Alternative Investment Advisory Committee

History
The Alternative Investment Fund was established in 1983. This fund was coordinated by the Corporate Responsibility Advisory Committee (CRAC), along with their work on shareholder actions. With the growth of the alternative investment movement and increased opportunities to use our resources for socially responsible investments, it seemed advisable to establish separate committees to focus on alternative investments and shareholder actions. Thus, in 1990, CRAC was divided into two new committees: 1) the Shareholder and Consumer Action Advisory Committee (SACAAC) which was formed to coordinate our shareholder actions, and, 2) the Alternative Investment Advisory Committee (AIAC) to coordinate our alternative investments.

The initial purpose of AIAC was to make recommendations to the Prioress and Council (leadership team of the Congregation) regarding investments to lower than market rate return projects having a human development purpose. In recent years, the responsibility of the committee has expanded to include making recommendations to the Prioress and Council regarding sustaining donations and to manage the small loan fund. The General Finance Office for the Congregation works very closely with AIAC.

Committee members (from left) Sr. Marie Condon,
Sr. Bev DiStefano, Larry McWilliams, and Sr. Colleen
Settles share a light moment during their work
on investments.

Committee members (from left) Srs. Rita McCloskey
and Lucy Gardner

Statement of Philosophy and Commitment
The Sinsinawa Dominican Constitution reminds us that “Dominic’s exhortation to ‘possess voluntary poverty’ challenges Dominicans of all times to make responsible choices according to the Gospel ideal and our mission purpose.” Our times are challenged further by the U.S. Bishops’ Pastoral, Economic Justice for All, which emphasizes the importance of responsible choices in a complex and powerful economy. This Pastoral recalls that the early Church proposed the proper use of possessions to alleviate need and suffering, rather than universal dispossession. Related to this proper use, the Pastoral calls church institutions with investments to see that their funds are used responsibly, praises alternative investments that meet local and regional needs, requires public accountability, and encourages creative use of church resources and facilities to serve the poor. It is in this context and with commitment to these values that we respond to the challenges of making responsible choices in our times and establish this alternative investment fund.

Therefore we commit ourselves

to place a portion of our investments in alternative investments, i.e., projects that have a social purpose of enabling the economically oppressed to develop themselves; and to have as a goal $1 million for alternative investments. (This goal was reached in 1998.)

Investment Projects
The types of projects that AIAC recommends vary. A significant amount of our investments are with intermediary organizations. These are organizations that loan money to people or businesses that otherwise would not qualify for a conventional loan. Most of these organizations focus on a particular need (i.e., housing and economic development). Examples of these are ACEnet Ventures, The Chicago Community Loan Fund, and Northcounty Cooperative Fund. We invest directly in a business such as Portland Youth Builders and Farmworker Housing Development Corporation. We also include organizations that provide international loans such as Katalysis Bootstrap Fund and the Wisconsin Coordinating Council on Nicaragua.

Each AIAC member is responsible to monitor two to three organizations. This requires that she contact the organization in person or by phone at least two times per year. Members are also encouraged to visit the organizations in which they are monitoring. The organization is also required to annually file a financial report with the General Finance Office of the Congregation.

For a complete list of the organizations in which we invest see the link “List of Alternative Investments” at the top of this page or contact the Peace and Justice Office at opjustice@aol.com.

Donations
Each year the Prioress and Council approves approximately $20,000 to $25,000 for donation to local and national groups and organizations. AIAC is responsible for managing this fund. The committee members determine how much money should be donated to each organization. The list of organizations is reviewed annually. For a complete list, contact the Peace and Justice Office at opjustice@aol.com.

Small Loan Fund
The Small Loan Fund provides loans up to $5,000 at very low interest rates for individuals in need who would not otherwise qualify for conventional loans. This loan fund has a maximum of $100,000 available. AIAC oversees this loan fund and approves application for loans. Loans have been given to people for assistance with mortgage payments, rent, moving expenses, automobile upkeep, and education.

Membership
Membership in AIAC is made up of Sisters, Associates, and a representative from the General Finance Office (GFO). The individual members represent a diversity of geography, ministry, and expertise. Membership involves a six-year term. Because of the active role members take, planned educational opportunities have occurred to help prepare for the responsibility. The assistance of a GFO representative has been invaluable.

AIAC Members 2010
Angelo Collins, OP
Pat Dillon, OP
Tina Heltsley, OP
Maureen McPartland, OP
Larry McWilliams
Nora Schaefer, OP
Colleen Settles, OP
Pat Sullivan, OP
Anne Sur, OP