Impact Investing
Photo courtesy of WholeTrees Structures
The Endowment continuously seeks ways to increase our impact to benefit the health and vitality of the nation’s working forests and forest-reliant communities.
Over time, we have evolved from supporting partners primarily through philanthropic grants to also using program-related investments (PRIs), equity investments, loan guarantees, and mission-related investments (MRIs). In 2021, the Endowment’s Board of Directors approved an impact investing pilot program allowing us to put more of our assets —in this case a small portion of our perpetually maintained endowment—in service to our mission impact.
Our goal with this new approach is to drive positive program impact in accordance with the Endowment’s three focus areas—markets, communities, and forests– through impact investing, the concept that strategically invested capital can achieve both a social outcome and a financial return.
The purpose of these investments is to support, sustain, and scale philanthropic causes that provide a sustainable, long-term benefit, while also achieving capital preservation and a positive financial return.
Our partner in this endeavor is the consulting firm Gordian Knot Strategies (GKS). GKS has helped the Endowment identify investment opportunities, develop program criteria, and invite and evaluate proposals.
Following a successful pilot phase, the Endowment’s Board approved funding in 2022 to launch an impact investing program and the following investments were made in 2024:
The three inaugural investments are:
- Northern Forest Center, Inc. – $1,000,000: The investment will help the Northern Forest Center move closer to its $30 million goal for the Northern Forest Fund, which finances the development of attainable housing across 10 communities in the Northern region. The region includes areas in Maine, New Hampshire, Vermont and New York. The investment will help the Center address housing shortages by funding projects that make housing affordable for median-income earners in these rural areas.
- WholeTrees Structures – $1,000,000: The funding from the Endowment will enable WholeTrees Structures to grow its sales force and expand its nationwide production capabilities to meet increased market demand for Solid Structural Timber (SST). In part, the re-opening of a previously dormant forest products facility in partnership with Seven Islands Land Company, the State of Maine, and other stakeholders. This infusion of capital will also build market confidence in SST, which is in strong demand for commercial construction and represents a high-value use of timber sourced from well-managed forests, the impact of which will benefit forest-reliant communities nationwide.
- Tanbark MFP – $1,500,000: This investment will support Tanbark’s expansion of its manufacturing capabilities for fiber packaging, allowing them to operate on a larger scale. Their packaging is a byproduct of working forests and helps eliminate plastic waste.
A second round of impact investing opportunities is anticipated for the winter of 2024/2025. Subscribe to the Endowment’s newsletter for information on all funding opportunities.