Impact Investing is a hot topic for foundations, philanthropists and investors alike. And rightfully so.
As needs in our communities grow faster than dollars, the Council is joining the conversation about unlocking new capital for social good. For decades, foundations have made impact investments that intend to generate financial and social returns to complement grants, partnerships, advocacy, and other tools in the philanthropic toolbox.
What is impact investing?
We define impact investing as any investment activity that intends to generate positive social and financial returns.
How is the Council involved?
In 2013, the Council is joining the impact investing conversation happening among foundations and other types of investors. As a connector, the Council is:
- Listening to our members and making connections.
- Organizing provocative conversations among foundations and other partners.
- Aggregating resources to demystify the process.
- Building relationships with thought leaders and intermediaries
- Hosting an ongoing blog series on RE: Philanthropy.
How can you get involved?
Governments, multinationals, businesses, and individuals are increasingly organizing to take action in response to climate change. Foundations can play an active role in this growing movement.
Can business acumen help overcome social challenges? Can entrepreneurial zeal generate innovative solutions? Can the energy of a new generation be harnessed to lead us forward on pressing causes?
In late May I attended a meeting in Atlanta focused on impact investing hosted by the Federal Reserve Bank of Atlanta, Southeastern Council of Foundations (SECF) and the Council on Foundations (Council) about impact investing.
While the globalization of markets has dispersed investments around the world, we’ve hatched a plan to bring capital back to our communities in a transparent, coordinated, and collaborative way.
The Social Impact Exchange exists to build a growth capital marketplace that supports scaling high-impact nonprofits in the U.S.
At the Council on Foundations Annual Conference in San Francisco, there was enormous interest in how foundations can lead together by aligning all of their assets with their missions.
This flow chart was designed by the Community Foundation of Louisville to describe the process of evaluating, processing, and making impact investments in their community.
While attending the Council on Foundations annual meeting in San Francisco last week, I learned about exciting new trends in philanthropy. The theme that really stood out was the graying lines of business, investing, and philanthropy.
Helpful article published by Adler & Colvin summarizing the key differences between Mission-Related and Program-Related Investments for Private Foundations.