How You Can Invest In IFF
Opportunities for investing in low-income communities through IFF include:
IFF’s Investor Consortium
A big portion of our lending capital is IFF’s Investor Consortium, which offer investors full security and a slightly higher return. Over 28 financial institutions participate in our Investor Consortium, regularly buying notes that are backed by seasoned IFF mortgages that are eligible for CRA credit. Two percent of the proceeds from these note sales are set aside as a reserve — further protecting investors — and consortium members purchasing the notes receive cash flows from the underlying loans, minus a servicing fee. We use the remainder of the proceeds from the note sale to make new loans in low-income communities.
Loans to IFF
Another important source of our lending capital comes from unsecured loans we receive from financial institutions, insurance companies, and religious investors. Loans to IFF can be focused on the communities and program areas that align with your investment priorities, and loans from banks are automatically eligible for credit under the Community Reinvestment Act (CRA). We also receive unsecured loans in the form of Equity Equivalent Investments (EQ2s) and low- or no-interest Program-Related Investments (PRIs).
Equity and Operating Grants
We rely on grants from foundations, corporations, and government agencies to support our work and increase our impact. Equity grants allow us to grow our net assets, leverage additional private investment, and increase our lending in low-income communities. Operating grants help fund technical assistance to nonprofits, initiate comprehensive community development efforts, and engage in public policy and research.
Special Initiative Grants
We can work with you to design initiatives that address your strategic goals for improving low-income communities in the Midwest, including creating new financing structures and products; providing real estate consulting to nonprofits; leading comprehensive community development initiatives; and engaging in research and public policy advocacy.
We are eager to work with you to design and target investments that align with your corporate and social responsibility goals. Please email or call us at 866 629 0060.