Conservation Loan Collaborative

LegacyWorks Group is launching a collaborative to meet the demand for bridge financing needed to accelerate the pace and scale of conservation nationally.

The Conservation Loan Collaborative (CLC) enables organizations and coalitions to create and capitalize loan funds so they have the capital needed to seize high priority opportunities when they emerge. To make this possible, the CLC combines a team with the trust of the conservation and funder communities, the platform and efficiencies of a professional fund management company, and the expertise of seasoned deal makers. The CLC connects funders with networks of conservation groups to enable them to achieve previously unreachable conservation, restoration, and resilience goals together.

How We Serve

We support landscape scale conservation and community impact initiatives across the country through the creation of shared fund management infrastructure and the provision of consulting and support services including designing and building revolving loan funds, training and capacity building, developing impact metric frameworks and dashboards, supporting land transactions from inception to completion, fundraising, and related support services. 

Our team is made up of experienced conservation and impact finance leaders who have successfully completed more than $500 million worth of conservation finance transactions.

The Need

Thanks to the Great American Outdoors, Inflation Reduction, and Infrastructure Investment and Jobs Acts, along with state and local public funding measures, roughly $100 billion is slated for conservation in the coming years. That is far more public conservation funding than ever before, but the funds are not readily available. Conservation transactions that rely on federal funds are taking two years or longer to close. Sellers are rarely that patient, so land trusts need ready access to capital to act when priority opportunities arise. A number of funders and institutions already offer bridge loans, but the supply of bridge financing has actually declined due to funding reallocations within several key programs, just when we need it more than ever to put $100 billion of public funding to work. Addressing this growing gap between demand and supply is a critical and urgent national priority.

The gap between bridge financing supply and demand is growing

Complicated/inefficient pathways for funding to achieve outcomes.

Limitations of the Current System

Traditional lenders lack the sector expertise needed to underwrite conservation transactions, so the conservation community has had to build its own solutions. Yet lending requires specialized legal and finance expertise. Launching a fund requires even more know-how and is an expensive undertaking. Conservation, community groups, tribal organizations, and coalitions who want to launch their own funds often fail to overcome these barriers. Regional funds that have launched are frequently undersized and not cost-effective. Meanwhile, the few funders who do offer loans limit their lending to their strategic regional and programmatic priorities. All of this leads to an underdeveloped and fragmented conservation lending marketplace. Supply does not approach demand, large areas of the country lack coverage, and it is challenging to connect willing capital with aligned opportunities.


A Systems-Scale Solution

Addressing these needs and challenges requires an innovative, system-scale solution that:

  • Leverages the full spectrum of impact finance from grants to mission related investments

  • Makes it easy for foundations and donors to commit capital to meet their strategic goals

  • Enables land trusts to activate donors as investors to launch regional and topical funds

  • Provides technical assistance to enhance borrower readiness and finance acumen

  • Empowers diverse borrowers and revolving fund creators

  • Actively and effectively mitigates and manages risk

  • Enables collaboration and coalition building around geographic and topical funds

  • Provides high caliber legal, finance, regulatory, and programmatic expertise

  • Creates scale and efficiencies to minimize operating costs and keep interest rates low

  • Launches with philanthropic support and matures into a self sustaining business model

Streamlined, Efficient, Organized, Structured

With these requirements in mind, LegacyWorks is launching the Conservation Loan Collaborative (CLC). Akin to how a community foundation hosts a wide variety of donor advised funds that share its infrastructure and team, the CLC will host and manage a portfolio of revolving loan funds custom built to meet the specific needs of organizations, coalitions, and funders. By hosting many funds on a shared platform we can achieve the scale needed for best-in-class support, systems and services. This creates significant efficiencies that in turn enable us to invest time and resources supporting fund teams, borrowers, and investors, building the capacity needed to accelerate conservation.

We thank… the Doris Duke and EJK Foundations for their financial support and thought partnership in the design and launch of the CLC, along with the many conservation organizations who we have partnered with and whose ideas and input have helped shape the CLC.

“Without low-cost interim finance, many conservation opportunities will be lost, especially projects that are driven by strategic priorities and not by the degree of landowner interest and patience”

— Doris Duke Foundation Internal Report

 Frequently Asked Questions

  • The mission of the Conservation Loan Collaborative is to connect catalytic capital with high impact opportunities to achieve conservation, restoration and resilience goals at the pace and scale required. The Collaborative mobilizes and deploys bridge financing to enable the conservation community to seize high priority opportunities when they emerge. This requires a team and shared platform with the trust of the conservation and funder communities, the efficiencies of a professional fund management company, and the expertise and experience of seasoned deal makers. This powerful combination connects the resources of funders with the knowledge and networks of conservation groups to enable them to achieve previously unreachable conservation, restoration, and resilience goals together.

  • The Collaborative is designed to be highly flexible and adaptable to the needs of each Fund Team’s needs and opportunities. Of our 10 initial pilot fund candidates, most are focused on traditional bridge loans to finance land acquisitions for conservation. The first active fund is focused on an innovative asset acquisition model in fisheries and marine conservation. We are also in discussion with groups who need bridge financing for habitat restoration, nature-based climate solutions and green infrastructure, water conservation, regenerative agriculture, and more. We anticipate that funds will be developed to support an array of opportunities over time, guided by the needs and priorities of the organizations and funders we serve.

  • The    Conservation Loan Collaborative is designed to catalyze and achieve a spectrum of multi-faceted impacts. These are some of our  core goals:

    • Build finance experience and capacity of conservation groups and agencies

    • Activate local donors as impact investors via no/low-interest lending

    • Enable conservation outcomes prioritized by regional and topical partners

    • Empower organizations that lack capital to compete and win larger public grants

    • Strengthen regional and topical collaboratives and networks of actors, agencies and capital stewards

    • Catalyze local impact investing initiatives as donors become impact investors, opening up possibilities for an array of follow on investments and funds

  • The Collaborative is designed to be able to accept and manage or otherwise mobilize the full spectrum of private, public and partner impact capital, including:

    • Donations, grants, recoverable grants, forgivable loans, no- and low-interest private loans from individuals, families, and family offices

    • Grants, recoverable grants and forgivable loans from donor advised funds (DAFs)

    • Grants, program related investments (PRIs) and mission related investments (MRIs) from foundations

    • Public funding at the federal, state and local levels

      • State Clean Water Revolving Loan Funds (some state funds are authorized to lend to land trusts, and one pilot pool has initial commitments from their state RLF)

      • Capital from Green Banks

      • Other sources of federal funding such as Department of Defense REPI funds for revolving funds that intersect with REPI and Sentinel Landscape geographies and goals

    • A variety of risk management mechanisms including first loss capital, loan guarantees, letters of credit and balance sheet guarantees

    • A variety of funding from partner institutions including Community Development Finance Institutions, investments and funds

    If you have ideas in mind that are not included here, please reach out.

  • Highly. Each Fund Team develops the terms and policies for their loans, including rates, terms and whether loans are secured or unsecured. We have designed the collaborative and its systems to be able to tailor our services to the needs of each Fund Team. We have also built flexibility into how funds and the Collaborative as a whole work with donors and investors. Anchored by a culture of communication and innovation, our team works to see how we can make things work for funders, funds, and borrowers to get capital flowing to where it is needed most.description

  • The Collaborative was conceived out of conservation organization needs for reliable access to low cost funding, and conservation, restoration and resilience will be our primary focus areas during the initial stages of the Collaborative’s development. As is increasingly clear though, the compounding crises we face are intertwined, and we cannot advance our conservation goals without simultaneously taking care of community wellbeing. We are currently advancing a feasibility study for a community land trust in the midwest whose primary goal is land acquisitions for affordable housing development, though they are enthusiastic about our suggestions to link conservation and housing to work both ends of that equation. We have also been approached about the need for revolving funds for pre-development expenses for disadvantaged communities seeking federal grants for a variety of needs from water quality to renewable energy to water conservation, since those communities lack the budget to invest in the planning necessary to prepare competitive infrastructure grants. Given the breadth of need for bridge funding and opportunity for impact, we are designing the Collaborative with the flexibility to serve many missions. We anticipate serving any organization that needs funding to accelerate their mission, whether it is easing climate impact, building resilient communities or rebuilding our economies.

  • Yes. We are actively supporting several such transactions. Since there will always be high impact opportunities that fall outside of the scope of any given fund within the Collaborative, we anticipate that this will likely always be true. We believe bringing our experience and expertise to connect donors and investors with a borrower in need of capital is the best way to introduce a community to the power of conservation finance, and we expect single loans to lead to additional transactions and opportunities to catalyze the creation of new funds within the Collaborative.

Do you have questions not addressed here? Email our CLC Team at clc@legacyworksgroup.com or sign up for our e-news.