Although I’ve referred to there being approximately 1 OOM more capital invested than granted in any one year, there’s some nuance – of the granted funds, all of them are in fact being allocated in that year (by definition); whereas of the invested funds, some of the assets may well have allocated to impact funds some years ago.
This could be 1 OOM effect, if you invest for 10 years, so that’s pretty important.
Although 90% (or whatever) of your assets could be invested in impact investing funds, you probably won’t allocate all of your assets to impact investments. For example, you will probably want to hold some of your capital in listed equities, and you might consider it too hard to find effective impact investments in that asset class.
If you do a significant fraction, it’s pretty easy to reduce your overall return significantly (if you are trying to maximize returns), which really cuts into your charitable impact. So overall, it doesn’t look very promising to me.
This could be 1 OOM effect, if you invest for 10 years, so that’s pretty important.
If you do a significant fraction, it’s pretty easy to reduce your overall return significantly (if you are trying to maximize returns), which really cuts into your charitable impact. So overall, it doesn’t look very promising to me.