The Power of the Guarantee

When it comes to impact investing, a financial guarantee is a tool that can make powerful change happen in communities, without requiring investors to part with cash upfront -- or maybe ever. By guaranteeing an investment, social good investors create a backstop and eliminate risk, allowing others to feel comfortable putting their dollars into play. The Kresge Foundation has issued more than $31 in guarantees and has committed to making $150 million in guarantees by 2020. Watch this video to understand more about this special, yet underutilized tool.