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A Year of Growth
December 2010
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Greetings!
 

I hope your year is coming to a peaceful close.  As it is an opportunity to take stock, we took time recently to interview our current investors and reflect on what makes Contact Fund work for them.


First, it's important to keep in mind that Contact Fund investors come from different professional and socio-economic backgrounds with varied motivations and expectations. While some are inspired by the opportunity to use a private investing approach to create a new source of 'social capital,' others are compelled by the chance to go beyond grant-making to affect social change. For a few, an investment in Contact Fund is a deliberate commitment to advancing a social good; for many others it is one step in an evolving approach to social engagement and philanthropy.


The one thing they all have in common is intent to use their investments to satisfy a desire for both financial gain and philanthropic expression. However, this work has predominantly been supported by large institutional investors such as governments, pension funds, banks and large philanthropic foundations.  Contact Fund and others are changing that by engaging the individual and small institutional investor in new ways, shaking up the current model and being a disruptive force for positive change. We invite you to learn more about two such investors - North Star Fund and Triskeles Foundation - two of our most recent noteholders.
 

In this era of financial uncertainty, sustainability is critical. Our investors are interested in the sustainability of both Contact Fund as a young enterprise and the organizations to which we lend.  We are proud to have demonstrated financial stability through the recent crisis, and we are honored to work with the underlying organizations that have enabled that performance.


Most importantly, our investors expect their investment to have a strong, tangible, positive impact in New York City. They believe that the future will offer more opportunities to invest in mission-oriented organizations, but they want to see the model demonstrated. This type of investing is not a replacement for philanthropy, it is a complement to it.


A recent report by Hope Consulting, Money for Good, suggests that there is an untapped $120 billion US market for individual investors seeking a positive environmental and social impact with their dollars.  We share our investors' belief that investing with a social purpose will continue to flourish, and we will be right there along with it, representing the voice of the individual and smaller institutional investor.


In fact, our ability to build stronger local communities in New York City will only be possible to the degree we can continue to engage additional investors. We look forward to sharing some exciting opportunities in 2011 and hope you will consider joining us for what already looks be a year of growth for both Contact Fund and our borrower organizations.



With warm wishes,


Mark and Jen

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Investor Profiles -
North Star Fund and Triskeles Foundation

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Contact Fund was proud to announce its two first institutional investors in the September round of investor notes.  To help our community get to know these organizations better, we conducted interviews with leaders at the organizations to find out what is unique about each and why Contact Fund was a fit for them.


 The following articles are based on interviews with Clemens Pietzner, President of Triskeles Foundation and Jason Franklin, Investment Committee Chair of the board of the North Star Fund 


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By the Numbers
114%
Increase in noteholders since December 2009

$1,140,000
Investor notes outstanding

4
Contact Fund loans repaid to date
6
Loans in current portfolio

$762,000
Investor dollars recycled into new loans since 2005