Some call it 'socially-responsible' investing.
Some call it 'biblically-responsible' or 'faith-focused' investing.
We dub retirement plan investors who desire to sow financial seed into their local ministries and/or social causes of choice, while realizing reasonable rates of return on their investments, as “IRA Angels™”.
An IRA Angel is one who invests their treasure where their heart is.
Whether it’s a new sanctuary or an addition to a private educational facility, IRA Self-Directors are free to come to the aid of non-profit organizations sorely in need of capital. Nowhere does it say that all funds raised for the various projects of such organizations have to be in the form of a gift. Many commercial loans have been made to churches and non-profits by commercial banks at high interest rates.
In today’s tight credit market, many of these loans are no longer available because the banks are reticent to lend money to single-purpose entities whose facilities have limited functions. If the lender has to take back the property, it may be a long time before a user will materialize to buy or rent the facility. Moreover, the interest rates for this class of loan are generally quite high, so if an organization can raise capital from its members to refinance an existing loan, and by so doing reduce the interest rate from 8% to 6%, it has just reduced its debt load by 25%. The funds thus freed up can go to many other essential functions of the organization, including expanding the reach of its mission.