University of Iowa

Models for Community Impact Investing

Law students visit to Manning
Academic Year 
2018-2019
Project Partners 

Clinic law students, who are second or third year students at the University of Iowa College of Law participating in the Community Empowerment Law Project (CELP) will explore models for community-driven investment vehicles in two Iowa communities- Webster City and Manning.

Rural Iowa communities of all sizes face many, well-documented challenges:  aging residents and infrastructure, population decline, lack of affordable housing, the loss of manufacturing jobs, and the decline of Main Street that frequently follows.  The City of Manning and Webster City, located in Central-West Iowa, are working aggressively to leverage the strengths of their communities, increase economic development, and re-envision what life in small town Iowa could be.  

Manning is a small, rural town in Carroll County, with approximately 1,500 residents. Webster City, the county seat of Hamilton County, is significantly larger with approximately 8,000 residents.  Though they differ in size, both communities are predominantly White and the median household income is $46,000. The median age of residents is approximately 45 years old and 85-90% of residents have high school diplomas.  

Manning and Webster City are both interested in innovative solutions to support community-driven economic growth, by harnessing the capital of small, local investors and supporting entrepreneurs.  Manning was successful in securing $790,000 from local investors to build the city’s first and only hotel.  Similarly, Webster City has had success creating and renovating a nonprofit movie theater using crowd-funding, and is in the nascent stages of establishing a cooperative brewery in the city.  However, these impressive successes did not create a means to effectively channel local investment for future projects.

Both communities want to establish legal entities with set processes for aggregating and using local dollars to develop their communities and generate community wealth.  This project engages a range of issues from how to survey and analyze community needs to the role of local government and social media in fostering community economic development.  Students will gain familiarity with state and federal laws relating to entity formation and governance, cooperatives, tax, securities, preemption, impact investing, and social entrepreneurship, amongst others.  The project will give students an opportunity to hone diverse skills including interviewing, client counseling, intensive factual and legal research, contract drafting, translating complex information for lay audiences, and developing an understanding of the myriad issues related to cutting-edge financing vehicles.