It’s no wonder that impact investors (ok, nearly all investors) are being cautious with how they deploy capital in the United States these days. Uncertainties driven by shifts in federal policy, significant public sector employee reductions, and large pullbacks in federal funding make this a tumultuous time – especially for those investors with an interest in seeing both financial and social impact returns. 

There is increasing recognition that social drivers of health are often most effectively addressed at the community level, by trusted organizations with local roots. While traditional healthcare providers can play a critical role, local community-based organizations (CBOs) deliver incredible value in geographies rural, metropolitan, and everywhere in between. But across the board the compensation that CBOs earn through government contracts, fee-for-service reimbursement, and other sources falls far short of both the costs they incur and the actual value they produce.