Why not harness the power of markets as part of your change-making strategy? This post explores three ways to pursue outsize impact with your giving by leveraging the power of markets.
For example, let’s say you have a private foundation, and you distribute the required 5% of the corpus each year as grants to charitable entities. What about the other 95%? It doesn’t have to just sit there in traditional investments. Think about how much more leverage you can get from investing those charitable assets in ways that are aligned with your values and your change-making goals. These days, many donors are finding that mission-aligned investing is not concessionary. What this means is you don’t give up a market rate of return to align your charitable asset investment strategy with your vision for a better world.
We've already talked about Australian entrepreneur Andrew Forrest and his pushto develop clean hydrogen technology through his business holdings. Mellody Hobson of Ariel Investments also plays a leading role as a board member of other operating businesses and she has championed ESG investments as well as reforms to corporate governance and practices on multiple levels in ways that are aligned with her broader philanthropic aims.
Tony Davis brings all three of these market-harnessing strategies together. After a successful stint as a cofounder of the Anchorage Capital Group, he stepped aside from the hedge fund world and set up his family office. From the start, he maintained a philosophy that there was no reason to separate his efforts to make the world a better place from his ongoing engagement in the market as an investor. He set up his family office to deploy his assets for making change across the full spectrum, from charitable grants all the way to maximizing market investments. His vision for social change ultimately led him back into the market to help others do the same. He founded the Inherent Group as an SEC registered investment fund focused on sustainable ESG investments, not just for his own money, but for others as well. It operates alongside the Inherent Foundation, through which he continues to engage in charitable grant-making and PRIs.
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These are the same materials we use with the social entrepreneurs in our accelerator program and the funders we coach one on one. The world has never been more in need of a new, greatest generation of change agents and that's why we're opening up free access to these materials to anyone who's ready to make use of them!