Funding Source

Organizations or individuals that could invest in a company

ANCHOR INSTITUTION Nonprofit institution such as a university or hospital that once established tends not to move location. It can have significant impact in its local community via its investment, procurement, hiring and philanthropic practices.

ACCREDITED INVESTOR Investor with annual income above $200k ($300k for couples) or minimum net worth of $1M. An organization may be accredited if it has a minimum of $5M in assets or if its owners are accredited investors.

ANGEL INVESTOR Individual who provides financial support and strategic advice to entrepreneurs launching early stage enterprises, usually in exchange for convertible debt or equity. Angels often form organized collectives to identify investment opportunities.

BANK Regulated financial institution with access to the Federal Reserve. It is able to offer low interest rates, but primarily to organizations with profitable financial histories.

CDC Community Development Corporation focused on revitalizing its local geography, typically low-income, underserved neighborhoods that have experienced significant disinvestment.

CDFI Community Development Financial Institution provides affordable capital (primarily lending) to disinvested people and communities. Capital comes primarily from grants and low-interest loans from foundations, the government and banks.

CHARITABLE LOAN FUND Lightly regulated nonprofit that raises debt and grants from accredited and non-accredited investors to finance organizations that advance a charitable mission. Exempt from federal securities offering registration and in most states.

CORPORATE PHILANTHROPY Financial donations or in-kind support from corporations. Corporations may be inclined to support issues aligned with their corporate interests.

COMMUNITY FOUNDATION Tax-exempt charitable organization that distributes grants with a mission focus within a specific geographic area. Unlike private foundations, they have a broad, public donor base.

CREDIT UNION Financial cooperative owned and controlled by its depositors and providing its members with traditional banking services, including credit.

DIVERSIFIED BUSINESS FUND Fund whose investing activities are ancillary to some other purpose, such as being an incubator, accelerator or co-work facility.

DONOR-ADVISED FUND Charitable giving vehicle administered by a public charity created to manage donations on behalf of organizations, families or individuals. Donor retains advisory privileges over how money is distributed.

FAITH-BASED INSTITUTION Religious organization that may incorporate its values into decision-making criteria for its investing, grantmaking and procurement practices.

FAMILY OFFICE Entity established by wealthy families to manage their wealth and provide other services, such as tax and estate planning.

GOVERNMENT Direct, small business support from government may take the form of grants, low-interest loans, guarantees, technical assistance and policy programs effecting procurement and diversity practices.

IMPACT INVESTING FUND Institutional investors that evaluate investments based on financial and non-financial return objectives.

NON-ACCREDITED INVESTOR Investor with annual income below $200k ($300k for couples) and net worth less than $1M. They are frequently prohibited from making direct investments, with the exception of DPOS, crowdsourcing platforms and community funds.

PRIVATE FOUNDATION Tax-exempt charitable foundation that receives funding from one or a few high net worth individuals, families or corporations.It must grant 5% of its assets each year while a public charity may not.

REGISTERED INVESTMENT ADVISOR Person or firm that is registered with the State or Federal Securities Exchange Commission to provide investment advisory services to the public.

VENTURE CAPITAL Investors using pooled private capital to invest in early stage businesses. They typically take on higher risk, seek high returns and a 3-7 year exit. They may seek a controlling interest and assume an active role in governance.

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