Monday, May 5, 2008

What is SRI? - Part IV: Community development

Community development generally involves investments in projects that are deemed of social worth to the community but may be considered too risky by traditional lenders – mortgages for low-income families, for example, or housing projects, etc.

The pooling of funds to lend out for such efforts can be done at the level of institutional investors, or by banks and credit unions established with the specific goal of supporting such projects. By placing your funds in a bank such as this instead of a traditional bank, you may sacrifice some return in exchange for the knowledge that your funds are spurring the kind of development you see as most valuable.

Examples of such institutions include ShoreBank and Self-Help.

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