The IDP Foundation is committed to finding new and innovative approaches to break the cycle of poverty, and we believe that charitable organizations have an obligation to use all of their resources - not just their grant dollars - towards achieving their missions. We are excited to combine smart philanthropy with mission-aligned impact investing that will significantly amplify our impact.
Impact investments are “investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return”.
Typically, foundations invest their corpus with an eye solely toward risk-adjusted returns, trying to grow the corpus so that there is more money to give away the following year. While that may seem like a reasonable goal, we want to maximize the impact of these assets and dig a little deeper. Is it possible to create as much change with investments as it is with money we give away? Pursuing the answer to this question has led IDP Foundation to become increasingly engaged in impact investing.
With the help of our financial advisors, we are excited to now include impact investing as another way of putting our philanthropic dollars to work to generate even more positive change. We are proud that 92% of our investments are mission-aligned.
We evolved the architecture of our portfolio by investing in high quality investment managers dedicated to impact investing. We believe that our investment decisions can integrate ESG (Environmental, Social and Governance) criteria while not sacrificing financial returns. We have been tracking the portfolio’s performance versus a traditional benchmark since the start of 2014, and it has outpaced its traditional benchmark.
As we developed the public markets exposure to sustainable companies, we decided to carve out a $5 million mandate to direct private equity investments to increase the exposure and fulfill the sustainable goals of our portfolio.
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