How much Impact and Financial Return is Possible?
Without clarity, we can’t know what to expect when entering into impact investments; lack of clear expectations will almost always lead to disappointment.
That’s why we've developed a framework that can help make sense of the interplay between impact and financial return.
We have seen hundreds of companies tackling a wide range of issues through business models as diverse as bus seat manufacturing, hydroelectric power, software development, and a cattle feed lot. Likewise, the potential return for investors is equally varied.
Three Trends in Impact Investing for 2018
Impact Foundation exists to invest charitable capital for economic, social, and spiritual transformation, our version of impact investing. It's the next iteration of philanthropy because innovative foundations and givers have recognized that all enterprises, not just charities, can produce both social and financial results on a spectrum from positive to negative. While we whole-heartedly believe impact investing is here for the long run, not everyone lives every day in this world. That's why we bring you this summary of the most important conversations in impact investing.
Losing Money for Jesus and Other Bad Ideas
This donor expressed concern that his philanthropy hadn’t accomplished much. He couldn’t point to measurable impact and the constant requests for funding left him feeling a bit used. Worse, he felt a bit insulted that these well-meaning evangelists were abusing the term “business” which to him connotes excellence, discipline, and the pursuit of profit for the sake of fueling generosity.
He declared, “I’m done with this whole “losing money for Jesus” idea.”
35 Players in the Impact Investing Space
From officially being coined as a term in 2006 to being named as Forbes' top trend in philanthropy for 2015 and 2016, impact investing is enjoying rapid growth. Philanthropy is changing quickly with donors increasingly looking to invest charitable capital in companies and charities that pursue impact alongside financial profit. Even Bain Capital recently announced an impact investing fund.
With so many organizations in on the action, it can create confusion for those just venturing into the conversation. This blog attempts to explain the landscape and offer a survey of many of the organizations involved in impact investing (not an exhaustive list, but a start).
An Entrepreneur’s Daughter
In the late 1980’s, before it was vogue to use the word “startup” my mom became the first employee of a new business. As the youngest of five in a financially strapped household with a single mom, I spent many hours at my mom’s side while she worked. I went with her to talk with employees, respond to alarm calls in the middle of the night, visit bankers, talk through negotiations with lawyers, review marketing materials, and fiddle with broken copiers.