January 2019 Newsletter
How Foundations Can Deliver Social Impacts in OZ :
Ways Community Foundations can Create "Marketplaces" for Opportunity Zones
This month, Adam Northup, LOCUS Financial Strategist, checks in on Opportunity Zones, their potential for positive change, and possible pitfalls.
As I wrote a couple months ago, the Opportunity Zone program is off and running, and, with the right guidance, could be a powerful tool for local impact investing. The potential to unlock capital exists through the preferential tax treatment and shelters provided by the program to investors with capital gains. And in the last few months, the federal government added more fuel to the fire.
The Treasury and the IRS released clarifying regulations, and business media is calling the proposed rules “ taxpayer-friendly ,” though I might call it “real-estate developer/investor friendly.” A few weeks ago, the President signed an executive order directing HUD to convene agencies and focus policy and resources in the Opportunity Zones. Disappointingly, but not surprisingly, there is still no requirement that ensures community benefits in the form of inclusive and equitable wealth generation and quality of life improvements, particularly in under-served communities. –  Read More On Our Blog
LOCUS FOCUS
A New Chapter for the LOCUS Board.  We are proud to announce that Sherry Magill will join LOCUS as a member of our board of directors. Former President of the Jessie Ball duPont Fund , Magill led the Fund for 25 years. LOCUS is grateful for the wide breadth of experience she brings in support of foundations’ place-based impact investing initiatives. Learn more about Sherry Magill here .
Pictured: Sherry Magill
Spark: What Sparks Your Action, Connections, and Ideas? In February, the Florida Philanthropic Network will host its 2019 Statewide Summit on Philanthropy where Travis Green , LOCUS Solutions Consultant, will co-present a workshop with Mark Brewer , President and CEO of the Central Florida Foundation .
The workshop will build on the findings of a 2018 report published by The Chronicle of Philanthropy and LOCUS. The report indicates that nearly $9 trillion dollars will transfer from one generation to the next by 2027. Highlighting the existing wealth in communities across the nation, the report is helpful for place-based institutions in overcoming the notion their localities lack philanthropic capacity. The workshop will review the report and profile community foundations around the US that have developed strategies to capture wealth for their communities. – See the Summit Schedule
Partner Spotlight
During the 2018 VCC Learning Exchange , Erika Poethig of Urban Institute shared insights on place-based impact investing initiatives. In its earlier report , LOCUS was identified as an ecosystem builder. This past November, the Institute released a followup report describing how to measure community needs, capital flows, and capital gaps.
Opportunity Zones with United Philanthropy Forum. LOCUS Financial Strategist Adam Northup spoke during a virtual Public Policy Peer Community hosted by United Philanthropy Forum for its members. During the call, Adam shared the LOCUS research and perspective on Opportunity Zones and how place-focused foundations can help ensure positive community benefit with the new tax provision. Forum members can access a recording of the conversation here . For questions about the talk and Opportunity Zones, reach out to Adam Northup .
VCC 2018 Learning Exchange.  LOCUS parent company Virginia Community Capital (VCC) held its 2018 Learning Exchange . Erika Poethig , Chief Innovation Officer of Urban Institute , and Bruce Katz , author of “ The New Localism ” and former Centennial Scholar at the Brookings Institute , presented a conversation on place for a national audience moderated by Craig Carper , News Director for 88.9 WCVE Public Radio . They discussed place-based trends and how institutions all over the country are innovating to unlock capital and revitalize communities.
Pictured (left to right): Craig Carper , Erika Poethig , and Bruce Katz discussing place-based trends and the rise of localism.
News From the Field
An article from the Stanford Social Innovation Review highlights Benefit Chicago , a collaborative place-based impact investing initiative of the MacArthur Foundation , the Chicago Community Trust (CCT) , and Calvert Impact Capital . The fund, established in 2016, aims to mobilize $100 million in impact capital for the Chicago region. – Read More
Virginia Community Capital launched an effort to support increased lending towards community revitalization through an Affordable Housing 18-month CD. – Read More
In an annual reflection, Arabella Advisors highlights six growing trends in the philanthropic field. The commentary showcases the growth of impact investing as a mainstream force in philanthropy. – Read More
An article by Debra Schwartz , Managing Director of Impact Investments with the MacArthur Foundation  shares insights on the emergence of more flexible investment strategies yielding even deeper, more sustainable impact. – Read More
“Impact investing is the wave of the future and the way all community foundations are heading.”  Mission Investors Exchange (MIE) identifies 5 top impact investing themes for community foundations. – Read More
Where You'll Find the LOCUS Team
Jan. 14 Greenville, SC
Deb Markley and Travis Green will facilitate (Private Event).
Feb. 6 Little Rock, AR
Deb Markley and Travis Green will facilitate (Private Event).
Feb. 6-8 Salt Lake City, UT
Adam Northup is a speaker, and Ed Gerardo, LOCUS Advisor, will participate.
Feb. 12-13 Washington, D.C.
Deb Markley will participate (Private Event).
Feb. 13-15 Lake Buena Vista, FL
Travis Green is a speaker.
Feb. 19-20 Austin, TX
Deb Markley and Travis Green will facilitate (Private Event).
March 5 Brooklyn, NY
Teri Lovelace is a speaker.
March 10-14 Petaluma, CA
Travis Green will participate (Private Event).
April 28-May St. Helena Island, SC
Deb Markley will participate (Private Event).
April 29-May 1 Miami, FL
Teri Lovelace is a speaker.
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LOCUS Capital, Inc. is a Registered Investment Advisor Firm. Advisory services are only offered to clients or prospective clients where LOCUS Capital, Inc. and its representatives are properly licensed or exempt from licensure. LOCUS Capital, Inc. and its representatives do not furnish investment advice or services through this website. Past performance is no guarantee of future returns.