1. Presented by
Impact Investing:
Funders/investors discuss trends/
influences and the impacts for Nonprofits
Panelists: Clare Golla, Daniel Nielsen, Tom Trinley
Moderator: Professor Pam Schilling
2. Impact Investing
Topics for Our Discussion Today
1. What is
“Impact”
Investing
2. Trends in
Impact
Investing
3. Investment
Process
4. Nonprofit
Challenges
We are here to talk about the latest
developments and trends in impact
investing and its potential to
influence your nonprofit.
3. Impact Investing
Introductions
Panelists/Moderator Background
Clare Golla
(Panelist)
Financial Advisor & Vice President
Bernstein Global Wealth Management
Previously: ShoreBank
Daniel Nielsen
(Panelist)
Director-Socially Responsible Investing
Christian Brothers Investment Services Inc.
Previously: General Board of Pensions, Global
Philanthropy Partnership
Tom Trinley
(Panelist)
Director-Finance & Administration
Gaylord and Dorothy Donnelly Foundation
Previously: Skipping Stone Entertainment/Trinley
Pictures, WFLD-Fox Chicago, Museum of Broadcast
Communications – Chicago
Pam Schilling
(Moderator)
Associate Professor-Finance/Strategy
North Park University
Previously: Booz & Co, Huron Consulting Group,
NAVTEQ, PwC/Diamond, Sprint
4. Impact Investing
Topic 1 – What is “Impact Investing”
To understand,
we must look at
the goal for the
investment
5. Impact Investing
Topic 1 – What is “Impact Investing” (cont.)
Use of Capital and Expectations
Traditional Investor
Wal-Mart,
Bridgewater
Avg/Above Avg
Market Returns
Little to none
expected
Philanthropists
Gaylord & Dorothy
Donnelly Foundation
Grants, no financial return
Improve well-being /
solve societal and
environmental
problems
Responsible
Investor
Sustainable
Investor
Impact
Investor
Same??
FinancialReturnESG*Impact
* ESG=Environmental, Societal, Governance
6. Impact Investing
Topic 1 – What is “Impact Investing” (cont.)
Use of Capital and Expectations
Traditional Investor
Wal-Mart,
Bridgewater
Avg/Above Avg
Market Returns
Philanthropists
Gaylord & Dorothy
Donnelly Found.
Grants, no financial
return
Improve well-being /
solve societal and
environmental
problems
Responsible/
Sustainable Investor
Domini Social
Investments,
Gaylord & Dorothy
Donnelly Found.
Seek financial return
Screen in/out firms
Seek a “do no
harm” approach.
Passive, indirect.
Impact Investor
Bridges Ventures,
Social Finance,
Gaylord & Dorothy
Donnelly Found.
Direct investment/mgmt
Seek financial return
Hands-on
advisor, measure
impact, seek
greater scale
Little to none
expected
FinancialReturnESG*Impact
* ESG=Environmental, Societal, Governance
7. Impact Investing
2. Trends in Impact Investing – Starter Points
Maturing, greater interest in
mainstream financial
investment and products
focused on ESG impact.
Rising social
entrepreneurship
Corporations getting
involved in impact
Philanthropy intersecting
impact investing
Measurement is
now the norm
PositivePushes
8. Impact Investing
2. Trends in Impact Investing – Starter Points (cont.)
QuestionsRemain
Is there impact-ful activity?
u Recent research from Center for Effective
Philanthropy:
§ 41% of large foundations engage in
impact investing
§ 53% are not and not sure they will in the
future
§ 2% of endowment and 0.5% of grant
funds put towards impact investing
§ 82% concerned primarily about financial
return of investments, and are betting at
achieving goals via giving
u While a study compiled by the Global
Impact Investing Network and JPMorgan
estimated that in 2014, philanthropists
planned to make $12.7-billion in impact
investments, a 20% increase over 2013
10. Impact Investing
? Will philanthropy decline or compete with impact investing dollars
Are givers/philanthropists looking for "new ways of being philanthropic.”, if
philanthropists are introducing new dollars to make impact investments, they are being
more philanthropic; but if philanthropists are taking previously allocated dollars for
donations and redirecting them to impact investments, they are being less
philanthropic.
? Is there rising competition from social enterprises
“Today, more foundations, for example, are looking at mission-related investments, at
program-related investments, sometimes into an emerging social enterprise form like
an L3C or Benefit Corp. But they see their role as much more strategic, where their
investment can be leveraged to attract private sector capital.” – Mark Lane
? Will trends in impact measurement push to nonprofits, even for donations/grants
? Can nonprofits target impact investors as potential sources of funds to
compliment donors/grants
4. Nonprofit Challenges
