This report contributes to a growing literature on the role that anchor institutions—major nonprofit institutions such as universities and hospitals—can play in promoting the revitalization of the economically challenged cities and neighborhoods in which they are located. It aims to fill a gap in that literature by focusing specifically on the value of engaging in significant community investment to such institutions themselves, rather than on the moral imperative to do so or the value to communities. In the absence of sustained attention to such considerations of institutional self-interest, the report argues, such institutions tend to overestimate the costs and risks and underappreciate the potential benefits of investment. The first half of the report explores major categories of costs and benefits and sketches a set of basic guidelines for effective community involvement. The second half provides an overview of proven and promising strategies, discussing the needs and aims that each can serve, its potential costs and benefits, and relevant implementation considerations. The main purpose of the report is to provide guidance to decision-makers within anchor institutions who are contemplating prospects and avenues for investment in their local city or community.