There are many ways to meet your 1% in Community goal. Of course, how much that 1% is will vary widely from one person to the next. The recommendations below provide suggestions as to how you, or an institution you belong to, might start out investing in communities. Remember to do your research and consult your financial planner to ensure that your investments match your social and financial goals.

Everyone can have a checking or savings account at a community development bank or credit union. You can get all the benefits of these insured accounts, while knowing your money is building healthy communities.

INVESTMENTS OF $1,000 TO $5,000:
If you are looking to invest a thousand or so, community development banks and credit unions offer competitive rates for money market accounts and CDs. Investments into pooled community investment products—available Calvert Foundation and others—are also available at these levels and allow you to target the region of your investment

INVESTMENTS OF $5,000 TO $50,000:
At these levels, you might want to go beyond banking. Look into the high-impact options, and consider spreading your resources across more than one option. For example, you might place $5,000 with a domestic or international loan fund and $10,000 with a community development bank in CDs, money markets, or savings accounts. By investing through a pooled community investment product, you can diversify the organizations and communities you reach with a single investment. If you’re seeking to invest in a retirement account, check out community development banks and credit unions that offer retirement accounts, such as Self-Help Credit Union
and ShoreBank .

INVESTMENTS OF $50,000 TO $250,000:
In this range, investors can have significant community impact. You can choose to put money into one or a few organizations, taking advantage of the federal insurance at community development banks and credit unions for up to $100,000. You may also want to investigate high-impact options that go beyond banking, like loan funds and venture capital funds. Pooled community investment products continue to be an attractive option, given their built-in diversification and security enhancements. You could invest in anywhere from two to ten organizations. For example, one local foundation with $200,000 to invest placed $25,000 in three community development banks, $50,000 in their local community investment institution, and the remainder in a pooled product.

INVESTMENTS OF $250,000 TO $1,000,000+:
At these higher levels, investors usually combine some federally insured certificates of deposit with placements into two or more community investment institutions with high-impact vehicles . Pooled community investment products, such as those offered by the National Community Capital Association, offer an attractive alternative as they incorporate diversification across organizations, portfolio supervision, and professional asset management. At this scale, targeting by organization or region is generally available. For those seeking fully federally insured options, National Federation of Community Development Credit Unions and Calvert Foundation are prepared to manage a
portfolio of CDs invested in 10 to 20 different community development banks and credit unions.
Investors at this level may be eligible for the New Market Tax Credit. See p. 17 for more details.

—Shari Berenbach is executive director of the Calvert Foundation, a nonprofit affiliated with Calvert Group, Ltd. ; they are separate legal entities.To find community investing vehicles that mesh with your financial goals and values, see the resource section, starting on p. 19. This resource section also includes socially responsible financial advisers who can help you explore community investing, if you desire.

Impact of 1% in Community on a $100,000 Portfolio

If you invest $100,000 at5% interest ...

… the return on yourinvestment for oneyear would be $5,000.

If you invest $99,000 at 5% interestand put the remaining 1% ($1,000)into a community investmentvehicle that earns 3% interest ...

… at the end of oneyear, you’d earn$4,980 in interest.

Shifting 1% of your invested assets into community investing will have costyou just $20 in interest, but it will have made $1000 available for buildinghousing, jobs, and social services in communities that need them most.