Impact Security: Reimagining Funding in the Nonprofit Sector
In 2018, NPX Advisors (NPX) reimagined funding in the nonprofit sector by introducing the Impact Security, a private pay-for-success model. The pay-for-success model has most commonly been used with government funding; investors provide money up front to a nonprofit, and if the nonprofit meets the targeted impact, the government pays the investors back with interest. With the Impact Security, if the impact is proven, a collection of donors pays the investors; if the impact is not proven, however, the donors instead redeploy their money into a new pledge. This model blends together traditional forms of investment in the nonprofit and for-profit sectors and provides a more flexible vehicle of investing in the nonprofit sector.
Left Behind Workers Fund | Distributing Grants to Unemployed Coloradans Who Lack U.S. Documentation During COVID-19
In response to this inequity, Impact Charitable established the Left Behind Workers Fund (LBWF) to provide direct cash grants of $1,000 to those who have lost employment due to COVID-19 but remain ineligible for state and federal aid. The LBWF designed a model to partner with local nonprofits across the state to disperse payments directly to undocumented Colorado families in need.