If reviewing risk disclosures and considering the finer points of unrelated business income tax do not sound enjoyable to you, then take heart. You can rest easy knowing these are the kinds of things Impact Foundation vets for each investment and you don't have to. 

What sorts of things constitute structure/governance?

In the third phase of our vetting, we look at the underlying documents, governance, and leadership of the organization to make sure the investment is structured well to achieve our financial and impact goals.

In a prior post, we discussed the framework we use at Impact Foundation to vet potential investments. Broadly, we look for (1) alignment with our charitable purpose (i.e., the impact), (2) financial return, and (3) structure to determine if an investment fits on our platform. 

Regarding financial return, traditional investors look to maximize IRR (internal rate of return) balanced with factors like time horizons, diversification needs, and appetite for risk. To this list, Impact Foundation also adds considerations of the impact sought by a particular investment.

When we look at the impact of a particular investment, we want to find ways that the company is intentionally seeking positive social, spiritual, and/or environmental impact that aligns with, and furthers, our charitable purpose. Not merely aspirational in their intended impact, the enterprises that we invest in have specific plans for how to achieve these goals. 

More than once, we've been asked the question whether a donor/investor can put their personal capital in the same deal as their charitable capital. This blog addresses a few of the technical considerations involved in such questions.*

A generation ago, the nonprofit community was the main place to find people focused on transforming the world for the better. It used to be that if you wanted to make money you’d start a business and if you wanted to make a dent in global poverty, transform a local community, or care for widows and orphans, you needed a charity. It's an entirely too common, and damaging, false dichotomy. Too many business leaders have assumed that their chief contribution to the world was through the money they gave away. 

Impact investing from a Christian perspective necessitates a deep understanding of what the bible says about the issues involved – namely, how to invest, where to invest, and for what purpose. Seems obvious as I write it, and yet prior to last week, “develop a workable theology of capital” was nowhere near the top of my to-do list.

We're far from expert at this stuff, but we at least want to enter (or start) the conversation. A 15-minute Google search suggested this isn’t a conversation happening very many places yet.

For followers of Jesus, there’s a tension we are constantly working to manage: the impact of what we do can never be the most important thing we seek and yet we’re called to love (through words and actions) those around us in the name of Jesus. As I've read over the collection of what we've shared on the blog, I'm worried that we could be sending the message that the impact of what we do is the most important thing. That can't ever be the case. The Most Important Thing is Jesus. Everything else flows from that.

Momentum. That's the word of the day every day at Impact Foundation. We're trying to achieve and maintain enough momentum to accomplish our mission - helping donors invest in businesses that do good and make money. As we say a lot, "You can't steer a parked car." We've gotten going and now have enough activity so there's something to shape. It's exciting and sometimes we forget to share what's been happening. So here's a short update. 

I can't bring myself to follow the "rules" of marketing. They say I should add our voice to the commentary on the Zuckerberg/Chan gift. They say I should set aside time to write every day or every week on a regular basis. Don't worry so much about quality; just publish. I can't do it their way, though.

Confession time: I didn't just write that post hoping it would help our audience; I wrote it as a reminder and caution for myself.

You see, a few years ago, I found myself feeling crushed by life--a big leadership role at work and high performance expectations coupled with the demands of a growing family left me cranky, stressed, worn out, and pretty much un-fun to be around. I'd accepted an ill-fitting burden called "the american dream" and mixed it with some Jesus stuff and come up with my own gospel narrative that goes something like this: I work hard; therefore, I find success.