Exploring Impact Investing

Exploring Impact InvestingTake a moment to think about your investment portfolio. Do you know exactly where you are investing your dollars? When you think about your personal values in relation to your investments, do they align? If not, you may want to consider impact investing, which allows you to make a return on your investment while, at the same time, boosting organizations that are doing good in the community.

Last week, Community Foundation donors had the chance to explore the topic of impact investing in depth at our most recent Donor-to-Donor event. Donors heard from a panel of experts and from a Community Foundation donor who is already using impact investing to make a difference with his family’s charitable fund. 

According to the Global Impact Investing Network, a leading resource on impact investing, impact investments are investments made into companies, organizations and funds with the intention to generate social and environmental impact in addition to a financial return. In some cases, making an impact investment involves a willingness to accept a lower expected return in order to accomplish the desired social and environmental impact.

When donors open a donor-advised fund or any other type of charitable giving account with the Community Foundation, the assets in the account are invested so the charitable dollars can grow. The Community Foundation allows donors to request how their assets are invested, and some donors opt to make impact investments through their charitable accounts.

Gregg Lombardi, a Community Foundation donor, invests assets from his family’s donor-advised fund in organizations that focus on revitalizing low-income neighborhoods in Kansas City.

“My wife and I are excited about impact investing because it gives us the opportunity to do a lot more good with our money,” said Gregg. “If we have the chance to make a return on our investment while simultaneously helping to turn a bunch of abandoned properties in the urban core of Kansas City into good, quality housing for low-income families, we’re going to do that. The Community Foundation deserves a lot of credit for presenting us with multiple impact investment options.”

Stephen Samuels, executive director of Greater Kansas City Local Initiatives Support Corporation (LISC), shared how his organization partners with stakeholders and local donors to invest in resources that help enhance communities in the Kansas City metro area. By leveraging investments, LISC enables organizations to create systemic change and sustainable communities. David Shantz, director of advisor relations at Calvert Impact Capital emphasized that impact investing should be a priority not just in donor-advised funds but in traditional brokerage accounts, too. 

If you have questions about impact investing and your donor-advised fund, please contact us at 816.842.0944 or info@growyourgiving.org.

Community Foundation Content Specialist Ashley Hawkins

 

Authored by: Ashley Hawkins, Content Specialist

 

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