Posts in Technical stuff
"Kingdom Impact Investing" - it's the least bad option

Part 1 in our "Defining and Measuring Series"

To reach broader adoption, kingdom impact investing needs a unified definition and a basic set of metrics to help determine if it works. Over the next few blogs, we'll explore these issues but first can't we find a better phrase? 

"Kingdom" in our usage refers to the kingdom of God, as Jesus described it in His teachings. Not every follower of Jesus is comfortable with this phrase. For us at Impact Foundation, the hope of this Kingdom drives everything we do. Thus, it seems a suitable adjective to differentiate our version of "impact investing" and the least bad option. 

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What do we measure?

part 3 of 3 in our "Defining and Measuring Series"

Tracking performance of investments to determine if we're meeting our goals for spiritual transformation feels like the holy grail of Kingdom Impact Investing. It’s time to put forth a working version that can be implemented now and improved over time because we have seen the power of Kingdom Impact Investing and want to unleash it for more good.

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Investment Criteria 3: Structure and Governance

Who doesn't love to read a good legal document? Want to curl up by the fire with a long operating agreement and private placement memorandum? 

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. 

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Investment Criteria 2: Financial Return

Regarding financial return, traditional investors look to maximize IRR (internal rate of return) from every investment. Factors like time horizons, diversification, and appetite for risk influence the conversation as well. To this, we also add considerations of the impact we seek from a particular investment.

Sometimes achieving our social, spiritual, or environmental goals means delaying or sacrificing financial return. We refer to these investments as Impact First. In other instances financial return may be commensurate with traditional investments of the same risk type while also providing significant impact. These enterprises are Finance First investments. 

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Investment Criteria: Overview

Impact Foundation provides a streamlined way to invest charitable capital in businesses that seek profit with purpose.

Streamlined does not always mean easy, but hopefully we deliver on our goal of absorbing the complexity for the donor-investors we serve while providing great enterprises with the investment capital they need in a timely manner.

We vet potential investments in three broad categories: financial return, alignment with our charitable purpose, and...

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Investment Criteria 1: Alignment with Our Charitable Purpose

In a previous post, we talk about the 3 major criteria Impact Foundation uses to vet investments. One of the most significant is alignment between the proposed investment opportunity and our charitable purpose - the reason the IRS has granted us tax-exempt status. 

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.

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