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What’s the difference between charity and community investment?

Disclaimer: This post is a demonstration of our ‘Collaborative Conversations’ Forum. The information provided is based on examples of conversations our experts have had.

The company built a playground, donated jerseys, and funded a local BBQ. That’s great, but is that the same as community investment?

You’ve hit on an important distinction.

What you’ve described is corporate charitywhich can be appreciated, but often lacks strategy or long-term value. Community investment, on the other hand, is:

  • Linked to project impacts or benefits
  • Designed with community input
  • Focused on measurable outcomes, not just good Public Relation (PR)

At  All Things Social Impact, we advocate for transforming Community Development Funds (CDFs) into Community Investment Funds (CIFs), where funds are allocated based on needs identified in the Social Impact Assessment, and where return on investment (for both the community and company) is tracked over time.

Would you like to see a sample Community Investment Framework?

Yes, that would be great—especially if it helps make a case to the company.