For decades, faith-based investing has been reduced to a simple screening process: avoid tobacco, alcohol, and adult entertainment. But according to Steven Libman, founder of Investing With Purpose™, this approach is a failure. “The definition that the industry has been operating under for the last 30 years is a lazy one,” says Libman, who recently launched a multifamily real estate investment platform built on faith-driven principles. “Screening is the floor. Building intentionally would be the ceiling.”
The distinction matters as capital allocation increasingly reflects investor values. Libman argues that investors who cannot differentiate between surface-level compliance and genuine alignment are outsourcing their conscience to fund managers who may not share their priorities. His core premise: every dollar invested is a vote for something. “If your grandchildren inherited your portfolio tomorrow, what would they know about what you believed in?” he asks.
Libman warns against repeating the mistakes of the ESG sector, which he says “put a dagger in the heart of values-aligned investing.” ESG funds often promised impact but delivered weak returns, according to a recent study tracking fund performance. “They were saying you are going to get lower returns, but we will make an impact. In fact, they were not making an impact, and they were not making a return either,” Libman notes. He contends that values and returns are not incompatible when alignment is operational, not just a marketing label.
At Investing With Purpose, the mechanism for community impact is an on-site asset ministry program. Free apartments are provided to ministry staff who organize tenant engagement activities like movie nights and farmers markets. The business logic is clear: tenants with strong social connections are 45 percent less likely to move out, reducing turnover and vacancy costs. “Ministry is the moat around the investment,” Libman says. “When people say impact is going to decrease returns, we think the opposite is true. Caring is a durable business advantage, not a disadvantage.”
Transparency is a key differentiator. Investors receive not only standard financial KPIs but also a ministry impact report tracking community connections and pastoral support. They are also invited on-site quarterly for serve days. “Unlike your Wall Street investments, you can drive by it, touch it, feel it, actually see the impact that we are making,” Libman explains.
For investors new to values-aligned investing, the entry point is often real estate. “Most people understand rental property,” Libman says. “From there, the question becomes not whether to invest in real estate, but what kind of operator and structure best reflects your principles.” He emphasizes that the faith-based label is not a constraint on returns but a signal about operational philosophy and long-term community relationships. “Every dollar that you invest is a vote for something,” he says. “So when you deploy your capital, it is either going to build something you are aligned with or something that might be in conflict with your own values.”
