Operating Principles

Our Operating Principles help us translate our Purpose and Values into concrete actions. They answer the question, “How do we prioritize our activities?”

To read our Purpose and Values statements, click here.

Operating Principles

Transformation
We co-create RSF Social Finance with our stakeholders: staff, board, investors, donors, borrowers, grantees, asset managers, partners, and friends. We strive to lead by example. Long-term relationships are of primary importance. We are engaged constantly in a practice of deep listening, trying to hear what is being called for next in a spirit of service. In addition to the facts and circumstances of each relationship, we place high value on intention. We are committed to working with those who seek to transform their relationship to money and with those who seek to redefine the core assumptions of our economic and financial systems.

Transparency
Transparency is essential to achieving our ends. We set expectations with clients as clearly as possible. We are open in reporting our results. We take the time to be honest with fellow staff and board members, including difficult conversations when appropriate. When financial transactions are as direct as possible, we believe transparency has a greater chance of being realized. Trust-building begins with transparency.

Inquiry
We ask hard questions. What does it mean “to transform the way the world works with money”? How exactly are we “inspired by the work of Rudolf Steiner” on a day-to-day basis? Why is it so important to inquire into the different qualities of money—purchase, loan, and gift? How do we determine to what degree we are being effective? Research and reflection are critical tools of inquiry and are thus an important part of our organizational learning. Our value proposition is creating a unique community for all our stakeholders to share and to learn from each other.

Entrepreneurship
We have a bias for action. We are steadily developing an entrepreneurial culture based on the primacy of innovation. We will remain lean and agile; continuous improvement is our objective. Further, we are committed to the importance of “open source” practices—whether it is sharing our people, products, or our business model itself, we want to help build the field of social finance in whatever ways are effective.

Financial Performance
As a non-profit public charity, we strive to balance strong financial performance and social innovation. We intend to continue our long track record of providing consistent, positive returns to our loan fund investors. Regarding our operating budget, we are on a steady path to 100% self-reliance through earned income.

Risk Management
We are committed to the best practices of risk management. We run a disciplined operation, with extraordinary attention to detail in all matters of financial stewardship. We do not securitize loans or use unnecessary leverage. Our corporate structure and governance model are designed for flexibility and accountability.

Associative Economic Practices
We apply the basic principles of associative economics, as first articulated by Rudolf Steiner. We encourage all parties in financial transactions to be awake to the needs of the others involved, to activate a high degree of altruism as a counter-balance to self-interest, and to make decisions in this framework.

Place-Based Economies
We support direct-investment vehicles and other means of exchange designed to match investors from a particular region with community-based enterprises in that same region. We know that people develop a sense of shared responsibility when spending time face-to-face on a regular basis in an effort to care for each other and the places where they live. We view the power of place as essential to a thriving economy.

Diversity
We are motivated to achieve diversity (racial/ethnic, class, gender, sexual preference, geography, etc.) based on a belief that the need for transforming the financial system is universal. We believe a wide range of perspectives is part of what makes any organization successful. Rather than adhering to this principle by policy or requirement, we aspire to it in all of our activities.

Social Impact
We support truly pioneering individuals and organizations—those who strive to achieve deep social impact in every aspect of what they do and who may be significantly ahead of their time. Volume is less important than depth. We seek out and embrace small organizations that have disproportionately large impact. We are a hub – a trust holder – in the broader network of social finance organizations; and we believe this network of formal and informal partners will have far greater positive impact than we could on our own.

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