Some investors give money to a start-up with the hopes of recouping their investment with interest. Some investors give money to start-ups and nonprofits with the hopes that the initial investment will seed transformative growth for the communities in which the business resides. James Wahls is the latter.
Throughout his career, Wahls has invested or managed hundreds of millions of dollars into businesses run by historically marginalized entrepreneurs and organizations serving the public good. Wahls is the founder and managing director of Revolve Fund, a philanthropic initiative that offers recoverable grants and other support to organizations in multiple regions of the United States. Revolve Fund grants have given both small businesses and mission-aligned organizations a chance to make a real impact in the communities they serve.
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I recently caught up with Wahls to discuss his work, passion for community, and mission to support small grassroots groups.
André White: Why did you launch the Revolve Fund?
James Wahls: I launched the Revolve Fund as a response to more than a decade’s career in impact investing and philanthropy. I wanted to develop a funding product that increased affordable capital access for small businesses owned by, or tax-exempt organizations led by, historically marginalized entrepreneurs who have difficulty securing capital from traditional sources with minimal financial harm.
I believed, and still believe, that entities need patient, non-extractive capital. Revolve offers recoverable grants and other supports to organizations using an investor-like approach. Our funding positions our grantee partners to scale their businesses or revenue models, access additional financial supports, and build mutually beneficial relationships with strategic impact.
AW: Can you tell us about yourself and your background?
JW: With previous stints at W.K. Kellogg Foundation and Annie E. Casey Foundation and now a senior executive at Mission Investors Exchange and managing director at Revolve, I’m committed to helping good people get the capital they need to have an even greater impact. Through my impact investing and philanthropy roles, I have managed or co-managed $250 million-plus in impact investing and philanthropy allocations comprised of grant, equity, debt and direct investments. Notable initiatives I designed or led include the Baltimore Small Business Support Fund and the Detroit Entrepreneurs of Color Fund. Both served as catalytic models for moving tens of millions of capital for small businesses and nonprofits. I also spearheaded investments in affordable housing, financial inclusion, quality job creation and community development throughout the U.S.
AW: What impact does Revolve’s funding have on the businesses you’ve given to?
JW: Revolve Fund grantees are pioneering industry-shifting work. For instance, one Revolve Fund grantee, Just Futures, is working to help organizations align their finances with their social justice values. They offer various investment solutions, including 401(k) and 403(b) retirement plans, to help small businesses attract and retain staff. They also ensure that people committed to missional work are able to retire with dignity. Through its partnership with Revolve, Just Futures is able to help mitigate startup costs for retirement plans. This is pivotal because initial startup costs for retirement plans are cost-prohibitive for many small businesses and nonprofits. Aside from Just Futures, we know that our investments yield measurable results. Although the fund has deployed over $1.2 million, grantees have been able to raise $ 60 million in funding.
AW: Speaking of Just Futures, you recently announced an expanded grant partnership with the group to help small nonprofit businesses in Baltimore. This is after making an initial investment with the company in 2024. What about Just Futures drives you to keep investing in their work?
JW: Great question. Most Americans are underinvested for retirement. For grassroots leaders and others, retirement security is a huge issue. Revolve invested in Just Futures because they help ensure dignified retirements through values-aligned investments. Its main customers are missional organizations.
AW: Why is it important to target missional organizations specifically when it comes to securing retirement?
JW: Along with real estate, retirement accounts represent one of the largest assets for many Americans. Many smaller nonprofit leaders are unable to offer retirement accounts because setting them up can be costly. Leaders are often focused on the work in front of them – the fires that must be extinguished – rather than retirement planning. Just Futures rectifies the retirement conundrum by lowering the barriers to entry for nonprofits and individuals.