Bon Secours Health System Inc., one of the largest Catholic health systems in the country, has invested $1.6 million in Calvert Foundation, a nonprofit that provides low-interest loans to help underserved communities that lack access to traditional financial services.
BSHSI, a $2.6 billion not-for-profit employing more than 20,000 people in seven states, wants to invest in several communities where they have a strong presence, such as Baltimore, New York City, and Richmond, Va., as well as impoverished communities in developing countries, such as Peru.
The health system is targeting its investment to support loans to groups such as: Seedco, which runs a welfare-to-work program in New York City; Enterprise Community Partners, which provides affordable housing in Baltimore; Consolidated Bank & Trust, which invests in community facilities in such places as Richmond and Hampton Roads, Va.; and Peru-based Edyficar, which provides microfinance services to help those who are poor and marginalized pull themselves out of poverty.
Richard J. Statuto, president and CEO of BSHSI, said the health system is supporting organizations whose work aligns with BSHSI’s mission to help those in need and the social teachings of the Catholic Church.
“We were looking for a way to make a difference in these difficult times, and still make smart decisions with our own assets,” said Statuto. “Access to credit is critical in today’s economic environment, and this investment allows us to preserve capital and receive a modest return while accomplishing our social mission.”
BSHSI made this investment through Calvert Foundation’s Community Investment Note, a product that straddles philanthropy and investment, providing a way for investors to earn a financial and social return.
The Note is available for terms of one to 10 years and at rates of 0 to 3 percent. According to Shari Berenbach, president and CEO of Calvert Foundation, investors often choose the lower rates, realizing that sacrificing some interest income helps lower borrowing costs for the nonprofits doing important work in communities.
“Investors may be pulling money out of the stock market, but they are still putting it into their communities and other communities in need around the nation and world,” said Berenbach.
Bon Secours Health System owns, manages, or joint ventures 18 acute-care hospitals, one psychiatric hospital, five nursing care facilities, five assisted living facilities, and 15 home care and hospice programs.
Calvert Foundation is a 501(c)(3) nonprofit organization and uses capital from over 5,000 investors to provide affordable loans to nonprofits, microfinance institutions, Fair Trade coffee cooperatives and social enterprises – all of which cannot typically qualify for or afford financing from traditional banking sources.
Photo by William Pfingsten, courtesy of HMdb.org.