Social Component Investments: Process and Tools
Social Component Investment Process
This flow chart shows how our Foundation manages Social Component Investments (SCIs). There are four process phases: Pipeline Generation, Deal Analysis & Decision, Implementation, and Monitoring & Reporting. Each process phase identifies critical path action items and task ownership.
Social Component Investment Process
Social Component Investment Tools
Raúl Pomares together with Doug Bauer of Rockefeller Philanthropy Advisors and the KL Felicitas Foundation have developed tools for supporting the due diligence steps for each investment category. A PDF version of the SCI Evaluator tool can be downloaded at the end of this page. We encourage other social investors to use this tool. If you are interested in receiving the source file, please contact info@klfelicitasfoundation.org.
The SCI Evaluator tool is designed to work in conjucntion with a formal investment due diligence process. It allows a foundation to assess, document, and define roles for evaluating investments in the areas of:
- Investment structure, portfolio implications and financial performance reporting
- Alignment with Mission or Program
- Establishing Social Component 'Impact' criteria
Social investors may be as detailed as they like in documenting their responses. For examples of how we use the SCI Evaluator tool, please go to SCI Investment Section.
A scoring system is included for each question, allowing the social investor to establish a more objective framework for evaluating SCI investments. It is important to document a pass or fail scale for scoring results . We use a very simple scoring system of -1, 0, and +1 to document if a given investment is either compliant, neutral, or not compliant with the various guidelines and objectives as expressed in the questions of the Evaluator tool. If an investment is scoring -1, an explicit exception will have to be made before moving forward.
For effective use of the tools, a documented investment policy and portfolio objectives, and an established investment due diligence process.
© Raúl Pomares. All rights reserved. The SCI Evaluator tool is not intended for commercial use. Users may utilize this tool only for personal and private use. Please review our Terms and Conditions before downloading.