What Is Impact Investing?

Impact investing is a strategy for investors who want to make a positive social or environmental impact while also generating a financial return. Impact investing makes a direct connection between values-based priorities and how investors’ capital is used. These funds not only report on financial performance but also try to both instigate and quantify social impact. For example, with these sorts of gifts, you’ll be able to see exactly how many schools your investment helped to build or what percentage a carbon footprint was reduced. One advantage of this kind of investing is that you can support causes like poverty and community development that public financial markets tend not to address.

Impact investing is a category that falls somewhere between charitable giving and socially responsible investing. Charitable giving involves investing in social benefits while expecting no direct return; socially responsible investing expects financial returns while avoiding social or environmental harm; and impact investing produces both results. You can choose among myriad organizations with admirable causes. The impact investment market has helped address challenges in sectors that include sustainable agriculture, renewable energy, and conservation. Impact capital has also assisted with clean technology projects and basic needs like housing, healthcare, and education. 

An important issue with impact investing is determining which businesses are best prepared to use your contribution most efficiently, and deliver on both financial return and social impact. Keep your investment goals in mind as you make your decision and do as much research as you can before making an impact investment commitment. Some organizations have never operated with sufficient funds and might be too underdeveloped, or not quite ready to expand if given funds. Some might need a long period of time before you would see a return on your investment.

Where should you go for advice on how to align your values with your financial portfolio? Canadian National Christian Foundation can help you grow your charitable capital for both mission and impact. Our aim is to help you manage your assets and guide you through creative giving solutions. We can handle non-cash gifts quickly and effectively, getting the money into the field as soon as possible with 100% of your principal always available to grant out.

About Canadian National Christian Foundation

CNCF is a community of givers who are seeking to advance the Kingdom of God by connecting the resources God has entrusted to them with His work on earth.

Similar to other public foundations, CNCF’s difference is the commitment of its staff and directors to the Word of God, its non-denominational history and status as a Christian foundation, and its ability to allow donors to donate anonymously, at a time and gift value of their choosing.  Learn more by visiting our website.