Investors out to make a big impact in communities.

Community investing--the capital that institutions and individuals invest in towns and neighborhoods in the U.S. and around the globe that are underserved by traditional financial institutions--surged by 40% from 2003 to 2005 and nearly quintupled in the last decade, according to the "Community Investing Trends Report" of the Community Investing Program, a project of the Social Investment Forum Foundation and Co-op America.

With a focus on revitalization through increasing home ownership, small business job creation, and vital community-level services, community investing rose to $19.6 billion in 2005 from $13.7 billion in 2003 and just $4 billion in 1995. Over the past decade, the community investing measured in the report has grown more than 388 percent, making it one of the fastest-growing segments of socially responsible investing (SRI), according to the CI Trends Report.

Shared interest executive director and community investing program chair Donna Katzin said, "Community investing remains one of the fastest growing areas in the world of socially responsible investing and that trend is likely to continue with the heightened interest in community investing in the wake of Hurricane Katrina.

"While the socially responsible investment strategies of screening and shareholder advocacy focus on promoting corporate responsibility, community investing enables individuals and institutions to invest directly in local organizations and projects that create more equitable and sustainable communities around the world. The continuing surge in community investing assets is increasing economic opportunities for lower-income communities and spurring industry developments that make it easier for more investors to participate."

Trillium Asset Management vice president Linnie McLean said, "Investors are increasingly attracted to community investing because it allows them to have a strong impact on low-income communities domestically and internationally while earning a return on their investment. Community investments are helping people rebuild in areas impacted by hurricane Katrina and last year's tsunami, it's helping families around the world by creating business opportunities through microenterprise loans, and it's helping low-income people across the United States take part in the American Dream of owning a home. No matter what their social or geographic interests, investors can find a community investing product that works for them."

Underdog Ventures President and Founder David Berge said: "It's really encouraging to see community investors combine their absolute commitment to a positive impact in communities, with an increasing sophistication across the risk and return spectrum. Community investors who began their involvement with market-rate insured deposits at community development banks or credit unions are now turning as well to loan funds, pooled funds and venture capital products to diversify their community investment portfolios while creating a high-impact in targeted communities."

Highlights of the "Community Investing Trends Report" include the following:

* Since 1999, the first year the Community Investing Program separately tracked community investing sectors, the assets in Community Development Banks have grown more than 247 percent from $2.9 billion in 1999 to $10.1 billion in 2005. Since 2003, assets of Community Development Banks have increased 41% from $7.2 billion.

* Assets in Community Development Credit Unions grew by 749 percent from $610 million in 1999 to $5.1 billion in 2005. In 2003, $2.7 billion in community development credit unions' assets were identified.

* Community Development Loan Funds' assets increased 97 percent from $1.7 billion in 1999 to $3.4 billion in 2005, growing by $83 million since 2003. Of this $3.4 billion in loan fund assets, $165 million are in international funds that provide or guarantee loans for small business creation and community development abroad.

* Assets in Community Development Venture Capital Funds have grown 480 percent since 1999, from $150 million in 1999 to $870 million in 2005. In 2003, $485 million was identified in Community Development Venture Capital.