Investing for Change: How Your Investments Can Make a World of Difference
In the ever-evolving financial landscape, a growing trend is emerging—using investments not just for personal gain, but for societal good. But can investments truly change the world? The answer, according to the Impact Foundation, is a resounding yes.
The Untapped Potential of Charitable Assets
Most charitable assets are invested without regard for mission. In addition, a staggering amount of financial potential remains untapped. Roughly $1 trillion of assets have been set aside by donors in donor advised funds and private foundations. But only 10% is given each year.
A special kind of donor advised fund from Impact Foundation can help put those assets to work for good by investing charitable capital for economic, social, and spiritual transformation. They provide a streamlined way to invest in enterprises that can make a difference while earning a financial return that can grow your giving.
A New Perspective on Investing
But can impact investing truly make a difference? Impact Foundation points towards a number of success stories from partnering with their donor/investors to deploy almost $500M in charitable capital to over 500 companies and creating tens of thousands of jobs in 54 countries.
Investing charitable capital can have a multiplier effect. As returns are made to the donor/investor's Impact Account, they can be reinvested in other organizations. From supporting a single initiative to fueling multiple projects, the ripple effect of such investments is vast and varied.
Launch Capital Partners and HOPE Global Investments, LLC., are two of many transformational companies in Impact Foundation’s portfolio:
Launch Capital Partners is a private equity firm that deploys capital to acquire and operate multifamily real estate assets. Founded in 2015, they believe market returns and social impact are not mutually exclusive. Simultaneously benefiting investors, refugees, and internationals, Launch Capital Partners promotes thriving communities through its relationship-oriented property management model and community partnerships. They provide investors with the opportunity to earn market-rate returns while creating transformative social impact. Read more.
HOPE Global Investments, LLC., is an investment vehicle of HOPE International that enables accredited investors to provide debt financing to HOPE microfinance institutions around the world for follow-on lending to local small and medium enterprises. Building on HOPE’s 21-year track record of successful microfinance lending and gospel proclamation, they present an opportunity for low-risk, high-impact investing in hard-to-reach small businesses like David Harerimana’s car repair and reupholstering shop in Rwanda. Read more.
Making an Impact: The Process
For those wondering how they can join this movement, the Impact Foundation offers a clear and streamlined process:
- Establish an Impact Account: Donors create an Impact Account (a donor advised fund) and grant to it.
- Recommend Investments to Impact Foundation: The donor/investor recommends investments, including loans to charity, limited partner interests in a real estate/private equity/venture fund, or direct equity investments.
- Watch the Transformation: Companies regularly report on financial growth and progress.
- Reinvesting for Good: As investments mature and yield returns, they can be reinvested or granted to charity, creating a cycle of good that continues to benefit communities and causes.
You can learn more about how impact investing with the Impact Foundation works with this video and read stories from their portfolio companies here.
In Conclusion
As the world faces an increasing number of challenges, the importance of directing resources in a meaningful way becomes evident. The Impact Foundation's approach to investing offers a fresh perspective on how financial assets can be used for the greater good, changing the world one investment at a time.
If you've ever wondered if your investments could change the world, the answer is clear: with the right approach and mindset, they certainly can. For additional information contact: Ann Oleson, Jay Kelly, or Bryan Chrisman.
