Become an impact facilitator.

 
The use of guarantees is not new in impact investing, but this valuable tool is extremely underutilized. Increased awareness of successful examples of investor collaboration through guarantees – and blended capital more broadly – could help spur much-needed, additional investment into solutions to pressing social and environmental problems.
— Amit Bouri, CEO and co-founder of the GIIN

The Guarantors

Guarantors are a key part of the Good Returns model, acting as true facilitators of impact. They are essential to both driving the investment of new capital and to enabling stories of real change to be created, told, and shared.

By partnering with innovative foundations, philanthropists, and impact investors, Good Returns provides a guarantee to ensure interest-free cycle capital will be returned to participating companies. These guarantees enable companies to leverage financial resources that would otherwise remain dormant, unused for good in the world.

The Process

The Good Returns Guarantee Program presents a unique, innovative way for individuals and institutions to leverage their capital for impact without requiring the actual transfer of assets during a cycle.

Guarantors enter into a commitment for a minimum of 2 years and designate a specific amount they would like to guarantee. Guarantors instruct their financial institution to issue us a standby letter of credit (SBLC) which backs their commitment and enables us to provide security to participating cyclers.

By providing a SBLC, guarantors are able to leave their capital invested with their current financial institution.

Good Returns uses the cumulative guarantee amount from all guarantors to mobilize more capital in order to serve humanity and to facilitate impact through its model.

Should an impact organization be unable to return cycle capital on time, each guarantor makes a tax-deductible contribution (a “call”) to cover part of the deficiency. All guarantors share the cost proportionally, so a call will never exceed the amount that each guarantor has committed and will usually be far less, or zero when all cycle funds are repaid.

This innovative approach enables guarantors to remain invested for a financial return while leveraging their assets for maximum impact - scaling sustainable solutions for humanity’s greatest challenges.

GIVS Accounts

Good Returns has partnered with financial institutions to provide a second way for high net worth individuals to participate in the Good Returns guarantee program: Guarantee-Investment-Values Strategies, or GIVS.

GIVS are hedge fund investment strategies. Each GIVS investor also designates an amount from their account to serve as guarantee capacity for Good Returns cycles. 

Here's an example:

  1. A guarantor commits to a guarantee amount. The guarantor provides a standby letter of credit from their bank, or they open a GIVS account.
  2. Participating companies provide capital to Good Returns for cycling.

  3. Good Returns delivers the capital as zero-interest loans to top vetted impact organizations, who use the capital to scale their sustainable programs.

  4. We create powerful impact stories and utilize the companies’ resources to reach large audiences – creating even more good by increasing awareness and participation at no cost to impact organizations.

  5. After one year the impact organizations return the capital. If any capital cannot be returned, each foundation makes a grant to Good Returns for its proportional share of the deficiency.

  6. Good Returns provides the capital back to the participating companies, which can then donate to a local charity or cycle again.

  7. The guarantor receives impact reports detailing the results created by their participation in the guarantee process.

 

When all loans are repaid by Impact Organizations, guarantors incur no default costs at all, and their capital has remained invested throughout the process. Even if a default occurs, the cost is spread among all guarantors. Good Returns guarantors can facilitate the movement of new capital into the social sector at little or no cost. 

 
 
 
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Become a
Good Returns Guarantor

Fill out the form to get more information on becoming a Good Returns Guarantor. We'll be in touch with next steps and a quick questionnaire to get a better sense of how Good Returns can partner with your organization to build a better world.

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