Notes From the Leading Edge of Social Finance
“The era of Wall Street domination is over.” So begins a GreenMoney Journal article that RSF Social Finance President & CEO Don Shaffer wrote in early July, at a time when only the first of the economic dominoes had fallen. (To revisit the actual chain of events, check out this comprehensive and interactive timeline from MSNBC: The Economy in Turmoil.) But rather than dwell on problems or place blame, Don’s article is filled with hope for a future in which we re-imagine money to serve our highest aspirations.
“If today’s capital markets can be described as complex, opaque, and anonymous - based on short-term outcomes, we are beginning to see more and more financial transactions that are direct, transparent, and personal - based on long-term relationships.”
In addition to delving into the unique role of RSF as a trusted financial partner that is helping shift the field of social finance, Don writes about three women who inspire him, each powerful change agents in this emerging financial system. He also highlights several social entrepreneurs who are part of this change, and invites everyone to engage with RSF in an ongoing inquiry into the nature of money and the ways in which it can genuinely transform each of us, and the world we live in. Download the article here, or visit the GreenMoney Journal website.
As a mission-based, nonprofit financial institution, RSF has always operated with deep attention to the social benefits that our activities can catalyze in the world around us. We seek to create financial transactions that are direct, transparent, and personal, based on long-term relationships.
Not only does this strategy further our mission, it serves our investors well during rocky economic times. As Don pointed out in a recent letter to clients, “RSF has made over $150 million in loans since 1984, creating enormous positive impact, and not lost a penny of your investment in us. Our default rate is extremely low (less than 1%). Our leverage ratio is 2:1, versus 10:1 for most commercial banks, and over 25:1 for the (former) investment banks. We have more than adequate liquidity and reserve funds.”
“RSF is unique, in what we do and how we do it. I hope you will consider adding to your investment account this year, knowing that we see more and more inspiring people every week who believe we represent the best possible financial partner for them – our only constraint is the amount of funds we have to lend.”
Tuesday, October 21st, 2008