Neighborhood Economics anchors the educational field building initiative wrapped around each “Local” fund (starting with Jackson, MS) and the “System” fund. It provides coordination on portfolio, educational engagement, community design, as well as marketing and convening support. Rosa Lee Harden and Kevin Jones, founders of the Social Capital Markets Conference (SOCAP), organize the initiative along with Executive Director, Leroy Barber and the team. ImpactAssets, with $2.3 billion in donor advised fund assets, provides the home for donor funds and the investment portfolios. The initiative will engage with local community foundations to collaborate at the local level, in addition to founding partners bolstering the Advisory and Investment Councils joining those sourced from or elected by Token holders. Donations of <$250 will support the development of the initiative as well as include a Neighborhood Economics 2023 Access Token for membership in the community and for attendance at the virtual CataCap Summit. Donations in increments of $250 will grant the donor a Common Cent Token for each increment. This is not a sale or purchase of securities; it is a tax-deductible donation to a multi-donor fund at a public charity. A receipt will be generated by ImpactAssets for donations of $250 or more. Ongoing ImpactAssets’ expenses and Neighborhood Economics program costs total ~3.75%/yr (standard DAF fees of roughly 1.25%, plus program expenses capped at no more than 2.5%). These fees, as well as attributable credit card processing fees, are netted out of the available investment funds. Returns from investments to the donor fund may cover or exceed expenses, to create a perpetual impact endowment that grows. Or it may erode over time. 

This inclusive, sliding scale membership entitles access to the Neighborhood Economics network, as well as invitation only, free or discounted events.

Each token has an evolving set of input and steering rights:

• Donors elect “Jackson, MS” or “System Level” for the allocation of capital (can be a ratio for $5,000+), undesignated tokens will be allocated at the discretion of the Advisory Council. Other city and focused theme funds will be added over time
• Nomination rights to the investment pipeline(s) 
• Allocation voting on deployment of capital into approved investments 
• Nomination rights for community Common Cent Token and Advisory Token recipients, as well as Investment Counsel members

 Every donor Common Cent mints one additional community Common Cent Token and a Membership Token, with a limited number gifted by the Common Cent holders as indicated above, and the balance through a slate sourced from Common Cent holders at large and approved, or awarded on a merit basis as otherwise defined as determined, by the Advisory Counsel.

Awarded to each holder that donates to attain 100 or more tokens, as well as an equal number of community members to equal the number awarded via donation method through a slate sourced from Common Cent holders at large and approved, or awarded on a merit basis as otherwise defined as determined, by the Advisory Counsel. Inclusion on the Advisory Counsel via Advisory Token confers right to:

• Approve slates of community Common Cent and Advisory Token recipients, as well as Investment Counsel members
• Steer the project over time, adjusting its structure and processes, and deciding which actions should be put to a vote or request input from Common Cent Tokenholders
• Never expires during the life of the initiative, regardless of number of Common Cent Tokens held
• Grantmaking/DAF Distribution Option – as recovery of capital occurs to the Fund, those holders of an Advisory Token may recommend up to one grant and/or distribute to or set up an individual DAF (as long as pro rata amount equals a minimum of $2,500 per event of distribution), computed as the pro rata of available capital indicated by their number of Common Cent Tokens held by Advisory Token holders in that pool (and said Common Cent Tokens will be retired in the amount distributed)*

* For example, if a person holds 100 tokens after donating $25,000 they would therefore get awarded an Advisory Token. If $500,000 is returned from a portfolio investment in a given pool at a time when there are 10,000 Common Cent Tokens held by Advisory Token holders in that pool, the 100 Tokens would advise on a $5,000 grant or DAF distribution, and if that option was exercised, would “burn” 20 Common Cent Tokens of the Advisory Token holder, leaving them with 80 Common Cent Tokens for further distributions. Once they reach 0 Common Cent Tokens, they will have distributed 100% and though continuing to have the Advisory Token rights, will not have further granting rights until such time as they donate to collect more Common Cent Tokens. The Advisory Council will calculate and manage such distribution recommendations.

There will be 5 or more members on the “system” Counsel and 3 or more for each “local” (i.e.. Jackson, MS) Counsel (number determined from time to time by the Advisory Counsel), wherein 50% of the combined will be required for local approvals with at least a majority of local members in the affirmative, and >50% of the system Counsel for system approvals. In this way, each local instance will get a control function of local members for representation and intel. Approved investments will be presented back to all Common Cent holders for allocations, and investments that don’t receive $25,000 in allocation will have their amounts added to the investment under $25,000 with the most allocated to attempt to reach $25,000, and all under $25,000 split equally amongst all with $25,000 or more.