In our society, forward-thinking organizations are working to evolve their businesses for the benefit of all stakeholder communities they serve. Current economic, social, and environmental realities compel fiduciaries to assess how their investment practices relate to the entity’s charitable mission and public benefit purposes. In this briefing paper, Ksapa explores elements of change in the use of endowment assets for social capital. It provides the history of responsible investing & impact investing strategies and the implementation vehicles from which to position a portion, or the entirety of an endowment’s assets for the benefit of those it serves. It also looks at legal and tax considerations one must employ for successful outcomes.
A foundation has the ability to re-examine its fiduciary principles and expand upon those principles in order to maximize stakeholder outcomes and leverage positive impact in their communities. To mitigate risk and have successful outcomes, an organization and its fiduciaries must understand the context and perspective from which to deploy all forms of sustainable & impact capital. Fiduciaries must understand the legal and taxable considerations of impact investment vehicles before embarking on an impact strategy.
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