M4M Finds Foundations Stepping Up Commitment to Mission Investment
posted on: Friday, October 23, 2009
by Julia Craig
More for Mission (M4M) recently conducted a survey to determine the levels at which its members designated assets for mission investing. And there’s great news: the 39 surveyed M4M members reported that foundations currently engaged in mission investing plan to significantly expand their portfolios over the next two years. M4M defines mission investing as including both program-related investments (generally below market rate investments serving a programmatic purpose), and market-rate investments (usually provide market-rate returns as part of a social mission).
At the end of 2008, respondents had 4.7 percent of their assets in mission investments. By the end of 2009, respondents expected to have 6.9 percent of their assets in mission investments, growing to 23 percent by the end of 2011. This would be an impressive almost-four-fold increase in assets for mission investing among respondents over the course of two years!
When asked about their motivation for participating in mission investing, majority of respondents named responsibility and alignment of identity: “Foundations noted that they were essentially motivated by a desire to advance institutional responsibility – that investors have a responsibility to hold institutions accountable for their social and environmental impact. Others noted that they saw mission investing as a way to reflect the values and mission of the foundation rather than contradict them.”
In Criteria for Philanthropy at its Best, the section on commitment calls on grantmakers to invest at least 25 percent of its assets in ways that support its mission. This includes program-related investments, market-rate mission investments, shareholder activism, and other strategies to leverage the massive capital foundations hold in their non-grantmaking coffers.
Kudos to those foundations participating in More for Mission for committing a significant proportion of their assets for mission investing and leading by example.
Do you think mission investing is an effective strategy for foundations seeking to leverage their assets to achieve impact beyond grantmaking? If so, what would spur more foundations to sign on to the M4M campaign? Let us know what you think in the comments.
Julia Craig is research associate at the National Committee for Responsive Philanthropy.Labels: Mission-related investing, More for Mission, Philanthropy at Its Best
More for Mission (M4M) recently conducted a survey to determine the levels at which its members designated assets for mission investing. And there’s great news: the 39 surveyed M4M members reported that foundations currently engaged in mission investing plan to significantly expand their portfolios over the next two years. M4M defines mission investing as including both program-related investments (generally below market rate investments serving a programmatic purpose), and market-rate investments (usually provide market-rate returns as part of a social mission).
At the end of 2008, respondents had 4.7 percent of their assets in mission investments. By the end of 2009, respondents expected to have 6.9 percent of their assets in mission investments, growing to 23 percent by the end of 2011. This would be an impressive almost-four-fold increase in assets for mission investing among respondents over the course of two years!
When asked about their motivation for participating in mission investing, majority of respondents named responsibility and alignment of identity: “Foundations noted that they were essentially motivated by a desire to advance institutional responsibility – that investors have a responsibility to hold institutions accountable for their social and environmental impact. Others noted that they saw mission investing as a way to reflect the values and mission of the foundation rather than contradict them.”
In Criteria for Philanthropy at its Best, the section on commitment calls on grantmakers to invest at least 25 percent of its assets in ways that support its mission. This includes program-related investments, market-rate mission investments, shareholder activism, and other strategies to leverage the massive capital foundations hold in their non-grantmaking coffers.
Kudos to those foundations participating in More for Mission for committing a significant proportion of their assets for mission investing and leading by example.
Do you think mission investing is an effective strategy for foundations seeking to leverage their assets to achieve impact beyond grantmaking? If so, what would spur more foundations to sign on to the M4M campaign? Let us know what you think in the comments.
Julia Craig is research associate at the National Committee for Responsive Philanthropy.
Labels: Mission-related investing, More for Mission, Philanthropy at Its Best
posted by Julia Craig at
11:09 AM
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