The Power of Impact-First Investing
In 2023, the Boston Foundation invited its Donor Advised Fund (DAF) holders to engage in impact investing through a unique Recoverable Grants Pilot. Impact investing expands philanthropists’ toolkits, giving them the opportunity to have a powerful impact today with the funds they would otherwise have invested for long-term charitable giving.
TBF offered four thematic portfolios to fund advisors, each with the potential to recover up to 100% of their capital at the end of six years. The portfolios included pre-vetted, local organizations with a strong record of advancing equity in our community.
A total of $6,095,000 was invested across the portfolios. This is a summary of the funds invested in each of the portfolios and the work being supported by those investments, as the Pilot completes its second full year.
BIPOC Small Business Lending
Through this portfolio, a total of $1,537,500 was invested in four organizations:
Ascendus
$384,375
100% of the funds have been deployed and some of the funds have been repaid and deployed again. A total of $589,195 has been invested in 25 entrepreneurs of color across Greater Boston.
Ascendus has leveraged TBF funds by more than one and a half times, expanding access to affordable, flexible capital for entrepreneurs of color across Greater Boston. The average loan size was $23,500, with each microloan tailored to meet the specific needs of the individual entrepreneur. Among the 25 recipients, 40% are women and 76% were born outside of the United States—reflecting the diversity and resilience of Greater Boston.
Local Enterprise Assistance Fund
$384,375
At the end of FY25, LEAF's total small business portfolio had 27 active loans with direct capital deployment exceeding $3.6 million, and 2 loans committed for $450,000. TBF funds directly supported 8 of these loans.
LEAF has provided personalized support ranging from developing robust financial projections and strategic growth plans to navigating complex investment decisions and strengthening their balance sheets. More than 1,000 people have attended LEAF workshops and 67 small businesses experienced a growth in revenue since receiving capital and/or services.
Nectar Community Investments
$384,375
Over the past 2 years, Nectar has sought to increase capital deployment to both small business owners and homeowners. Despite interest rate challenges, Nectar was on track to deploy a total of $7 million in 2025, representing a 67% increase over 2023 deployment. Funding from the TBF Recoverable grant supported this increase by enabling the deployment of 5 additional low-cost, flexible loans.
To date, Nectar has provided more than 800 businesses with 1-on-1 technical advisory services through the high touch Business Equity Initiative (BEI) program as well as $13.25 million in loans to small businesses, more than 80 percent of which are BIPOC-owned.
Massachusetts Housing Investment Corporation
$384,375
Over the past two years, MHIC has financed nearly $8.6 million in factoring construction contracts for two BIPOC subcontractors, supporting the development of 244 affordable and mixed housing units in Greater Boston.
Construction of those units is ongoing, with one subcontractor highlighting increased business capacity and an increase of subcontractor staffing, as the TBF investment enabled the contractors to take on jobs that otherwise they would not have had the resources to pursue.
Climate Justice
Through this portfolio, a total of $1,737,501 was invested in four organizations:
Capital Good Fund
$579,167
The Capital Good Fund has deployed 157 DoubleGreen Weatherization loans across MA, totaling $2,099,634. The loans have enabled homeowners to access previously unaffordable financing for energy-efficiency upgrades.
The loans have facilitated projects that reduce carbon emissions by supporting weatherization, insulation, HVAC upgrades, and solar installations that lower energy consumption, reducing household energy costs and carbon emissions while creating and retaining jobs for local contractors and energy-efficiency service providers.
Massachusetts Housing Partnership
$579,167
Through MHP’s partnership with the Community Economic Development Assistance Corporation (CEDAC), TBF’s Recoverable grants is helping to fund decarbonization predevelopment work at seven properties in Greater Boston, each of which is expected to be repaid in 2 years when the properties close on their permanent construction financing.
Initially intended to be used to meet MHP’s pledged collateral requirement for bank-financed loans in the Green and Healthy Housing program, the funds were reallocated after MHP received a $10.26 million federal Capital Magnet Fund (CMF) Award, enabling MHP to scale up their impact by offering predevelopment loans through CEDAC.
Sunwealth
$579,167
Through the Solar Justice Fund, Sunwealth has deployed more than $16.6 million of capital across three key areas: development capital, construction capital, operational capital. Through TBF’s investment, Sunwealth has expanded their reach to serve developers and projects typically overlooked in the solar industry.
Sunwealth estimates that carbon emissions have been reduced by 1.6M tons and 2,069 solar jobs created as a result of organizational activities. 62% of the portfolio has been deployed to benefit low-to-moderate income communities.
Equal Opportunity for Families
A total of $1,257,500 was invested in two organizations:
Ascendus
$628,750
To date, 21 childcare entrepreneurs in Greater Boston have received a total of $560,115 in capital through the Childcare Provider Initiative. Most entrepreneurs are women and fall in the low-to-moderate income bracket. 57% of loan recipients were born outside the United States.
In 2024, the businesses served created local employment and opportunities, creating or retaining 34 jobs and providing childcare for over 120 children – and unlocked new opportunities for growth, stability, and long-term sustainability for their businesses.
Jobs for the Future
$628,750
JFFVentures Pilot Fund (formerly ETF@JFFLabs, or JFFVentures Fund I) currently maintains an active portfolio of 40 companies, across recoverable grant, debt, and equity investments. the fund is focusing resources on strategic growth initiatives and comprehensive support for existing portfolio companies to maximize returns and ensure a return of capital at the fund's conclusion.
Across the portfolio, 82% of founders identify as members of populations that are underrepresented in the venture capital industry, including founders who identify as people of color, immigrants, or women.
Equitable Housing
A total of $1,562,500 was invested in three organizations:
Local Enterprise Assistance Fund (LEAF)
$520,833
As of the end of FY25, LEAF is moving towards the closing of a $1 million refinancing for Boston Neighborhood Community Land Trust (BNCLT). This collaboration with TBF has enabled LEAF to provide BNCLT with access to long-term permanent financing at low rates, supporting future acquisitions and additional capital.
BNCLT will operate with greater stability and predictability, which will in turn, facilitate BNCLT's ability to expand the land trust.
Massachusetts Housing Investment Corporation (MHIC)
$520,833
Over the past two years, MHIC has provided affordable housing developers with $3 million of early-stage financing. Two of the three developers that received financing are minority-owned firms. The investment has supported the development of 85 affordable/workforce units in predominantly minority, low-income neighborhoods. Two loans have been repaid, and the money was recycled to broaden the impact.
Massachusetts Housing Partnership (MHP)
$520,833
TBF capital is providing top-loss protection for a new Emerging Developer Working Capital Line of Credit (EDWCLOC) program launched in August 2023 for loans that present a higher credit risk profile than loans under the existing program, which typically focus on well-established development entities.
MHP is using the $520,833 as a dedicated loan loss reserve and limiting volume under the Program to $2.5 million. MHP has approved and closed on financing to four emerging developers, for a total of $950,000 in funding.