Parnassus Community Development
At Parnassus, part of our social responsibility philosophy means investing back into our community. Up to 2% of the Parnassus Funds' assets are invested with community development financial institutions (CDFIs) that offer credit, capital, and financial services to individuals and organizations engaged in work that benefits low-income communities.
We are cognizant of investing shareholder dollars profitably and responsibly. When we consider investing in a CDFI, we look at how much that institution has impacted a community as well as how conscientious they are when choosing to finance individuals and organizations.
The following are examples of CDFIs that we invest in:
Boston Community Capital
For Boston Community Capital, healthy communities can be identified as those that have organizations that provide its residents with quality services such as affordable housing, childcare, and health-care services. Boston Community Capital recognizes that these crucial services are often lacking in low-income communities and its mission is to transform such areas into healthy communities. Boston Community Capital has financed affordable housing initiatives including those embarked upon by New Atlantic Development Corporation. This for-profit developer has collaborated with established non-profit organizations on housing projects like the Uphams Corner Marketplace, a formerly abandoned market that will become affordable rental housing and commercial space, and the Ruggles Assisted Living Facility, the first inner-city, low-income, assisted-living facility in Massachusetts.
Root Capital
Root Capital strives to offer affordable financing to rural enterprises located Latin America, South America, and Africa whose business activities cultivate economic development and environmental conservation. This organization is able to invest in areas that are economically volatile because of its lender criteria that the borrower must have an established relationship with green market purchasers, ensuring that risk of default is minimized. Specialty coffee farmers such as those in Rwanda, Nicaragua, and El Salvador have significantly benefited from Root Capital's financing. These coffee farmers leverage their borrowed capital to harvest coffee and capture prices from buyers that are considerably higher than market price from coffee buyers, therefore allowing them to pay workers higher wages and drastically improve standards of living in these rural areas. Root Capital helps these farmers maintain viable businesses sources by providing financing for short-term trade, off-season maintenance loans, and long-term infrastructure development.
Shorebank Corporation
As the first community development bank in the United States, Shorebank shows that financial institutions are important and powerful players in community development. Its mission is to invest in people and their communities to create economic equity and a healthy environment while simultaneously achieving financial success. Shorebank fulfills its mission by providing community development loans to business, individuals, and faith-based organizations in areas where the median income levels are lower than in its surrounding region. In addition, Shorebank offers conservation loans to entities working toward environmental improvements and advisory services. Without Shorebank, organizations like the Allemas Childcare and Enrichment Center in Cleveland, Ohio, which provides 75 students with high quality curriculum, would be nonexistent due to lack of financing.
Vermont Community Loan Fund
The Vermont Community Loan Fund finances projects that add value to Vermont communities while providing opportunities for low-to-moderate-income residents. The Fund's mission is to strengthen Vermont by providing equitable access to capital for affordable housing, community facilities, and small businesses. The Vermont Community Loan Fund provides financing only if borrowers use the capital for affordable housing development, community facilities, small businesses, childcare facilities, or agriculture and agri-tourism enterprises. Such was the case with the Rutland County Community Land Trust which turned to the Vermont Community Loan Fund when it needed financing to create a seven-unit, mobile-home park to counter several mobile-home park closures elsewhere in the county. Since its founding, VCLF has provided over $26 million in loans, creating countless jobs, affordable housing units, and childcare services.