This summer, I worked with Adirondack Community Foundation (the Foundation), based in Lake Placid, NY. The Foundation manages over $130 million of charitable funds, also known as assets under management (AUM), from donors who want to support non-profits in the Adirondack region. The Foundation grants out a portion of these funds every year to Adirondack non-profits, specifically those focused on basic needs, educational pathways, economic vitality, arts and culture, and the environment.
A key part of the Foundation’s function is to invest their AUM so that they can increase and perpetuate their granting potential. One thing that continues to impress me about the Foundation is that they are the largest grant maker for the Adirondacks. Further, despite the large geographic area they cover, they are extremely well-integrated into the entire community. They do this by maintaining connections with community-focused organizations like the region's community development financial institution (CDFI), regional economic development councils, chambers of commerce, and regional credit unions. Further, the Foundation acts as a convener for non-profits, small businesses, entrepreneurs, and other groups. This serves their mission by allowing them to connect with community members and gauge what is happening, what is wanted, and what is missing in the region. Further, they use these convenings to connect individuals and organizations to one another so that similar or complementary efforts are coordinated across the region. I connected with many of these non-profit leaders and it was amazing to see how many people are passionate about the success of this region.
For a long time, the Foundation invested their AUM into publicly-traded securities, like the S&P500. In 2021, however, the Foundation began investing a small portion of their AUM directly into the Adirondack region, a practice known as place-based impact investing. This expanded the Foundation’s ability to finance the vital parts of the Adirondack economy while also creating a return so that their AUM continued to grow. For the past five years, all of the Foundation’s impact investments have created low-interest rate loans for families, small businesses, and non-profits that otherwise would not receive a loan from a traditional bank. Rural areas are highly disinvested, so every dollar that is directed towards these areas is highly catalytic.
My first project this summer was to inform the Foundation’s future impact investing strategy by benchmarking the impact investing programs of other community foundations around the nation. When evaluating the programs of other community foundations, I aimed to gain a comprehensive understanding of their impact investing, including their governance structure, investment guidelines, focus areas, investment structures, and sourcing. After contacting around 15 community foundations, I analyzed the data for emerging trends and compiled my findings into a research report with recommendations for the Foundation.
My second project involved identifying geographic areas of need within the Adirondack Region and researching regional credit unions that the Foundation could partner with to reach those areas with impact investing. I began by mapping the Foundation’s past impact investments by geography to identify local gaps. I cross-referenced these gaps with census data to identify additional locations that would benefit from an impact investing program. I also created and evaluated a comprehensive list of regional credit unions and selected five to reach out to. This evaluation was based on the credit unions’ location, financial health, and existing loan-discount programs. An expanded impact investing program equips the Foundation to address a wider range of the Adirondacks’ complex regional challenges.
At 91Â鶹¾«Æ·, I’m studying environmental economics and philosophy. When applied, this combination balances financial gain and economic development with environmental and social benefits. Impact investing does exactly this by providing patient, flexible capital to organizations or causes that are good for the community. This was my initial understanding of the project and the reason I applied to the Upstate Institute. After my time with the Foundation, I have built a much better understanding of impact investing—its potential, its importance, and its complexities. For example, place-based equity investments are uncommon at rural community foundations. Further, I developed strong interpersonal skills—something I would not have expected from a seemingly data-heavy role. During my conversations with other community foundations, I strengthened my ability to generate questions and dig deeper into what I was told. This summer, I worked on a number of impactful initiatives at the Foundation, and I am incredibly grateful to the entire team in that little office with an amazing view right outside of Lake Placid. Working with Adirondack Community Foundation has given me skills, perspectives, and knowledge that I will carry with me through my personal and professional life.