Jewish Values, Universal Impact
The Federation has built the leading impact investing program in the Jewish community, funding projects that have helped create a more inclusive and equitable economy. We lend to mission-driven organizations that step in where traditional financial services fall short.
Our loans help underserved individuals and businesses gain access to fair and affordable credit in the Bay Area, across the U.S., and in Israel. This philanthropic model leverages our resources as one of California’s largest community foundations and an innovator in North America’s Federation network.
How it works
- Donors choose to use money held in donor-advised funds (DAFs) and supporting foundations for below-market rate loans and investments.
- Loans are made to select mission-driven financial services partners such as CDFIs, Hebrew Free Loan, and impact-first investment firms.
- Partners provide affordable loans and technical assistance to small businesses, nonprofits, and families who use the the loans and support to create positive change in their communities.
- Once the loans are repaid, the money is returned to the DAFs and supporting foundations, ready to be re-loaned or used for grants.
The Federation’s impact investing practice gives donors the option to use money held in donor-advised funds (DAFs) and supporting foundations for low-interest loans to support philanthropic goals.
This lending model multiplies the impact of every dollar
Once the loans are repaid, the money is returned to the DAFs and supporting foundations, ready to be re-loaned or used for grants.
Rather than sitting in traditional investment accounts, these dollars are out working toward their intended charitable purpose, aligned with the Jewish values that guide our work.
These impact loans are typically made with funds pooled from numerous DAFs, maximizing individual fund owners’ impact even more.
Jewish Values, Universal Impact
The Federation has built the leading impact investing program in the Jewish community, funding projects that have helped create a more inclusive and equitable economy. We lend to mission-driven organizations that step in where traditional financial services fall short.
Our loans help underserved individuals and businesses gain access to fair and affordable credit in the Bay Area, across the U.S., and in Israel. This philanthropic model leverages our resources as one of California’s largest community foundations and an innovator in North America’s Federation network.
Donor Dollars at Work
Over $56M Invested for Good. Our Impact Investing Supports:
Financial Inclusion
- Access to fair and affordable financial services for underserved populations
- Training for good jobs and economic development
- Small business support in Israel
Fostering a Thriving Jewish Community
- Zero-interest loans across Northern California from Hebrew Free Loan
- Building and renovating Jewish communal residences for students and families in the Bay Area
Affordable Quality Housing
- Addressing the housing crisis in the Bay Area
- Residential stability with access to supportive services
- Bridging the racial wealth gap for Black homeowners
Climate Change Mitigation
- Renewable energy initiatives
- Investing in businesses owned by people of color so they can contribute to and benefit from the transition to a green economy
Sustainable Agriculture
- Loans to California farmers to purchase land
- Improving financial stability of farmers in the Bay Area foodshed
- Increasing access to agricultural training and information
Capacity Building
- Expanding the scope and reach of Bay Area nonprofits serving low-income residents
Access to Quality Education
- Equitable access to education for “Dreamers”
- Support of a Bay Area Jewish Day School
Water, Sanitation, and Hygiene
- Improving water infrastructure and management
- Access to clean drinking water in rural California communities
Quality Jobs
- Job training leading to employment in a changing U.S. economy
- Helping immigrants to Israel enter the high-tech sector
Impact Investing Spotlights
Bringing Berkeley Bayit Back
Berkeley Bayit is a Jewish communal living house established in 1980 on the UC Berkeley Campus. While the original vision of kibbutz-style living remains strong, the historic house was in dire need of seismic upgrades and remodeling. Barry Cohn—a board leader at both the Federation and the Berkeley Bayit and a founding member of Berkeley Bayit—worked to implement his vision for utilizing Federation donor-directed funds for community projects. By structuring a low-cost loan to the Berkeley Bayit, the Federation mobilized philanthropic capital that was not otherwise needed for grantmaking.
The Bayit has been significantly transformed. The Bayitniks raised an impressive $565K for their project—and the $765K Federation loan covered the remaining renovation costs. Today, the house boasts seismic safety upgrades, new plumbing and electrical wiring, modern appliances, a revamped kitchen, and new bathrooms. Thanks to Barry’s efforts and his work with the Federation, Berkeley Bayit will continue to be a vibrant center of the Jewish campus community for decades to come.
Investing in Change: CNote’s CEO and Her Mission to Close the Wealth Gap
Catherine Berman’s career has been profoundly influenced by her family’s dedication to tikkun olam and Jewish traditions. These values inspired her journey to becoming the co-founder and CEO of CNote, an innovative platform designed to invest in the economic prosperity of financially underserved communities across America.
During her early career in finance, Catherine saw numerous financial innovations designed to further enrich the wealthiest 1%. Motivated by the Jewish teaching, “If not now, when? If not me, who?”, she felt compelled to act. Leaving traditional finance behind, she founded CNote to prove that financial innovation can be a powerful tool for closing the wealth gap, rather than widening it. Since its inception in 2017, CNote loans have created or retained 10,000 small business jobs and generated 6,000 new affordable housing units, all while allowing investors to earn interest on their deposits. To date, the Federation has invested nearly $6 million with CNote for impact and financial inclusion nationwide.
Events
Community Event
Hebrew Free Loan – Annual Business Circle Luncheon
San Francisco - details pending
Community Event
Hebrew Free Loan – Gala
San Francisco - details pending