Socially Responsible Investing

Question: What expenses associated with socially responsible investing should be reporting as community benefit.

Recommendation: We recommend counting the following expenses under Community Building, F7. Advocacy:

  • Dues, grants, and gifts to organizations that support social justice (such as NETWORK)
  • Cost associated with advocating for social justice, environmental responsibility, and human rights (such as fair treatment of workers) through investments as shareholders, including:
    • Dues to organizations such as the Interfaith Center for Corporate Responsibility
    • Voting proxy Management Fees
    • Consultant fees
    • Staff time

We recommend not counting:

  • Normal investing costs; only additional costs specifically related to socially responsible investing should count as community building
  • Investment losses related to socially responsible investing, that is the difference between what the investment returns as opposed to traditional investing.

(Updated November 2015)

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.