Capital Preservation Pool

The Capital Preservation Pool is a short-term investment option for donors and nonprofits with funds at SVCF. The pool is designed for assets to be distributed within 12 months or for funds seeking to avoid exposure to market volatility. The pool invests primarily in the Vanguard Federal Money Fund and laddered FDIC insured deposits at community banks and Community Development Financial Institutions (CDFI). Deposits at local CDFIs support responsible lending to low-income communities, sustainable businesses and job creation. Up to 5 percent of the pool may be invested in non-insured deposits.

Performance for calendar year 2016 was 0.3 percent, net of investment expenses, and equal to the pool’s benchmark of U.S. Treasury Bills. Investment expenses were 0.14 percent. Expenses include fund managers, custody, consulting and administration.

Community Impact

Asset AllocationA portion of the pool is invested in deposits at Community Development Financial Institutions serving the greater San Francisco Bay Area. These federally chartered institutions provide access to credit for low- and moderate-income communities, small businesses and nonprofits. Additional deposits are held at non-CDFI community oriented banks. At December 31, 2016, the pool held $110 million in deposits at the financial institutions listed below.

Community Development Financial Institutions

Beneficial State Bank – Beneficial State Bank provides traditional banking services, but with a focus on the traditionally underserved: low-income communities, sustainable businesses and job creation. SVCF’s deposits support lending to nonprofit organizations and businesses that typically find conventional financing out-of-reach, such as specialty agriculture, renewable energy, green building and low-income housing. Profits of the Bank are distributed to the Beneficial State Foundation which reinvests those proceeds back into the community. Beneficial is the second highest scoring B-Corporation in the United States, and among the top 5 in the world. B-Corps are for-profit companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability and transparency. Learn more.

Community Bank of the Bay – Community Bank of the Bay is dedicated to promoting job creation and economic revitalization by providing affordable deposit accounts and flexible financing to local businesses, nonprofits, schools and faith-based organizations. The bank’s Bay Area Green Fund supports financing of environmentally sustainable projects and businesses. SVCF deposits support lending to small businesses and nonprofits so they in turn can create
jobs and a more sustainable economy. Learn more.

New Resource Bank – New Resource Bank is a triple-bottom-line bank serving values-driven businesses and nonprofits that are building a more sustainable world. SVCF deposits support lending with an impact in four areas: environmental protection, health & wellness, education & community empowerment, and sustainable commerce. Learn more.

Self-Help Federal Credit Union – Self-Help promotes fair financial practices and provides responsible financial services to low- and moderate-income consumers, small businesses and nonprofits, with a focus on those who may be underserved by conventional lenders, including people of color, women, rural residents and low-wealth families. SVCF deposits support fair and affordable lending through Self-Help’s branches across California which includes a branch in East San Jose. SVCF also supports Self-Help with grants from the Community Endowment. Learn more.

Community Banks

East West Bank - East West Bank was originally founded to help those without existing banking relationships and to assist new immigrants establish themselves financially. This effort remains a primary focus of the bank today through its community reinvestment act lending and community programs. SVCF deposits support lending to consumers and small businesses in the Bay Area and beyond. Learn more.

Silicon Valley Community Foundation is not engaged in rendering legal, financial, or tax advice. Information in our publications and on our website is provided as a service to provide general information about charitable giving. Many topics related to charitable giving have complexities and nuances that cannot be adequately detailed in brief articles or announcements. Individuals’ personal situations may vary. Please consult your financial or legal advisor. Performance data is based on past performance and is no guarantee of future results. If you would like to report discrepancies with information presented, please contact us at info@siliconvalleycf.org.