I discovered in, of all places, Hawaii a truly great article on how impact investing has become the new philanthropy.
I say “of all places” because I do not live in Hawaii and the publication, Hawaii Business, wasn’t familiar. In any event, the extensive feature story relays how investors can make an environmental and social impact through investments that offer a financial return.
Most pointedly, Pierre and Pam Omidyar (Hawaii residents) were singled out for their impact investing efforts.
“The most prominent of the impact-investment organizations in Hawaii is the Ulupono Initiative. Founded in 2009 by eBay billionaire Pierre Omidyar and his wife, Pam, Ulupono is a fascinating hybrid – half private-equity firm, half philanthropic foundation. This structure, typical for impact-investment organizations, allows Ulupono to dabble in both the for-profit and nonprofit realms. As a for-profit corporation, Ulupono invests in startups such as Kapalua Farms, Volta Industries and Honolulu Seawater Air Conditioning -- companies whose basic operations will address at least one of the three areas on which Ulupono focuses: increasing local food production, expanding the state’s renewable energy and reducing the waste entering Hawaii’s landfills.
At the same time, through the Ulupono Fund, a $50-million donor-advised fund administered by the Hawaii Community Foundation, Ulupono issues grants and loans to innovative organizations such as the Kohala Center, the Hawaii School Garden Network and MAO Organic Farms, nonprofits with innovative solutions to some of the same issues addressed by their for-profit cousins. This interest in both for-profit companies that do good and nonprofit organizations that operate with an eye on the bottom line represents the spectrum of impact investing,” Hawaii Business wrote.
Check out the full article here.
A neat example of another island impact company is called ReUse Hawaii. The nonprofit company deconstructs old buildings, instead of demolishing them, according to Hawaii Business, and sells the used building materials. Do-it-yourselfers “in search of cheap lumber” then buy the materials. “It’s easy to envision a time when ReUse Hawaii will be completely self-funding,” Hawaii Business predicts.
Based on its model, I agree, and hope it catches on in other places. Furniture and household items are one of the largest categories of items found at waste disposal sites.
Reconstruction is an apt metaphor for both the investing and philanthropy industries -- with impact building in their places.