A growing number of charities are now considering the impact of their investments on the world. This can involve applying an impact lens to their entire investment portfolio and also including specific impact investments.
Impact investment refers to investments that are made with the explicit intention of generating positive, measurable social and/or environmental impact alongside financial returns.
The Impact Investing Institute has produced a practical guide specifically for charities and foundations “Investing with impact in the endowment: Why do it and how to get started”. It covers definitions, first steps, practical considerations and case studies from a range of foundations that have made impact investments.