THE SHEFA FUND
Mission
Shefa’s Tzedek/”Justice” Economic Development Campaign (Tzedec) provides a way for individual and institutional investors to invest in projects that help create affordable housing, good jobs and community facilities to revitalize low-income communities. Tzedec seeks to improve the financial infrastructure of these communities by making investments in community development financial institutions (CDFIs) — banks, credit unions and loan funds whose primary mission is to link low-income people to the economic mainstream.
Programs
Tzedec currently operates three loan programs:
The National Tzedec Challenge Pool (NTCP) makes loans and deposits in national intermediaries that support CDFIs across the country. The NTCP also makes challenge investments in cities that have Tzedec initiatives.
The Local Tzedec Challenge Fund (LTCF) makes challenge investments in cities specified by the investor, where local Tzedec campaigns are underway.
The Washington, DC Tzedec Community Fund (DC-TCF) makes loans to organizations for projects that provide housing, jobs, and community facilities for low-income people in the Washington, DC metropolitan area. Shefa intends to create similar funds for Boston and Los Angeles in 2002-2003.
Investing with Tzedec
On behalf of our clients, Trillium Asset Management Corporation made its first investment with TZEDEC in 1999. TZEDEC is pleased to invest funds on behalf of people of all faiths and encourages investments of at least $18,000 and a length of at least 3 years.
Impact
Community loan funds and credit unions across the country depend on national CDFI organizations to help supply lending capital to meet the needs of low-income borrowers. Shefa was the first Jewish institutional investor in two national CDFI organizations, and these investments are now supporting projects as diverse as community renewal in rural Wyoming and a school banking and financial education program in Brooklyn, NY.
When the Washington, DC Jewish community sought a way to assist its low-income neighbors in improving their neighborhoods, Shefa created DC-TCF to pool and manage community investments. The fund’s most recent loan is $252,000 in the Community Facilities Fund, a new venture to provide financing and technical assistance to help health clinics, day care centers, arts programs and other nonprofit social service providers maintain and upgrade their facilities.
The fund’s portfolio also includes a loan to Shiloh of Alexandria, a volunteer-run, church-based credit union serving a primarily African-American neighborhood in Alexandria, Virginia. With Shefa’s loan, Shiloh has improved its ability to provide small-sum loans to start businesses, reduce debt, and help many of its members start their first savings accounts.
Shefa is now organizing similar high-impact community investment initiatives in Baltimore, Boston, Los Angeles and South Florida.
Community Investment Profile
Geographic Impact: National
Lending Focus:
Tzedec lends to CDFIs engaged in housing, community development and/or business lending activities.
Special Interests:
Low-income communities
Financial Indicators:
As of June 30, 2001
Consolidated/audited — The Shefa Fund and the Tzedec Economic Development Fund (TEDF)
Total Assets: $16,172,490
Total Liabilities: $1,986,252
Revenue: $1,278,379
Expenses: $1,257,091
Tzedec (TEDF) Portfolio
As of December 31, 2001 (unaudited)
Portfolio: $1,268,360
Loan Loss Reserves: $63,418
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Investments in Tzedec loan funds are in the form of Notes issued, managed and held by the Tzedec Economic Development Fund, a wholly-controlled nonprofit entity of The Shefa Fund.
