By Jessica Droste Yagan
Last month, I attended the Mission Investing Institute (MII) at the Kresge Foundation in Troy, Michigan. Hosted by the Mission Investors Exchange, the MII is a “boot camp” of sorts for foundation leaders who are in the process of building or activating impact investing strategies. (Their annual conference will be coming to Chicago in 2018!)
To me, it’s a no-brainer that ALL capital designated for charitable purpose should be optimized to create public good (not just the grant dollars). I have been heartened to see more and more foundations dipping their toes in this space. At the conference, I saw great progress in two areas in particular: mission-related investments (MRIs) and place-based program-related investments (PRIs).
On the endowment side (MRIs), foundations are becoming more aware of the impacts of the investments in their endowment and how those impacts align (or not) with the foundation’s mission. Many are also intentionally investing in companies, funds or financial instruments that screen out negative impacts (socially-responsible investing) or drive positive impacts. Now, it’s easier than ever to learn from and follow leading foundations in this area. Foundations like the MacArthur Foundation are making impact investments and sharing their lessons learned. There are also a plethora of strategies and advisors who can help foundations with MRIs.
On the disbursement side (PRIs, as a complement to grants), foundations are being more flexible with the type of capital that will create impact. Most foundations actively investing in PRIs are doing so through place-based strategies, meaning they are making investments for the development of jobs or infrastructure in a very specific location. It helps that a well-established […]