IA Capital Legacy Fund
How We Make a Difference:
The IA Capital Legacy Fund roots go way back to the founders themselves. The founding members continue to be a champion for overlooked markets by supporting innovative business models that address large societal challenges. Our social lens has brought a unique perspective to how equity financing can uncover and nurture businesses otherwise overlooked by traditional investors. In the process, The IA Capital Legacy Fund has supported companies that have radically transformed the market in which they operate. Additionally, the IA Capital Legacy Fund looks to create or preserves jobs in communities where low-income people live and work.
Since 1998, the founding members have invested millions of dollars in companies and profitable business ventures across a broad range of industries—from Transportation, Education, Job Training, Affordable Housing, Technology, Healthy Lifestyles, Urban Gardening, Sustainable Energy and Waste Remediation. We have invested in business models that provide quality goods and services to lower-income communities or other disadvantaged populations, enhance the stability of lower-income or rural neighborhoods, and produce products that enhanced the environment or reduced pollution.
Our seed investment into the Technology landscape not only supported the company’s founding and growth over the past 20 years; it also changed communities through Investments in to businesses such IA Cafe, which fostered healthy eating habit in disenfranchised communities and Brooklyn Interactive’s Technology Center that provided much need computer training and technology supplies to youths, adults, businesses and seniors at a time when computers were a relatively new concept.
Since 1989 the Founding board members have been socially responsible investors on a personal and corporate level. In 2017, in accordance with our business plan, we released a document entitled “The Next 5-years (2017 – 2021)”. As part of the 5-year plan, IA Capital has submitted an application to the US Treasury to become a certified community development financial institution. Once approved that will allow us to make loans to support many more community development projects that contribute to building healthier and stronger communities. Combined with your participation, our Fund can provide patient, flexible capital to our borrowers, making an immense difference in the communities we serve.
What’s new in 2018?
IA Capital in 2018 will increase our philanthropic capacity by opening the fund to outside contributors such as individuals, Corporations, Foundations, Civic & Religious Organizations, Wealth Advisors and Financial Institutions.
From the beginning, the founding board members of IA Capital have focused on connecting investors with opportunities in our communities, and to work with our partners to ensure that these investments are repaid.
Now those investors will include individuals, religious organizations, civic organizations, businesses, foundations, and financial institutions. We know they are looking to invest in projects and organizations that are making a difference – creating affordable housing, educating our children, providing access to health care and vital community services. They want to align their money with their values. They want a return – both financial and social. And they want a partner who can help them achieve these goals.
IA Capital has a 20-year track record of investing in underserved communities. Whether we are financing an education center or a health center, an individual homeowner or an affordable housing development, we work to structure the investment appropriately and mitigate risks, providing flexible capital that has the power to transform communities.
By opening up the doors to investors ranging from financial institutions to foundations, religious communities, and individuals will allow additional capital to funnel into the disenfranchised communities where we do our work. Their contributions will provide capital for our lending, and make it possible for us to inject more financing into low-income communities across the country, allowing us to innovate, grow and provide patient, low-cost capital where it’s needed most.
This will be an opportunity to convert a one-time charitable donation into a never-ending perpetual charitable legacy, that will actually increase over time. Through the IA Capital Legacy Fund individuals and organizations other than our board and members will now be able to contribute funds alongside IA Capital and jointly acquire cash flowing commercial & multi-family housing projects often out of reach to any one individual, that’s true leverage.
Advantages of a Pooled Approach:
Together, IA Capital and its donors can co-invest and co-donate, sharing not only in the associated tax benefits of charitable giving but through this strategy we’ll create an ever increasing and perpetual tax-deductible gifting stream of revenues for the nonprofits we support. Additionally, there is also the potential for long-term appreciation of the assets, realized through mortgage pay downs and potential asset appreciation, that both contributors and IA Capital can look forward to realizing as time passes.
From affordable housing developments to health care centers and charter schools, our Loan Fund borrowers are in the trenches, transforming communities, and changing lives.
The IA Capital Legacy Fund will look to acquire, renovate and manage properties that fall within our geographic and mission-focused spectrum. Revenues above the total operating expenses, including debt service, will be 100% donated to those charitable organizations we choose to support, while equity appreciation remains owned proportionally by donors and IA Capital based on contributions into a particular project.
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IA Capitals total returns are realized through tax-deductible contributions, potential asset appreciation, property management fees & fund management fees.
Donors total returns can be realized through tax benefits such as tax-deductible contributions deposited in to and gifted from their personalized Giving Account, allowing them to choose which services to support; as well as potential asset appreciation.
Additional Potential Benefits:
We anticipate our investors, which will include individuals, religious organizations, civic organizations, businesses, foundations, and financial institutions, are looking to invest in projects and organizations that are making a difference – creating affordable housing, educating our children, providing access to health care and vital community services. They want to align their money with their values. They want a return – both financial and social. And they want a partner who can help them achieve these goals.
IA Capital has a 20-year track record of investing in underserved communities. Whether we are financing education programs or programs that promote a healthier lifestyle, an individual homeowner or an affordable housing development, we work to structure the investment appropriately and mitigate risks, providing flexible capital that has the power to transform communities.
How can participating in the IA Capital Legacy Fund allow you to become a more Socially Responsible Investor?
Through this fund, the ability to turn a one-time donation into a perpetual never ending gift is paramount for the future of these communities.
Being a Socially Responsible investor doesn’t necessarily mean earning less; in fact, it’s quite the opposite. The IA Capital Legacy Fund offers donors the opportunity to pool their resources and invest in higher-potential business revenue models that create not only strong and conservative financial returns but also social and environmental returns.
The Mission of the IA Capital Legacy Fund is to (1) provide an increasing and perpetual giving stream of revenue that will provide the long-term financial resources to the non-profit organizations and programs we support, (2) to offer the advantage of leverage, and (3) potential long-term appreciation in the assets we invest in.
Potential benefits of donating to the IA Capital Legacy Fund:
Turn a one-time donation into a perpetual never ending gift
Your Charitable Contributions can grow over time as the debt service on the asset reduces Your Tax Deductions increase simultaneously as the donations increase overtime You maintain the ability to direct your giving to the programs that matter most to you.