Nonprofits Are Seeking Profits

Friday, August 19, 2016

The International Non-Governmental Impact Investing Network has released a report showing how not-for-profit organizations are actually chasing profits by embracing the concept and process of impact investing.

More than $545 million has been invested by NGOs into businesses run by social entrepreneurs, according to the report. Almost 60 percent of international NGOs participate in impact investing, the report says, with the remainder exploring ways to incorporate programs and strategies into their missions.

Impact investing is a fast-growing sector of financial services that aims to produce financial returns for investors while at the same time producing socially positive results akin to charitable giving.

The big hope for NGOs, the report says, is that the social businesses to which they have invested will turn tidy profits, propping up their balance sheets, while facilitating their social missions.

“Over the last several years, the INGO sector has seen a number of developments in impact investing and social enterprise creation that are exciting in their range and potential to scale and sustain long-term mission results,” the report says.

Source: Fa-Mag (link opens in a new window)

Impact Assessment, Investing
impact investing