Impact investing presents something of an existential challenge for foundations. Convention dictates that investors manage a corpus to maximize risk-adjusted financial returns, in the hopes it will underwrite philanthropic giving for social impact into perpetuity. By seeking to deliver a blended financial and social return, impact investing forces two culturally distinct practices be simultaneously pursued: money management and grantmaking.
At the urging of numerous provocateurs and pioneers many foundations are exploring the intersection of these two worlds and have begun to slowly change their practices; they are embracing mission-related investing, even while acknowledging strong financial performance is essential to financial sustainability.
Interested to read more? Read the rest of this blog and download our two new case studies (W.K. Kellogg Foundation and RSF Social Finance) that reveal practical lessons about successful philanthropic impact investing: http://www.ssireview.org/blog/entry/mission_driven_returns