are four maturities from which to choose — from one year to four years.
- The funds placed in the Marin Community Investment Pool will be returned to the donor's fund at the end of the investment period.
- Should a borrower default on a loan, donors who contribute to this pool will assume risk in proportion to their percentage of the overall Loan Fund.
- The Foundation will perform all administrative duties, including due diligence and selection of qualified Marin nonprofits.
- The Community Investment Pool is overseen by the Foundation's Board of Trustees, which also approves all loans.
- While all loan investments have some risk, loans from this fund are collateralized, and over the past 15 years of the Loan Fund, we have not experienced a default. While we believe the MCF Loan Fund risk is minimal, Foundation staff can address any questions donors have about this aspect of the program.
If donors at MCF are interested in learning more about this program, they can contact Sid Hartman at 415.464.2513 or by email.
2010 Marin Community Investment Pool Options
Investments into the pools will be accepted until October 31, 2010.
| Term | Interest Rate | Investment Maturity |
|---|---|---|
| One year | 1.50% | October 31, 2010 |
| Two years | 1.75% | October 31, 2011 |
| Three years | 2.00% | October 31, 2012 |
| Four years | 2.50% | October 31, 2013 |
How the MCF Loan Fund is Helping Marin Nonprofits Serve Our Community
A Construction Loan Enabled The Marine Mammal Center to Build Its New Facility
In June 2008, the Marin Community Foundation provided a $1,000,000 construction loan to The Marine Mammal Center. The loan was used to fund the last phase of construction on its new facility at Fort Cronkhite. The completed project permits the organization to integrate all functions at one location; improve animal care; create a more efficient, effective, and safe work environment for staff and volunteers; and provide new opportunities for education and collaborative research.
This loan enabled The Marine Mammal Center to successfully meet a challenge provided by another foundation. In order to receive the funding, the Center had to raise $6,500,000. MCF's $1,000,000 loan was the final piece of this funding puzzle. And with overwhelming support from the community, The Marine Mammal Center was able to finish construction and repay the MCF loan — early!
The MCF Loan Fund Helped Develop Transitional Housing
In January 2008, Marin Community Foundation provided a $3,000,000 construction loan to Homeward Bound to complete construction on its new Next Key project. The Next Key provides low-cost housing for previously homeless individuals who wish to move from a position of low or no job skills to long-term stable employment. Residents can rent one of the 32 studio apartments for $550 per month, while taking advantage of the job training programs offered on-site. The Foundation's loan will be repaid with long-term debt from the State of California and other financing sources.
The value of the loan to Homeward Bound was considerable. "Without the loan from MCF, there would not be a Next Key. This loan allowed us to build out the entire project and avoid costly delays. Considering the economic collapse, the timing could not have been better," said Mary Kay Sweeney, executive director of Homeward Bound.
