Scamming Social Change
Since 2018, the Dream Exchange has been raising funds from do-gooders across the country to create a public marketplace for minority-owned businesses. Go to the Dream Exchange’s homepage, and you’ll find the headline: “Breaking the Cycle of Structural Oppression in Capital Markets.” The bullet points under it suggest that the creation of a new public exchange will fix the minority wealth gap and “boost U.S. GDP by $1-1.5 trillion by 2030 through equitable capital access.” By providing black and brown businesses new opportunities for public offerings, the Dream Exchange could turbocharge “equality for underrepresented groups [that] could add $12 trillion to global GDP by unlocking potential.”
Equality. Justice. Dreams. Unlocking trillions.
I personally sat through two online pitches by the Dream Exchange team, and, honestly, was put off by this hype. I asked an impertinent question about how gigantic publicly traded companies on the exchange could possibly help local businesses and local economies essential for community well-being, and their answer was effectively: Why focus on the small crumbs of local investing? The big money is in public markets, and it’s time for us to play in them.
Now, a mind-blowing investigative report from The Wall Street Journal, our first piece in this issue, reveals that “Dream Exchange and its leadership team have extensive ties to the Church of Scientology and entities connected to the religious institution.” Staff are required to participate in Scientology practices; some are “cleared” with a lie-detector-like machine called an “e-meter,” and substantial sums of money have flowed from the founders to the “Church.”
I’ve put church in quotes to remind readers that Scientology was the product of a struggling science-fiction writer named L. Ron Hubbard. And its brand of religious freedom, as chronicled in the documentary Going Clear, drains the bank accounts of believers into destitution and viciously smears those who become public critics.
From my perch, this is an example of a bigger problem in our movement. The universe of “impact investing” is increasingly attracting charlatans, profiteers, and snake-oil salesmen, promising sky-high returns and amazing social missions. This is why my friend and colleague Kevin Jones ultimately sold SOCAP and launched Neighborhood Economics instead. He could see that his social impact conferences were increasingly attracting those looking for a quick buck.
If you truly want to support minority-owned businesses, invest in those you know, trust, and love in your own backyard. It’s really that simple.
And in support of that proposition, paying subscribers will find links to these articles as well:
Perfectly timed with the exposé of the Dream Exchange is a piece by Jenny Kassan, one of the pioneers of investment crowdfunding, about how real impact investing absolutely requires the lens of place.
You can learn about the Douglass Community Land Trust, located in the Anacostia neighborhood of Washington, D.C., which is now supporting 260 units of housing, including rentals, limited-equity co-ops, and single-family homes.
Speaking of Kevin Jones, he has a great piece in ImpactAlpha that summarizes some of the local economy models to be presented at the upcoming Neighborhood Economics conference in Chicago. (One model was discussed in our last issue in an interview with the commercial property developer Lyneir Richardson.)
The Shorefast Institute, based on Fogo Island in Canada, is now putting clever “Economic Nutrition” labels on worthy local businesses to help consumers and investors target their dollars more effectively.
British and Canadian researchers have published an informative analysis showing how community wealth building, centered in anchor institutions, can help communities decarbonize and move toward “net zero” energy emissions.
Despite the best efforts of the Trump Administration to kill renewable energy, Bloomberg reports that “global investment in new renewable energy projects hit a record $386 billion in the first half of 2025, up 10% from the previous year.”
If you want to read all our stories and you’re not a paying subscriber, please click on the first button below. Many thanks!
— Michael Shuman, Publisher
A Paid Subscription Gets You:
✔️ News Links
✔️ In-Depth Interviews
✔️ Latest Listings of Local Investment Opportunities
✔️ Monthly Virtual Meetings With Michael Shuman
✔️ Notable New Resources
✔️ Partner News & Voices
✔️ Job Listings
SPONSOR CORNER
The National Coalition for Community Capital (NC3) is dedicated to educating, advocating, and activating community capital and serves as MSJ’s fiscal sponsor. Thank you for being a part of a growing movement! Contact NC3 for support in integrating local investing in your work: info@nc3now.org.
NC3 UPDATES AND ANNOUNCEMENTS
NASLEF Conference: On September 3, NC3’s CEO, Chris Miller, and Michigan Ingham County Treasurer, Alan Fox, presented the story of a remarkable project in Lansing, Michigan, on the site of the elementary school Malcom X attended. “As a part of an ongoing project to create a community center hub in SW Lansing, the Ingham County Land Bank Authority is funding the creation of a community investment fund that will provide neighbors an opportunity to make a direct investment in the mixed-use/mixed-income project. The NASLEF audience, made up of funders and related organizations that support LIHTC projects, had lots of great questions.” - Chris Miller.
IEDC Annual Conference: NC3’s CEO, Chris Miller, facilitated a well-attended and lively group at this year’s conference. Featuring guest speakers and NC3 Accelerator Program participants, Rachel Scott of AmplifyGR, Brent Forsberg of the Lansing Growth Fund and a Developer with Holmes & Pleasant Grove, and David Palmer of MiDCIF. Small groups had the opportunity to talk with each speaker about their experiences engaging community members in financial investments.
September Coalition Conversation: Newly released! This month, Chris Miller spoke with a collection of crowdfunding platforms: Honeycomb Credit (Jackie Logan, Climate Strategy & Integration Lead), Funding Hope (Dorian Dickinson, Co-Founder), Community Finance Academy (Bill Huston, Founding Executive Director), and Folla Capital (John Panaccione, CEO). Watch the conversation here.
