By Ruth Masterson and Lauren Kotkin, ASF 

In the first of a 3-part series on impact investing, we use data from our recent member survey to learn more about the ASF member foundations that make impact investments, and the returns they achieve.

Impact investing isn’t inherently riskier than other types of investments. This was clear in the results from our 2013 survey of ASF member foundations, the Foundation Operations and Management Survey. Impact investments can be part of a successful investment portfolio—and the evidence shows that they are for ASF members.

What is impact investing? It’s the intentional deployment of funds by investors who seek both social and financial returns. It grows out of the practice of socially responsible investing, which includes positive and negative screening and shareholder advocacy; and mission investing, or investments by mission-based organizations. Learn more about impact investing

Our survey results tell us that 11% of ASF member foundations engage in impact investing. Curious to learn more about these members, here’s what we found:

• There were no significant differences in the profile of member foundations that do impact investing—not in foundation type, numbers of board members or staff, foundation age, length of ASF membership, or other demographics. In other words, members of all types are availing themselves of the impact investing strategy. 
• The ASF members that make impact investments didn’t earn significantly more or less than their counterparts. What’s different is that their investments are aligned with their grantmaking and their charitable missions. 

Are you interested in learning more about impact investing? According to Peter Berliner with Mission Investors Exchange (@MissionInvest), learn, design, and activate are three steps to creating an investment program aligned with your mission. That is, learn about impact investing and your current portfolio, design your path forward, and activate your plan by making investments.

In part 2 of this 3-part series, we’ll look at how ASF members accomplish their impact investing.

The complete 2013 Foundation Operations and Management Report, with data on ASF members’ administration, governance, grantmaking, and investments, is now available. Unlimited downloads and one print copy are included in ASF membership; members can purchase more copies at a discounted rate. A limited supply of print copies are available for purchase by non-members. 

Related resources

• ASF’s resources on investing
• ASF’s resources on impact investing (members only – join today!)
• ASF’s Foundation Operations and Management Report
• Mission Investors Exchange, where philanthropic innovators exchange ideas and experiences to improve the impact of their capital
• The Global Impact Investing Network, a nonprofit dedicated to increasing the scale and effectiveness of impact investing 

ASF Senior Program Manager Ruth Masterson works closely with members to create written materials and training curricula, and answers member questions on foundation administration, governance, boards, and tax and legal topics. She is also is the project manager for ASF’s Practical Board Self-Assessment. Prior to joining ASF, Ruth served nonprofits in her work at Adler & Colvin, the Council on Foundations, and the International Center for Not-for-Profit Law. She earned her B.A. at the Monterey Institute of International Studies and M.P.P. from Johns Hopkins University. 

ASF Senior Program Director Lauren Kotkin plans a range of educational programs for the ASF community, including conferences, webinars, and conference calls. She also dedicates a portion of her time to managing ASF’s resources on investments. Previously, she worked at the Council on Foundations in the Family Foundation Services department. Lauren holds an undergraduate degree from Duke University and an M.Ed. from Lesley University, with a focus on using arts in education.