The Power of Impact Investing - a call to action
Many people have given generously to help combat the many critical issues—poverty, food insecurity, homelessness, human trafficking, illiteracy—and many other needs. For some, as their wealth grew, they also increased their donations to help elevate the work of charitable organizations.
Over the past few years, many savvy and sophisticated investors have recognized impact investing—investments made to generate positive, measurable social and environmental impact alongside a financial return—as a new opportunity to deploy capital in companies and growing markets with entrepreneurs that can deliver both economic and social returns. Impact investing is an effective tool and powerful option for investors to advance their mission, values and financial goals.
The Impact Investing Model
Donors invest their charitable assets in for-profit businesses that return a financial profit and have a measurable social and spiritual impact. The financial gain generated by the investments has the potential to acquire more capital to grow a donor’s charitable contributions. It’s about providing capital to companies that are aligned with those social and spiritual intentions. In essence, a better mousetrap that puts more capital to work to help those in need.
Impact investing is not a new concept. It emphasizes that charity and profit are not mutually exclusive, and that they can work together for good. The core beliefs of impact investing include examining the relationship between stewardship and ownership, understanding that capital provides a level of influence and the value of an abundant economy related to a person’s ability to serve. It’s a more powerful way to drive global social change.
Experts anticipate that this approach will continue to grow as it’s expected that more than $24 trillion worth of wealth will be transferred to millennials (those aged 24 to 39) over the next 15 years. Studies have shown that investments that are socially responsible and sustainable are a way to lure millennial investors. Women are also driving the growth of impact investing. A recent study found that 95 percent of women ranked “helping others” and 90 percent rated “environmental responsibility” as essential.
How it Works
The establishment of an Foundation Fund with the Impact Foundation is an opportunity to make a sustainable difference. An Impact Account is a particular type of donor-advised fund that is purpose-built for impact investing. A simple, three-step process enables investors to let their investments reflect their values, follow scripture and be a force to social change:
Establish an Account. Open your account with TrustBridge Global Foundation and grant to it.
Recommend Investments. Impact Foundation on behalf of TrustBridge will vet companies and manage the required documentation.
Reinvest or Donate. Use your financial returns to reinvest or donate to charity.
If you want to have a positive and sustainable impact on the world’s social issues and that the double impact investing can deliver—first funding transformational businesses and second, distributing profits available to be granted or reinvested—open an account and use your financial power to change the world!