Today in our philanthropy and impact investing mini-roundup: foundations must find ways to align their investments with their values.
In the Stanford Social Innovation Review, impact investing pioneers Cathy Clark, Ben Thornley and Jed Emerson ask, “How long can philanthropic foundations and charities—institutions given life in our tax code to promote justice, equality, education, and other ‘charitable’ purposes and values—not work to find ways to align their investments with their values?” highlighting the Kellogg Foundation as a prime example:
While direct investments in individual enterprises are highly unconventional for an institution of WKKF’s size ($8 billion), the foundation discovered it was an innovative method to align the MDI program with WKKF’s mission, was generally more impactful than fund investments as measured by WKKF’s own programmatic measures, and provided deeper insight into new models of social service delivery.
Essentially, we have to deliver social and environmental impact at scale. At scale, that’s key. And to do that, it requires more capital than what governments and philanthropy have alone. So our effort has really been to unlock capital markets. Plus, the timing is right. We see a growing number of investors, particularly younger investors who don’t want to wait to achieve their philanthropic goals.