ABUNDANCE CAPITAL INVESTMENT & LENDING POLICY

Effective Date: January 1, 2026

Overview

Abundance Capital deploys capital to advance its mission of building sustainable, equitable communities. This policy outlines how we evaluate, structure, and manage investments and loans.

Our Investment Philosophy

We believe capital can be both financially disciplined and deeply mission-driven. All deployments expand access to capital, support sustainable growth, prioritize equity, and align philanthropic intent with economic outcomes.

Mission Alignment

All investments must advance Abundance Capital’s charitable purpose: building sustainable, equitable communities, prioritizing underinvested populations and overlooked market opportunities that contribute to solutions.

Geographic Focus

Primary focus: Founded in the Southeast (South Carolina), Abundance’s primary investment and lending focus is in the United States. Exceptions beyond the United States are allowed if donor-recommended and compliant.

Eligibility

Eligible: nonprofits, social enterprises, and for-profit entities aligned with Abundance’s mission.

How We Deploy Money

Abundance can use a wide variety of structures and return scenarios. Our structures include loans, convertible notes, equity investments, revenue shares, grants, and recoverable grants.

Our approach is to deploy patient, concessionary, and risk-tolerant capital. We can deploy as much (or as little) money as the entity requires and the donor is willing to support. All investments must preserve a charitable nature and retain returns within the DAF.

All returns are directed back to Abundance and are available for charitable reuse by the donor’s Abundance Angel Fund, thereby enhancing the long-term impact of the charitable investment.

Our Process

Our process focuses on basic discovery of an entity’s legal and tax status, as well as its eligibility from a mission perspective. As a donor-advised fund sponsoring organization, we do not deploy money without the recommendation of a new or existing Abundance Angel (donor-advised fundholder at Abundance).

Monitoring & Accountability

Abundance requires that all recipients of investment, borrowers, or grantees report annually on the impact they have achieved and their financial progress. The recipients are also required to comply with all legal obligations, including tracing their expenditures to ensure that all money received from Abundance achieves the charitable or societal purpose for which it was invested. Abundance is committed to transparency and reports all investments, loans, and grants on its Form 990 as well as in its annual impact report.

Prohibited Distributions (IRC §4966 and IRC §4958)

There are regulations that govern Abundance’s deployment and specifically who can invest using their donor-advised funds. We endeavor to ensure that all our deployments will not inadvertently trigger any taxable distributions, including improper grants or a lack of expenditure responsibility. 

In addition, Abundance must ensure that no transactions confer excess benefit on disqualified persons, such as family members, majority owners of a company, or beneficiaries of a project. Terms must be fair and reasonable.

Who Is the Investor, Abundance Capital or the Donor?

Donors may recommend but not control decisions or receive private benefits. Abundance is the investor, lender, or grantor.

Regulatory Compliance

All activities comply with federal/state law, securities law, and IRS guidance. Abundance’s discovery process will focus on legal compliance, not on assessing the likelihood of the enterprise's financial success.