Place-based impact investing refers to the local deployment of impact capital – that is, investments made with the intent to yield both financial and social and/or environmental returns—to address the needs of marginalized communities. Foundations, CDFIs, private investors, and others can affect beneficial changes in their city, state, or region through their direct impact investments as well as by influencing larger systemic changes through influencing other forms of capital and empowering local entrepreneurs and community stakeholders.
The Urban Institute, in collaboration with the John D. and Catherine T. MacArthur Foundation and Mission Investors Exchange, is developing an evidence-based toolkit to advance the concept and inform the practice of place-based impact investing. This project focuses on understanding the roles of foundations and collaborative models in nurturing the development of place-based impact investing efforts. Read more about this effort in the project fact sheet.