What is Mission-Aligned Investing?
Most foundations invest in businesses to fund their missions, but do those foundations actually believe in those businesses? When you practice mission-aligned investing (MAI), you strictly invest in organizations that champion your values. Your investments generate positive social and environmental impact—not just financial gain.
Expand Your Knowledge
A decade ago, I met a fellow foundation director, Laura Kind McKenna, who said to me: “Because the UnTours Foundation...
June 7, 2023 by Rich Hoffmann of 215 Timelapse, the creator of our new MAI short film, Dollars That Make...
The Untours Foundation’s longtime director Elizabeth Killough recently sat down with Technical.ly Assistant Editor Stephen Babcock to talk about impact...
Our director, Elizabeth, was invited to write a piece about impact investing and risk, a specialty of the Untours Foundation...
Huff Post blog by Untours Foundation Director Elizabeth Killough There’s a lot of judgment these days about your endowment. You...
Align Your Investing With Your Mission
You’ve been told to grow, grow, grow your endowment. However, if you’re investing in businesses that actively oppose your mission, it’s time to rethink your investments. Make your dollars make sense.
[1] Define your mission and values.
[2] Examine what your investments fund.
[3] Identify which investments don’t align.
[4] Find new investments that align with your mission.
[5] Let your money grow and do great things!
Elizabeth with Ruth Shaber, MD, and Patience Marime-Ball, esq., co-authors of The XX Edge: Unlocking Higher Returns and Lower Risk.
Meet Fellow Paradigm Shifters
It’s time to shift the paradigm. Someone has to pave the way! Explore stories of leaders using endowments, CDFIs, and other piles of money to create real change. These stories are taken from our Paradigm Shifters newsletter.
UnTours Foundation Impact
Dive Deeper into Mission-Aligned Investing
Need more resources? Explore tools, downloads, articles, and podcasts related to mission-aligned investing.
MAI Tool Kit UnTours Foundation
990 & 990-PF Toolkit UnTours Foundation
Invest Your Values Tool As You Sow
Charity Navigator Tool Charity Navigator
Getting Past Inertia: Ten Simple, Valiant Steps To Align Your Foundation’s Endowment With Your Mission – Or Not HuffPost, written by Elizabeth Killough
Bringing Charitable Fiduciaries Up to Speed WealthManagement.com, written by Elizabeth Killough and Trisha W. Hall
Delaware Expands Investment Options for Trust Fiduciaries WealthManagement.com, written by Elizabeth Killough and Trisha W. Hall
If Foundations Want to Encourage Transparency, They Should Look in the Mirror The Chronicle of Philanthropy, written by Clara Miller
How can foundations and family offices invest for impact? Off the Sidelines podcast, guest Elizabeth Killough
FAQs
Mission-aligned investing uses your investments to truly fulfill your mission.
The IRS requires foundations to disperse 5% of their assets annually. This money provides for grants, salaries, and overhead. Foundations invest the remaining 95% in stock, bonds, and private markets. These businesses often work against the foundations’ missions.
Mission-aligned investing puts your mission in the role of stakeholder. Does the investment support or serve the mission? If not, it’s not aligned.
Transforming your investments may seem daunting. You’ve got this! You may need to work with a professional financial advisor, asset manager, or consultant for guidance.
- Closely examine what your investments fund. You can use the Invest Your Values Tool from As You Sow to start!
- Compare those actions to your values.
- Identify which investments don’t align.
- Find new investments that match your mission.
- Grow your endowment while doing great things!
The UnTours Foundation is one example! Our endowment is a revolving loan fund that we use to invest in entrepreneurs who solve social and economic problems while taking the climate crisis seriously. Explore our investment portfolio here.
Another example could be an environmental foundation that invests directly in an organic farm.
A foundation’s investments are reported on its 990 or 990-PF tax forms.
100% committed—and proud to say so! Our foundation has been 100% mission-aligned since we started over 30 years ago.
Hal, our founder, couldn’t make investments that fueled big businesses to maintain the status quo. All profits from UnTours go to the UnTours Foundation, and our endowment is a revolving loan fund that we use to invest in like-minded companies.
Yes! We are here as a resource for you. We are happy to share our expertise with others looking to practice mission-aligned investing. In fact, we’re elated when organizations reach out! Together, we will shift the paradigm.
Contact Elizabeth Killough at [email protected] with questions or for service details. Our team can answer simple questions, guide you on your journey, or present to your decision-makers about the benefits of mission-aligned investing.
