Impact investing: A 21st century tool to attract and retain donors

Abstract

The Greater Cincinnati Foundation expanded its thinking about what are now called impact investments, going beyond traditional housing and community-development investments to those that reduce a community's carbon footprint and create jobs. Donor advisors partnered in these investments, recycling donor-advised fund's charitable capital in a way that provided a social return in the community as well as a small financial return. The authors describe the use of this familiar private foundation tool and the community foundation's rewarding and exciting experience. They caution that it is a journey to be taken with full understanding of the costs and benefits.