Viewpoint: Funds Are Flowing From Philanthropy to Investments; Is This A Good Thing?

Thursday, March 28, 2019

By Oliver Williams

On the face of it, its a win-win. An investor can put their money into organizations that do good in the world and make a healthy profit in the process.

But what if, as research shows, this type of investing comes at the cost of charity? Funds earmarked for schools, hospitals or other popular philanthropist projects are being diverted into investment funds, which align themselves with certain sustainability goals. But who’s winning from this windfall?

On Tuesday, a survey from Standard Chartered found up to 84 percent of HNWIs (investors with over $1 million) could take funds they reserved for philanthropy and put it into sustainable investments.

The British bank estimates as much as $870 billion around the world could be reallocated from charities to these investment funds.

Photo courtesy of Sudipto Sarkar.

Source: Forbes (link opens in a new window)

impact investing, philanthropy