Double Down With Organizations That Client Cares About: Advisors can also help clients maximize their charitable impact by aligning social enterprise investments with charitable giving. Increasingly, clients are using their donor-advised fund to “double down” by both investing in and granting to a non-profit that they have become engaged in. Investing in a non-profit helps solve the cash flow problems many organizations have when it comes to longer term growth and sustainability. Much of philanthropic granting tends to be directed towards specific programs and not the long-term viability of the organization. At ImpactAssets, a husband and wife discovered impact investing on a philanthropic journey to Africa. After more than 90 impact investments, they have developed a well-honed approach to connecting their business smarts and capital to both mission-driven startups and nonprofits. In a few recent cases, they have invested in the same non-profit they have granted to as they have become involved with the entity through their donor-advised fund. They love the energy of the start-up world and are drawn to people driven by a social purpose. Using philanthropic capital to invest in social entrepreneurs as well grant to non-profits simply made sense to their mission.
Helping clients make charitable dollars go further with strategic giving and impact investing is a benefit to charities, clients and advisors alike. As the holidays hit high gear, there’s still time to make a positive impact this year—and lay the groundwork for a lifetime of client giving in the future.
Amy Bennett is the marketing officer at ImpactAssets.