This webinar explains how The Rotary Foundation Donor Advised Fund can help you save money now and help communities later. Past Rotary International Vice President Greg Podd will discuss the benefits and ease of streamlining your philanthropy.
Investing to solve the racial wealth gap. Venture philanthropy to solve the friends and family gap for entrepreneurs who don't have a rich uncle. Equity to give them runway to be able to access loan funds.
FinTech & InsureTech - Corporate Lending: Company presentation by Sebastian Nienaber, Founder & CEO of ConsciousGrowth at the NOAH Conference London 2019, 30-31 October, Old Billingsgate.
Students will learn about how the different forms of financial aid can help them finance their college education, and how to obtain funding help when paying for college.
This webinar explains how The Rotary Foundation Donor Advised Fund can help you save money now and help communities later. Past Rotary International Vice President Greg Podd will discuss the benefits and ease of streamlining your philanthropy.
Investing to solve the racial wealth gap. Venture philanthropy to solve the friends and family gap for entrepreneurs who don't have a rich uncle. Equity to give them runway to be able to access loan funds.
FinTech & InsureTech - Corporate Lending: Company presentation by Sebastian Nienaber, Founder & CEO of ConsciousGrowth at the NOAH Conference London 2019, 30-31 October, Old Billingsgate.
Students will learn about how the different forms of financial aid can help them finance their college education, and how to obtain funding help when paying for college.
A fund investing donations from church members to solve the friends and family gap for small Black owned business owners who don't have a rich uncle, to give them the runway to grow to become eligible for loan funds
mosaic approach to landscape management. #biodiversity Runway Project
the mosaic approach to landscape management is an evolutionary step up from a species approach; you design the places important species can thrive. It's being done well in England.
2. Challenge - Nontraditional Financing Model
for
Black and Brown Businesses
Global Pandemic
50% of Black and Brown businesses are at risk
during COVID nationally
Not A Time for Debt
If you don’t know when your customers are
coming back, taking on debt is irresponsible.
Many Black and Brown businesses do not have
access to loans
3. Challenge contd. - Nontraditional Financing Model
for
Black and Brown Businesses
…the Wealth Gap
In the 2019 survey, white families have the highest
level of both median and mean family wealth:
$188,200 and $983,400, respectively Black and
Hispanic families have considerably less wealth
than White families. Black families' median and
mean wealth is less than 15 percent that of White
families, at $24,100 and $142,500, respectively.
Hispanic families' median and mean wealth is
$36,100 and $165,500, respectively. Other
families—the median, reflecting the concentration of
wealth at the top of the wealth distribution for each
group. (https://www.federalreserve.gov/)
4. The Solution
EMSDC Community Equity
Fund
The Fund injects equity capital, not
debt, the capital is returned to the
Fund through dividend shares of the
businesses annual gross revenues.
5. Case Study:
Bread & Butter - Coffee and Co-working
Space
Bread & Butter, led by two African American males with
business experience, located in a historical commercial
business district. The business has $100k in annual
revenues.
Comparables value for the business are @ $150,000.
Community Equity Fund, provides an equity injection of
$30,000 for a 20% ownership stake in the business for
the life of the transaction, approximately 3-5 years
Inaugural Injection
6. Life Span – Flow of Injection
After the grace period, (24 mos.) Bread & Butter’s (B & B)
gross revenues grow to a minimum of $200,000
Starting in month 25, B & B begins repayment to the fund
through dividend shares, 7% of annual gross revenues,
funds will be payable monthly or quarterly typically for a
period of 3-5 years
Full repayment would be 150% of equity injected
7. $30, 000 – to Community Equity Fund – 100%
$3,000 - Management Fee – 10%
$12, 000 - Donor-Investor Income Pool – 40%
$45,000 = 150%
Allocation of Dividend
Repayment
8. Replication Across the Fund
From each equity injection round, the
fund continues to receive 150% return
from the dividend shares paid by the
business owners, 100% is re-invested
into Black and Brown owned businesses.
What the Fund Gets
9. Replication Across the Fund
Contd.
40% of the dividend shares flow to the
donor-investor pooled income which
pays lifetime income to donors.
Your donation continues to cycle through
your community.
10. Success
The Fund becomes a $1M fund
The Fund becomes and “evergreen fund”
The number of Black and Brown owned
businesses are increased in WNC and the
region