The daily news is dominated by gloomy headlines about global financial markets. What we don’t hear about is a small but growing movement called community investing. It is not new. In fact, it pre-dates big banks and stock exchanges. But it is still mostly below the radar of mainstream media. What exactly is community investing—and why is it so urgently needed now?
Defining Community Investing
Community investing is when everyday people—not just wealthy individual and institutional investors—get the chance to invest in the businesses, projects, and leaders they believe in. It’s not charity. It’s not crowdfunding perks. It’s actual investment with the potential for financial returns.
And it’s legal. Yes, it is necessary to choose a compliance strategy under state and federal securities law which requires that the entity raising funds jump through some legal hoops, but legal developments in the past decade are providing more options and tools.
Unlike mainstream investing in public markets, which funnels money into distant, impersonal markets, community investing roots capital in local soil—supporting small businesses, cooperatives, affordable housing projects, and local infrastructure.
Why the Urgency Now?
1. Bridging the Wealth Gap
Community investing democratizes the playing field by enabling everyday people—not just accredited investors—to participate in wealth creation and economic development.
2. Revitalizing Local Economies
When we invest locally, dollars stay in the community longer. That means more jobs, stronger small businesses, and a more resilient local economy. According to studies, local businesses recirculate more money into the community than chain retailers or corporations do.
3. Building Community Power
Economic power equals political and social power. By enabling communities to control more of their own capital, community investing shifts influence away from extractive financial institutions and into the hands of neighbors and entrepreneurs who understand their community’s needs.
4. Creating More Resilient Systems
As global systems face increased disruption—from climate change to economic instability—locally rooted solutions are proving to be more agile and adaptive. Community investing nurtures ecosystems of mutual support, reducing dependency on volatile external markets.
How to Get Involved
- Look for local investment opportunities
- Talk to your financial advisor – if they are unable to help you invest in your community, look for a new one!
- Form a community investment club – recruit your friends and divide the due diligence duties.
Start small. Start local. But start. Your money has power—use it to shape the future you want to see.
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