How It Works

Philanthropies are constantly seeking new ways to leverage their philanthropic commitments towards their mission, and financial guarantees represent an innovative method for doing more with their balance sheets without compromising philanthropic commitment integrity. Difference-making projects across the country often struggle to secure the capital they need from traditional financial institutions. To get off the ground, they might require a guarantee from an established partner to unlock capital to the places where it’s needed most; philanthropies can be that partner.

Philanthropies are community lenders’ ideal guarantors, and by providing a financial guarantee to a project in need, a philanthropy places itself in a position where its philanthropic commitment dollars can go farther, becoming a bridge between socially beneficial projects and the funds to get them off the ground. While different philanthropies have experimented with incorporating guarantees into their social investment practice, CIGP expands that process by establishing a single clearing house for transactions, allowing guarantors to combine their resources and funnel commitments efficiently.