How impact investors can better serve communities: ask them what they need

About 40 percent more people in the state are seeking treatment for addiction today than a year ago - but the number of deaths from heroin is going up. Local government is scrambling for both funding and awareness to combat the issue.

Poor people are less likely to make smart financial decisions; however, new research in the U.S. says this is not about intelligence but rather about a brain being overwhelmed with issues related to poverty. To combat that barrier of stress, organizations around the world are making financial decisions easier for people experiencing poverty by making borrowing easier and automating future financial planning, like 401(k) contributions.

Funding with too many strings attached makes it hard for non-profits to grow and be impactful. An American organization, Nonprofit Finance Fund (N.F.F.) Capital Partners division, is finding ways to finance non-profits likes companies and has already shown great success in pilot situations.

According to the Centers for Disease Control and Prevention, drug overdoses are the leading cause of injury-related mortality. Naxolone, a drug used to revive overdose victims, is only available by prescription. However, private organizations have distributed Naxolone kits nationally, showing that the drug can save lives when it is more readily accessible.

Adolescent smoking remains a challenging health problem because of the allure of cigarette branding. Australia is piloting the transformation of cigarette packaging with a generic look that reduces the appeal of smoking. In Florida, the Truth campaign has exposed that cigarette companies targeted teenage consumers and, in response, created a set of new advertisements that presented the cigarette industry with transparency.

Foreclosure affects millions of homeowners and millions more owe more on their mortgages than what their homes are worth, but Empowering and Strengthening Ohio’s People (ESOP), offers assistance. As a free service to borrowers, ESOP holds lenders accountable with fair lending agreements, creates constructive communication, and ultimately saves homes.

More Than Wheels, a New Hampshire-based non-profit offers an economically stable solution to the high cost of owning a car. The program offers low-cost car loans that go toward the purchase of fuel-efficient vehicles.

A panoply of responses to poverty has emerged to address poverty in the United States and abroad. The responses share in three key tactics: Measuring impact, paying for success, and collaboration.

Lotteries aren’t usually considered part of the solution to a savings crisis experienced across America, particularly by the nation's poor, but with more hopefuls purchasing lottery tickets than setting aside rainy day funds, one organization, Doorways to Dreams, is working to change federal and state laws to allow banks to offer prize-linked savings. In Michigan, the programs have seen some success.

In the wake of Hurricane Sandy, necessity has bred an interesting kind of financial invention for the New York MTA: the world’s first “catastrophe” bond - a reinsurance for the insurer - designed to protect public transportation infrastructure, specifically against storm surge. These bonds privatize risk for public gain, creating a kind of tool that may protect economic development against all kinds of natural and man-made disasters around the world.