At Revalue, we believe that investing can and should reflect who you are and what you care about. One of the ways we help make values-aligned investing possible is through support for clients exploring community investing. For over a decade, we’ve offered education, shared resources, and developed processes to support those interested in making community investing part of their broader strategy.
What exactly is community investing? In this post, we’ll explain what it is and where it came from. If you're curious about how it might fit into your own portfolio, be sure to check out Part 2 of this series for more.
What Is Community Investing?
Community investing refers to investing your dollars directly into businesses and organizations that operate in and serve local or regional communities. These may include privately held businesses, real estate projects, or loan funds working to expand access to resources (examples may include investing in a local farm, cooperative business, affordable housing project, or a community loan fund). These investments can allow individuals to support local development, create social or environmental impact, or foster a more inclusive economy.
All investments come with risk, and community investing is no different. However, how the risk is evaluated can differ significantly from public market investing and has its own set of complexities. Because there is no secondary market for community investments, your money is tied up (aka illiquid) until a stated maturity date. This means that you cannot sell your shares and access your money in the same way you can with public market investing. If this type of risk fits into your financial plan, community investing is a way to circulate money in your own backyard and directly support the businesses you care about.
Since community investing does not often come up in traditional finance conversations, finding educational resources or a support system can be difficult. Revalue not only compiles these resources but also brings together a community of like-minded investors and a service team equipped to support your community investing journey.
A Brief History of Community Investing
Community investing is not a new idea. Historically, many individuals kept their wealth local—investing in neighborhood banks, supporting nearby businesses, or pooling resources through cooperatives. But over the last century, financial systems shifted toward centralized models that concentrate capital and limit access for everyday investors.
In the U.S., regulatory changes during the 1930s and 1940s created barriers to direct investing for most people, reserving access to private investments largely for high-net-worth individuals. Over time, this created a gap in both access and opportunity that persists today.
Recent changes, including the 2012 JOBS Act, have started to open new doors. More individuals, including those who are not accredited investors, can now legally participate in some private offerings. While these options are expanding, the community investment landscape remains nuanced and requires care in evaluating risks, returns, and fit with one’s broader financial plan.
At Revalue, our role isn’t to dictate what the future economy should look like. Instead, we aim to help more people participate in shaping it. Community investing is one of many tools that can be used thoughtfully and intentionally, depending on your goals and risk tolerance.
Read Part 2 here
