Impact Crowdfund Investing Aligns With Rotary's 4-Way Test and 7 Areas of Focus
Rotary Influences My Work in Leading the Impact Crowdfunding Movement
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About a dozen years ago, I joined the Salt Lake Rotary Club and became a Rotarian. I joined precisely because Rotary aligns so well with my work and vision for a better world. Other organizations like Lions and Kiwanis have similar social missions and impact.
Today, I want to highlight the alignment between the work that Rotary International does through its 46,000 clubs and 1.4 million members around the world and the impact crowdfunding community we support through the SuperCrowd.
Service Above Self
Rotary is famous for its motto, “Service Above Self.” I believe this guides my work. In the world of impact investors, there is a subset of folks who think of themselves as “impact first.” For us—and yes, I count myself in that group—impact is the top priority. Expressed another way, social impact above self.
That said, Rotary would not argue that you should bankrupt yourself by doing service. Similarly, I see the need to make money on investments even if and when—and in part because—impact is the top priority.
The 4-Way Test
Rotary International adopted a code of ethics called the 4-Way Test in 1943. Here it is:
Of the things we think, say or do
1. Is it the TRUTH?
2. Is it FAIR to all concerned?
3. Will it build GOODWILL and BETTER FRIENDSHIPS?
4. Will it be BENEFICIAL to all concerned?
This guidance aligns well with impact crowdfunding. The goal of investing to support social entrepreneurs, diverse founders and community builders is to foster better, stronger local communities. It is also intended to create a more peer-like relationship between investors and entrepreneurs.
Many conventional forms of finance, including angel investing and venture capital, reinforce power dynamics that may not build better friendships or goodwill. We can and should look to build relationships on foundations of truth, full and fair disclosure and mutual respect.
Impact crowdfunding is a movement exemplified by the SuperCrowd that aligns perfectly with the goal of a Rotary Club to build better communities, solve problems, and strengthen bonds of friendship across traditional political and social boundaries.
Rotary’s 7 Areas of Focus
Rotary International lists seven “causes” that are known to many Rotarians as its areas of focus (though I don’t believe that label is official). Quoting verbatim, the seven are:
Promoting peace
Rotary encourages conversations to foster understanding within and across cultures. We train adults and young leaders to prevent and mediate conflict and help refugees who have fled dangerous areas.
Fighting disease
We educate and equip communities to stop the spread of life-threatening diseases like polio, HIV/AIDS, and malaria. We improve and expand access to low-cost and free health care in developing areas.
Providing clean water, sanitation, and hygiene
We support local solutions to bring clean water, sanitation, and hygiene to more people every day. We don’t just build wells and walk away. We share our expertise with community leaders and educators to make sure our projects succeed long-term.
Saving mothers and children
Nearly 6 million children under the age of five die each year because of malnutrition, poor health care, and inadequate sanitation. We expand access to quality care, so mothers and their children can live and grow stronger.
Supporting education
More than 775 million people over the age of 15 are illiterate. Our goal is to strengthen the capacity of communities to support basic education and literacy, reduce gender disparity in education, and increase adult literacy.
Growing local economies
We carry out service projects that enhance economic and community development and create opportunities for decent and productive work for young and old. We also strengthen local entrepreneurs and community leaders, particularly women, in impoverished communities.
Protecting the environment
Rotary members are tackling environmental issues the way they always do: coming up with projects, using their connections to change policy and planning for the future.
These seven causes can all be supported with impact crowdfunding investments. Below each of the seven headings I’ll repeat, I’ll share a past or current crowdfunding campaign that gives ordinary investors the opportunity to invest for impact in a way that aligns with the Rotary area of focus. Within each area of focus, in a given year, there are typically many opportunities to invest.
Promoting peace
CoPeace is a company that embodies impact crowdfunding’s potential to influence peace. By using what peace professionals call positive peace, working to address social problems that underly conflicts, we create a more peaceful world.
Fighting disease
C-Reveal Therapeutics is developing cancer treatments utilizing technology developed at Harvard with the potential to enable a patient’s own immune system to identify and fight cancer itself, making many cancer treatments more effective.
Providing clean water, sanitation, and hygiene
Aqua Research is developing an affordable disinfectant for treating water in the developing world, where millions still die from water-borne infections. I invested in this one.
Saving mothers and children
Tampon Tribe sells healthier feminine hygiene products; it has used crowdfunding to support all of its capital needs. I invested in the latest round. Women raising via crowdfunding receive a much higher percentage of funding than they do via other channels, especially venture capital, where they receive only 2 percent. Supporting any woman founder is a great way to support women and children.
Supporting education
Lil’Libros is a company founded by two women to create bilingual books and other educational materials. The company is thriving, and its products are now in the market.
Growing local economies
The Drivers Cooperative is a driver-owned alternative to Uber that guarantees $30 per hour wages as a minimum to working drivers. The company is raising money to fund continued growth to help liberate drivers from the extractive business model employed by the big alternative. This is a way to directly support healthy economic development. Impact crowdfunding is a great way to support a wide variety of small businesses that are essential to a thriving local community. I invested in this one, too.
Protecting the environment
Raise Green is itself a crowdfunding portal that raised money via crowdfunding. It lists only environmentally friendly offerings, primarily in support of climate solutions. The economic shift to renewable energy is creating tremendous demand for capital and associated opportunities for investing.
As you can quickly see, there are opportunities to invest for impact in ways that align perfectly with Rotary’s values.
If you’re not a Rotarian, this may not mean much to you, but consider many of your friends, neighbors and community leaders are. They are guided by these values. I encourage you to consider joining Rotary for the opportunity to serve your own community and global causes at the same time.
If you are a member of Rotary, I invite you to join the SuperCrowd, by subscribing, learning how to invest for impact, and starting your journey. You are welcome to join the Impact Cherub Club, a group of people from the SuperCrowd who actively invest small amounts. Some of us are Rotarians.
Upcoming SuperCrowd Event Calendar
If a location is not noted, the events below are virtual.
SuperCrowdHour February with the CfPA Executive Committee: This free event on February 21, 2024, at 1:00 PM Eastern, features President Brian Christie, Vice President Jenny Kassan, Secretary Brian Belley and Chair Scott McIntyre. Learn how you can join and make a difference. Earn rewards!
SuperCrowdBaltimore, March 21, 2024 This in-person event at the B&O Rail Museum features some of Baltimore’s prominent citizens and community leaders. Save 30 percent with the discount code “SuperCrowd.”
SuperCrowd24, April 17-18: This two-day virtual event is our biggest event of the year. Don’t miss it. Save 50 percent with the discount code “SuperCrowd.”
SuperCrowdChicago, June 12, 2024. Save the date! More information is coming soon!
SuperCrowd Community Event Calendar
If a location is not noted, the events below are virtual.
CfPA Webinar: A Conversation with Brendan Ballou, Author of Plunder, January 31
Crowdfunding & SBA Lending with Kathleen Minogue of Crowdfund Better, February 6
Neighborhood Economics, February 26-28 in San Antonio, Texas
If you would like to submit an event for inclusion on our community calendar, click here.
Impressive insights into the alignment between Rotary International's values and the impact crowdfunding community. Your commitment to "Service Above Self" resonates with the 4-Way Test and the seven areas of focus. The examples of impact crowdfunding investments perfectly mirror Rotary's goals.