When Does Impact Investing Make the Biggest Impact?


credit:

The concept of "impact investing" has taken off in recent years, with more than $1 trillion in assets under management.

But a new study out of Harvard Business School suggests that while impact investors do behave differently, the vast majority of their investments end up in companies that are able to raise capital from other, non-impact investors.

"If there were 20 other venture capital funds that would have been just as happy to give $1 million to that firm, then the capital isn't additional," says one of the study's authors.

"This seems to be the case for the majority of the portfolio companies we identify."

The study found that impact investors are more likely to invest in disadvantaged regions and industries, and they exhibit more risk tolerance and patience, but they are also more satisfied with their investments than traditional investors.

The study also found that employee satisfaction declines after an impact investment.

Read the Entire Article


Selected Foundation News

A customized collection of news from foundations from around the Web.

Just Trust Ceo Ana Zamora on Why Criminal Justice Reform Is a Philanthropic Issue

When Ana Zamora was 8, her older brother was arrested for stealing from her parents. "And so I remember hearing a knock on the door one night and seeing police officers come into our house and...more

Will Facebook Support Of Nonprofits Continue To Wither?

If you've ever wondered what it's like to be a billionaire in China, you're in luck. The country's state-run Xinhua News Agency has listed the net worth of the country's richest person, property...more

Rtd Police Chief Named President of Fbi Nonprofit Leader Education Organization

The chief of Colorado's Regional Transportation District Police Department has been elected president of the FBI Law Enforcement Executive Development Association, KDVR reports. "I am truly...more

Amid Rising Antisemitism, Rosen Helps Lead Colleagues in Push for Funding to Protect ...

synagogues, Jewish community centers, mosques, and other "at-risk faith-based and other nonprofit institutions" in urban, suburban, and rural America are in need of extra security, and a group of...more

Hisd Announces Opportunities for Community to Learn More about Potential Bond Proposal

The Houston Independent School District has been without a bond since 2012, and that's left it with more than $10 billion in projects that need to be completed. Now, in the wake of Hurricane...more

As Fundraising Leadership Looks to Scale Giving &Amp; Comply with Policy Givzey Exceeds $20 ...

It's not every day that a company surpasses $20 million in donations under management, but that's exactly what Boston-based Givzey did just two months ago, per a press release. Givzey is a "smart...more

Three Things Midcoast Nonprofits Should Do during This Season of Change

"It can take a good year (or two) for a new executive to learn everything about the nonprofit, from operations to processes to donor relationshipsespecially if they hire 'from away.' And discerning...more

2024 Us Severe Weather

El Ni ? o is officially over, but that doesn't mean the US is out of the woods when it comes to severe weather. Already this year, we've seen more than 700 tornadoes, USA Today reports, and the...more

Chair of Rural Education at Texas Tech Established by a Generous Donation
Foundation: Brown Foundation

"When you couple that with their commitment to rural education, it became clear the College of Education was the perfect place to house the Prentice Farrar and Alline Ford Brown Foundation Chair of...more

The Rinehart Affair: How Crude Philanthropy and Clumsy Gratitude Can Undermine Our ...

Gina Rinehart is Australia's richest person, and she's not happy about two portraits of her on display at the National Gallery of Australia. The oil portraits by Vincent Namatjira are...more






Global companies like General Motors, Wal-Mart, Bloomberg, Facebook, Hewlett-Packard, Intel, Johnson & Johnson, Mars, Novelis, Sprint, Proctor and Gamble and REI are calling out for necessary market changes to make it easier to buy and access more renewable energy.




Federal Government Grant and Assistance Programs



Edited by: Michael Saunders

© 2008-2024 Copyright Michael Saunders