Impact Investing: A 21st Century Tool to Attract and Retain Donors

· A familiar private foundation tool is being used by the Greater Cincinnati Foundation as a way to engage donor advisors to make a positive difference in the community. · While due diligence and risk management of the financial return for these investments is crucial, the social return to be achieved is the primary consideration. · Donors can achieve a modest financial return, which is recycled into their donor-advised fund, by investing locally in projects that make a significant difference. · Initial donor interest in participating in impact investing has been strong and provided valuable insight into program design. · The cost of an impact-investment program can be viewed as an investment in the community – much like a grant. If the individual investments are made carefully, the net effect should be a greater impact than grants alone can achieve.