• Description

Philanthropic organisations have a great role to play when it comes to achieving and generating positive social change. Foundations can adopt diverse strategies and benefit from an extensive toolbox of non-financial and financial resources from their programme activities and the investments of their endowments.

There is a growing realisation that involvement in impact investing may offer a chance to build on their organisational, social and environmental impact. On one hand, philanthropic organisations are seeing opportunities to expand their toolbox by incorporating impact investing approaches into their grantmaking capacity. On the other hand, a wider societal shift in expectations for investments of their endowments to create more than financial returns has led to a growing interest in this area amongst philanthropic organisations when investing their endowments. Several foundations have also taken a new strategic direction to take a holistic approach towards their programme and endowment investing side.

This paper is jointly crafted by the key European philanthropy networks working in the field of philanthropic organisations and impact investing: Impact Europe: the European investing for impact network, and Philea - Philanthropy Europe Association. It builds on both organisations' resources and joint actions, in particular a multi-year joint working group on philanthropic organisations' use of the full spectrum of capital, which provided valuable insights and case studies.