Traditionally, NCF’s givers have used grants from their Giving Funds to make a tangible difference for the causes they love. But a growing number of givers have found that they can double their impact by also using their Fund balances to do good – through impact investing.
When you make an impact investment, your Fund’s assets are invested in private companies, venture funds, or nonprofits working toward a triple bottom line, at achieving financial – as well as spiritual and social – impact. Once the investment is made, the entity puts the money to work, and the earnings go back into your Fund. This means that, while furthering the causes you love, you also have the potential to generate financial returns. Then, you can make more impact investments or continue granting with more funds for the charities you care about.
With impact investing at NCF, you have a powerful way to make a spiritual impact with your Fund balance, even before you recommend grants to charities.
Traditional investing versus impact investing
NCF Fund balances have always been invested in our pools or in a separately managed account (SMA), but they’ve been invested with the goal of strictly financial returns. But with impact investing, a portion of your Fund can grow through impact investments while the rest of your balance is being granted to kingdom-related causes.
Impact investing options
NCF has a variety of solutions for achieving impact investing goals and objectives. You may select from one of our curated impact pool options, which range in purpose, type, and potential return, to combine for greater impact with a community of other NCF givers. Or, you may choose to explore other options with our team. If you already have impact investing ideas in mind, we can discuss possible solutions with you and your advisors.
Depending on the circumstances, solutions might include an NCF Supporting Organization, or collaborating with our friends at Impact Foundation. Another possible solution is to ask your financial advisor to vet and recommend an impact investment in a separately managed account (SMA) at NCF. Once you make your choice, your NCF Fund’s investment is then put to work, supporting the impact pool’s cause and growing financial returns for more charitable giving. Whatever your goals, we are here to serve you as you navigate impact investing.