Opportunity Selection Process

To curate our four Recoverable Grant Portfolios, the Boston Foundation and Social Finance undertook a three phase process to identify a set of nine organizations with strong track records of impact and financial performance from a list of 80+ potential opportunities.  

1. Landscape Scan: We conducted a comprehensive landscape scan to identify capital gaps in the Greater Boston ecosystem and where recoverable grant capital could be most powerful in advancing equity in our community. From this landscape scan, we identified 80+ potential opportunities.

2. Initial Vetting: For the highest potential opportunities surfaced in our landscape scan, we conducted an initial review to assess alignment with the following key criteria:

  • Focus on financial intermediaries and funds with track records: Because there is an expectation that recoverable grants will be returned, recoverable grants are most appropriate for organizations that have a business model that includes earned income. We focused on financial intermediaries like Community Development Financial Institutions (CDFIs) and funds with track records of returning capital to investors. These organizations invest in individual enterprises and impact-driven projects, allowing greater diversification of risk.

  • Focused on organizations that serve Greater Boston

  • Prioritized organizations working in alignment with TBF’s Our New Pathway, meaning they are focused on advancing equity in the region, with an emphasis on advancing racial equity

3. In-Depth Assessment: For the organizations most closely aligned with our criteria for impact and thresholds for financial risk, Social Finance then conducted in depth assessment across the following key areas:

  • Organizational Background & Impact (e.g., theory of change, key outputs / outcomes)

  • Programmatic Fit + Our New Pathway Alignment (e.g., DEI goals/focus areas, geographic alignment)

  • Detail on Activities Supported by a Recoverable Grant (e.g., loan terms, underwriting and loan management processes, lending portfolio analysis)

  • Financial Performance & Sustainability (e.g., asset composition, leverage, liquidity, net income, etc.)

  • Leadership & Management (e.g., experience, tenure, diversity, etc.)

  • Risks & Mitigants