Faith-Based Investing: Beyond Screens to Intentional Impact

For decades, faith-based investing has been reduced to negative screening—avoiding tobacco, alcohol, and adult entertainment. Steven Libman, founder of Investing with Purpose, calls this approach lazy and argues for a higher standard: intentional faith-driven investing that actively builds aligned outcomes. Libman’s multifamily real estate platform embeds ministry into operations, providing free apartments for on-site staff who foster community through movie nights, farmers markets, and pastoral support. This model, he says, creates a durable competitive advantage—tenants with strong social ties are 45% less likely to move, reducing turnover costs and stabilizing cash flow. Libman contrasts this with the ESG sector, which he claims damaged values-aligned investing by promising impact and returns but delivering neither, citing weak performance data.

The core question Libman poses to investors is simple yet disorienting: if your grandchildren inherited your portfolio, what would it reveal about your beliefs? He challenges the conventional wisdom of separating returns from values—funding misaligned activities to generate philanthropic dollars later. Instead, he advocates for capital allocation that votes for what you believe in. Investing with Purpose provides dual reporting: standard financial KPIs alongside ministry impact metrics, such as resident engagement and acts of care. Investors can also participate in quarterly on-site serve days, offering tangible connection to their capital’s impact.

Libman emphasizes that faith-based investing is not about sacrificing returns. The data increasingly shows that principled operations and strong performance are compatible. For those new to values-aligned investing, real estate offers an accessible entry point—a tangible asset class where the operator’s philosophy directly shapes community outcomes. The broader thesis is that every dollar is a vote, and intentional alignment transforms investing from a passive financial activity into an active expression of values. As investors demand greater transparency, Libman’s model provides a blueprint for genuine alignment beyond surface-level labels.