For Investors
FAQs
How do I invest via a private foundation?
Private foundations can invest directly via a recoverable grant. A proposed grant agreement is available by emailing us at ted@beneficialreturns.com, calling us at (415) 994-6668, or using the form at the bottom of this page.
How do I invest via a Donor Advised Fund?
DAF holders should recommend a grant to Realize Impact and identify Truss Fund in the memo. Realize Impact is a Washington State non-profit that will handle all back office work including documenting the recoverable grant and confirming adherence with IRS regulations. At the end of the three year period Realize Impact will re-grant the recovered grant amount back to your DAF or to the non-profit of your choice. Email us at ted@beneficialreturns.com or call us at (415) 994-6668 or use the form at the bottom of this page so we can help you.
I want to support Truss Fund but I don’t have a family foundation or a Donor Advised Fund. What should I do?
Write a check to Realize Impact and identify Truss Fund in the memo. You’ll receive a charitable donation receipt for tax purposes. Realize Impact will charge a one-time $250 fee. At the three-year maturity, you can designate a domestic non-profit to receive the returned capital from the fund, less a 1% administrative fee charged by Realize Impact. Email us at ted@beneficialreturns.com or call us at (415) 994-6668 or use the form at the bottom of this page so we can help you.
How do Recoverable Grants work?
A recoverable grant is treated as a grant for your accounting and tax purposes. It counts toward the required 5% annual distribution of a private foundation. The recoverable grant is treated as a loan on the books of Truss Fund. At maturity, any funds returned to the original donor (if that donor is a private foundation) must be re-granted in that calendar year to any eligible non-profit.
How much should I expect back after three years?
Because we don’t know how long or how severe the virus will be, we cannot estimate how much of your grant you should expect back.
Who is behind the Truss Fund?
The Truss Fund is a mandate of Beneficial Returns, an impact investing loan fund that supports social enterprises addressing poverty in the developing world. Our portfolio includes loans to seven graduates of Miller Center for Social Entrepreneurship's Accelerator programs. We consider ourselves kindred spirits but we are not legally affiliated with Miller Center or Santa Clara University.
How much will you lend to each social enterprise?
We expect to lend $20,000 - $100,000 per social enterprise. To leverage our capital and increase the likelihood that the social enterprises will survive and repay our loan, we will require some combination of expense reduction by the social enterprises, matching loans or guarantees from other investors, and grants before we disburse.
What terms will you offer to the social enterprises?
All loans will have a six-month grace period and a 2% annual interest rate. Loans will be disbursed in two tranches. There will be no loan fees or documentation fees charged beyond a $50 wire fee. All loans will be structured with full repayment within 24 months of original loan disbursement.
How will you decide who to fund?
Our volunteer credit committee will decide. Because of the urgent nature of these requests, we will be basing our decisions on an assessment of the social enterprises’ capacity to repay our loan, the additionality of our support, and the projected impact that will be preserved with our capital.
How will Beneficial Returns be compensated?
Beneficial Returns will charge a 2% annual management fee on the amount lent. Additionally, Beneficial Returns will treat as income all of the interest that is repaid to the Truss Fund. All remaining money will be returned to the investors on a pro rata basis.
What happens if a social enterprise needs a grant rather than a loan?
Many social enterprises are ill-equipped to repay an emergency loan, even with the favorable terms that we are offering. We urge you to consider supporting these enterprises with direct grants.