brown on green, A Regular column about finances

It's a Wonderful Life: Invest Responsibly

One of the most striking scenes from the old movie It’s a Wonderful Life comes when George Bailey gets to see what the world would be like if he had never been born. In the scene, he walks down the street of his hometown of Bedford Falls but doesn’t recognize any of the businesses.

Apparently, because he had not been born, the Bailey Building and Loan went out of business, and the city was severely affected. Rather than a family-friendly town, the main street was filled with nightclubs and other unsavory businesses, and prostitution was rampant. While the scene might seem overly dramatic, the truth is, without Christian influence in society and businesses, all our cities would be less family friendly.

Free Will Baptist Foundation practices “responsible investing.” Specifically, our policy states “Free Will Baptist Foundation will not invest in stocks whose primary business involves alcohol, tobacco, or pornography.” We receive copies of every purchase our investment firms make for our approval. Responsible investing is our policy, and we follow it.

While we make no direct investments in these areas, sometimes, it is difficult not to be indirectly invested. For example, if we invest in a grocery store chain, some locations may sell tobacco and beer. If we invest in the restaurant industry, some establishments may choose to
sell alcohol.

Some individuals may set stricter policies, but regardless of how strict the policy, it is nearly impossible to avoid indirect investments in taboo stocks or businesses. Some may argue that perhaps we should look elsewhere for investment.

Real Estate Investment Trusts (REIT) may be attractive; however, as a shareholder in a REIT, you have no control over whether a particular REIT company may choose to lease space to a store that sells pornography.

What about banks? Banks finance all kinds of businesses, including some that are objectionable. Government bonds may seem like a safe haven; but again, the government uses money from bond investments to subsidize industries on our list to avoid.

At the Foundation, we believe we should never directly support sin industries through our investments, and we believe Christian individuals should do the same. At the same time, we understand that on occasion, investments might indirectly be invested in sinful industries.

No matter where you put your money in the investment world, this is bound to happen. We monitor our investments carefully to avoid direct exposure to sinful businesses; but it is nearly impossible to see where every dollar goes indirectly. I can guarantee that your investment in the Foundation will be invested wisely, with gains returned to Kingdom ministry, and the dividends you reap will be eternal.

David Brown, CPA, became director of the Free Will Baptist Foundation in 2007. Send questions to David at david@nafwb.org. To learn how the Foundation can help you become a more effective giver, call 877-336-7575.