New Tools to Measure the ‘Impact Rate of Return’ when investing in Opportunity Zones

The measurement of success has always been a subjective issue. Different people define success in various ways, so agreement about the achievement of success has never been standard. The measurement of the success of Opportunity Zone investments should not be subjective.

Howard W. Buffett, president of Global Impact LLC and professor at Columbia University, has developed an algorithm to objectively measure the potential social and economic impact of Opportunity Zone investing. In partnership with NES Financial, Buffett’s advisory firm states that this reporting tool is able to track “an Opportunity Zone project’s location, development type, census tract and investment size” and use the date to produce a figure which represents its success.

NES Financial, a JTC Company, introduced a second generation economic and social impact reporting to its Opportunity Zone administration solution. Their solution provides regular progress monitoring for investors and fund managers and will be an invaluable measurement tool to demonstrate the power of our Opportunity Zone projects, allowing social impact investing to thrive as was intended by the law.

As you may know, there are significant tax advantages when properly investing in Opportunity Zones. When investments are made in one of the 8,700 designated Opportunity Zones, capital gains can be deferred until 2026, and when you do pay, it will be at a discounted rate. Additionally, when the investments are held for at least ten years, there is no capital gains on the sale. With over $10 billion invested already, Opportunity Zone investing has become popular and forward-thinking investors hope to use their investments to make a positive social impact.

We are proud to be the industry leader in ‘Shared Values’ investing with our Ellavoz Impact Angel Network.

Written by Chris Ferry