NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

As philanthropists and impact investors pour money into social and environmentally focused businesses and projects, a nagging question often hovers over their efforts: Is the capital actually ending up where it is intended, and is it delivering impact in a measurable, tangible manner?

The Global Impact Investing Network (GIIN), an industry group, says that investors committed $22.1 billion to projects that deliver both financial and social and/or environmental purpose in 2016. Philanthropies increasingly believe that putting money into social businesses rather than issuing grants to nonprofits brings bigger, more sustainable, returns. And a wide array of mainstream funders, including pension and sovereign wealth funds, have recently entered the impact investing field. One prominent example from 2017: the $2 billion Rise Fund backed by TPG, a private equity firm, and a host of celebrity investors including Richard Branson and Bono.