Glossary
A process whereby foundations directly invest some of their assets in community, or social/environmental enterprises consistent with their mission. These investments may be below-market program-related investments or market-rate mission-related investments. This term is used in Canada and is explored here.
Method of analysis that utilizes the comparison of an organization to industry standards or similar organizations to identify questions or determine which logical conclusions a data set supports.
A promise to give that depends on the occurrence of a specified future and uncertain event to bind the promisor.
A loan to the developer of a project which covers the construction costs. Typically, these loans are short-term (i.e., one to three years). At the time of occupancy, the developer uses a long-term loan, known as permanent financing, to pay off the construction loan.
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/responsible business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms, and sometimes goes beyond to support or achieve social good.
In the loan context, a clause in a loan agreement in which a party promises to do, or to refrain from doing, certain things while the loan is outstanding. Covenants that require a party to do something are called "affirmative covenants." Those that prohibit certain actions are called "negative covenants." Covenants are designed to protect the lender's interest.
An agreement governing the relationship of the lender and the borrower.
Actions which improve the credit profile of a deal, e.g. a foundation provides a guarantee, over-collateralizes, establishes a reserve account, or acts as a subordinated lender.
Formal evaluation of an organization's credit history and capability to repay obligations.
The collective effort of individuals who network and pool their money, usually via the internet, to support efforts initiated by other people or organizations. Crowd funding is used in support of a wide variety of activities, including disaster relief, startup company funding, inventions development, scientific research, and civic projects.
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