For nearly five decades, San Francisco’s Congregation Sha’ar Zahav — Hebrew for “Golden Gate” — has been a trailblazer. Founded in 1977 as a Reform congregation with explicit outreach to the LGBTQ+ community, the synagogue has never shied away from pushing boundaries in service of its values. So, when Sha’ar Zahav’s leadership began exploring how to make its endowment fund work harder, both financially and ethically, their approach was very much in character.
A Growing Endowment, A Growing Responsibility
The story begins roughly four years ago, when Sha’ar Zahav’s endowment grew significantly, thanks in large part to a thriving legacy program. With that growth came new questions. Michael Chertok and Deborah Levy, both former board presidents now serving on the congregation’s endowment committee, found themselves thinking differently about what the fund could and should do.
“As our financial resources grew, we had to ask ourselves, ‘What’s the purpose of all this money?’” says Deborah. “Obviously, it’s to ensure our own survival as a community. But we can do more with it, and I believe that our Judaism asks us to.”
The committee didn’t move quickly. First came a formal investment policy statement, drafted with the support of the Federation and approved by the board. Then came education — conversations with investment advisors, research into impact investing, and careful alignment among committee members. “It wasn’t a fait accompli,” Michael notes. “It required a lot of education, a lot of discussion, to come to a place where we were ready to make this decision.”
The Federation’s Critical Role
Throughout this process, the Federation was not just a passive custodian of Sha’ar Zahav’s funds; it was an active partner in making impact investing possible.
For years, Sha’ar Zahav had kept its endowment entirely in the Federation’s endowment pool. But the committee’s ambitions required more flexibility. Working closely with Federation staff, Sha’ar Zahav became among the first agency fund holder to be given the option to invest in an ESG (Environmental, Social, and Governance)* investment pool. Sha’ar Zahav moved a portion of its assets out of the endowment pool and into the donor-advised fund (DAF) pools to have access to ESG options — a shift that opened the door to a much wider range of investment opportunities.
“We really appreciated the Federation opening up that possibility. It allowed us to make curated investments in ways that are aligned with our values and what we want to do as a community,” says Michael.
That flexibility wasn’t a given. At one point, the committee had genuinely considered moving its funds elsewhere. “We knew that we wanted to look at more socially responsible investing, and we didn’t see at first how we could do that within the endowment pool at the Federation,” Michael explains. “And it was only with some conversations that this emerged as a possibility.” He adds that this outcome mattered: “We’re glad that it worked out at the Federation.”
The Federation also played a key role in surfacing investment opportunities.
“The folks at the Federation understand our values, and they suggest possible grantees that may work for us. And then we discuss which options would work for us financially.”
— Deborah Levy, Sha’ar Zahav Endowment Committee Member
The Impact Investment: Grameen America
Additionally, because all Federation agency fund holders in any investment pool can make impact loans, the Federation helped Sha’ar Zahav identify Grameen America as its first impact loan — a natural fit for a congregation whose mission centers on inclusion and equity.
Grameen America, the U.S. arm of the Nobel Prize-winning Grameen Bank model, provides small loans to low-income women to start and grow businesses. For Sha’ar Zahav, the affinity was immediate. “We really thought that this investment was definitely aligned with what we believe in,” says Michael.
Due diligence reinforced the decision. The committee researched the organization’s track record and found a reputable institution with a clear model, and one that also makes financial sense. “This isn’t some fly-by-night venture,” Michael says. “We’re confident that we’ll be paid back for the money that we lend.” The impact investment carries a 3% return and, in the committee’s view, provides welcome stability. “If there’s a downturn [in the market], this investment will be a steady investment and pay a small positive return. To have a small part of our endowment invested in this countercyclical way is probably a good thing financially.”
For Deborah, the investment resonates on a deeper level. “It’s like really caring for people… It’s solutions that have an impact on individual lives.”
A Message to Other Congregations
Sha’ar Zahav’s leadership is candid that the process was not without effort — the education piece alone took considerable time and support from the Federation. But they are equally clear that the rewards are real, and that they hope other congregations will take notice.
“There’s a way to invest with your values in mind, without taking on significant risks to your investment or sacrificing returns,” says Michael. “We were able to get the best of both worlds.”
— Michael Chertok, Sha’ar Zahav Endowment Committee Member
Deborah’s advice is direct: “Educate yourselves. And express the desire to invest ethically, even if you think you don’t understand enough, or you’re not sure — keep asking and keep talking about it to find the language. There are people at the Federation who really care about this, and there are ways to do it. But it’s not always the norm, so you do have to ask a lot, and talk a lot, and stick with it.”
The congregation’s board has responded with enthusiasm. Presentations to the Va’ad — Sha’ar Zahav’s governing board — have been met with messages of appreciation from members both during meetings and after. “All we have received is positive feedback,” says Deborah.
What Comes Next
This is, by design, just the beginning. The committee is already exploring additional impact investments — looking at opportunities in LGBTQ+ communities, climate, and other areas aligned with the congregation’s values. “We did this as a test — let’s test to see how impact investing works and see how this feels,” says Michael. “And we’re now open to potentially making additional impact investments.”
As for her vision for the future, Deborah’s hopes are characteristically ambitious — and communal. “I would love, in a year, to be able to say something like, ‘we were contacted by four or five other synagogues who asked us about it,’ or to hear from our representative at the Federation: ‘Wow, since you guys did this, it looks like now we have a block of six Bay Area synagogues who all want to do a joint impact investment.'”
For Sha’ar Zahav, tikkun olam (repairing the world) has always been a guiding value. Now, it’s an investment strategy, too.
Learn more about opening a DAF, agency funds, and impact investing with the Federation.
*ESG integrates non-financial metrics into investment and corporate strategies. It evaluates how a company performs regarding climate risk (environmental), human capital (social), and leadership ethics (governance) to assess long-term financial viability and risk.
