Calvert Giving Fund Invests Gifts in Promoting Good

The Calvert Giving Fund works much like other donor-advised funds but with a twist — the assets that donors contribute to set up their funds are invested in companies and other efforts that promote the social good. Most other funds simply invest in traditional stocks, bonds, and other ways to produce income.

“We believe that the philanthropic gifts that they’ve given to the donor-advised fund really need to go to work as soon as they are contributed,” says Shari Berenbach, leader of the Calvert Foundation, in Bethesda, Md., which runs the fund.

Started in 2001, the Calvert Giving Fund has always given donors the choice of investing money held in donor-advised funds in socially and environmentally responsible mutual funds run by the Calvert Group and in Community Investment Notes issued by the foundation.

The notes act like the program-related investments that foundations make. Money invested in the notes is lent to nonprofit organizations to build low-cost housing, to provide small loans to entrepreneurs in developing countries, and for other charitable services.

Investors receive their principal back, along with up to 3 percent interest. That money can then be used to make charitable gifts from the donor-advised fund or be reinvested.

Last year, the fund expanded the number of debt and equity investment products in which donor-advised assets can be held. Among the new investments are notes issued by:

• Acumen Fund, a nonprofit group that invests in companies that provide health, water, housing, and energy services to people in developing countries living on less than $2 a day.
• Public Radio Capital, a nonprofit organization that makes low-interest loans for the purchase or expansion of public broadcasting stations.
• Root Capital, a nonprofit organization that provides capital and expertise to help farmers and craftspeople in developing countries build businesses.

The Calvert Giving Fund has 400 accounts totaling $26million. The assets are split between Calvert Group mutual funds and the program-related-investment-style vehicles.

In a difficult time for investments, the Calvert Giving Fund has fared better than many investors have. Over all, the fund ended 2008 down less than 5 percent. “We really outperformed our counterparts handsomely,” says Ms. Berenbach.