en français : Motivations
Why foundations are motivated to impact invest
In the process of creating its guidebook, Purpose Capital (now Rally Assets) conducted an online survey of 40+ Canadian foundations, 20 one-to-one interviews and three focus groups in 2017 to ensure a representative sample. The motivations listed here are the most commonly referenced from that in-depth research with practitioners.
COMMIT MORE CAPITAL TO OUR MISSION
Endowment capital represents the vast majority of a foundation’s assets but is rarely used for any purpose beyond a financial return. Impact investments help unlock this capital by generating financial returns while supporting the mission.
ALIGN OUR MONEY WITH OUR VALUES
Impact Investing can allow you to invest in opportunities that all stakeholders can feel morally comfortable generating financial returns from. They can help ensure that your investments aren’t working against the world you want to create.
SUPPORT NEW SOLUTIONS TO OLD PROBLEMS
Impact Investing can support innovative, viable solutions to the issues we want to address, enabling social enterprises to scale and bring new projects and products to market.
MANAGE FOR RISK AND RETURN THROUGH DIVERSIFICATION
Impact investments in private markets can reduce portfolio risks and create growth through diversification into new sectors, geographies and business models – for example, you could focus on investments that complement your public portfolio.
ENGAGE DONORS AND TRUSTEES
Impact Investing can make fundraising foundations more attractive to young investors, entrepreneurs and trustees who believe in market-based solutions to social and environmental issues.