Robert Kratzer Everett, CRPC^{^®}, PPC™, AIF^{^®}

Investment

Impact Investing or Philanthropy

The title of the piece, Impact Investing or Philanthropy, rests atop the following: Engaging in impact investing or a philanthropic venture both reflect a commitment to values. Each may shape the future – but how do they differ?

The title of the piece, Impact Investing or Philanthropy, rests atop the following: Engaging in impact investing or a philanthropic venture both reflect a commitment to values. Each may shape the future – but how do they differ?

An image of two smiling people handing out aid packages at a shelter rests atop the following paragraph:: Impact Investing focuses on an investment strategy favoring companies that align with investor values. Next, is an image of 4 people in business casual attire greeting one another in an office setting. Below are the words: Philanthropy directly supports non-profit organizations and other initiatives through donations. Following this are two statistics. The first states that eighty-eight percent of public companies have initiatives in place. The second statistic states that the total U.S. non-profit annual revenue is $2.62 trillion.

An image of two smiling people handing out aid packages at a shelter rests atop the following paragraph: Impact Investing focuses on an investment strategy favoring companies that align with investor values. Below the paragraph is a statistic stating, Eighty-eight percent of public companies have initiatives in place.

Profit and purpose. Choosing between your portfolio and funding a cause can be difficult.

An image of 4 people in business casual attire greeting one another in an office setting. Below are the words: Philanthropy directly supports non-profit organizations and other initiatives through donations. Below the paragraph is a statistic stating that the total U.S. non-profit annual revenue is $2.62 trillion.

An image of a man and a woman walking through an indoor nursery is shown. She carries a large box of seedlings while they smile at one another. Next to this is the following paragraph: Impact investing seeks to invest in companies that align with specific environmental, social, political, ethical, or religious values. By supporting these companies, investors are looking to align their values with their portfolio strategies. Impact investing has been shown to increase profits by 9.1%, on average, over the last three years.

Profit and purpose. Choosing between your portfolio and funding a cause can be difficult.

Two paragraphs sit next to an image of a man with steepled fingers and crossed legs staring into the distance. The paragraphs read thusly: Philanthropy directly supports a cause that aligns with the values you and your family cherish. When making a gift, some individuals may also receive tax benefits, which can enhance the appeal. 85% of affluent households donate to some sort of charity. Why? Top of the list are personal satisfaction and having an emotional connection to a special cause or organization.

An image of a man and a woman walking through an indoor nursery is shown. She carries a large box of seedlings while they smile at one another. Next to this is the following paragraph: Impact investing seeks to invest in companies that align with specific environmental, social, political, ethical, or religious values. By supporting these companies, investors are looking to align their values with their portfolio strategies. Impact investing has been shown to increase profits by 9.1%, on average, over the last three years.

Gauging Impact by Generation. Performance data is an essential touchpoint for investors looking to evaluate their investments, even if that return isn't financial. Methods to gauge the success of both impact investments and philanthropy vary widely depending on the goal. Perhaps more telling is how different generations view these two similar paths to the same goal.

Two paragraphs sit next to an image of a man with steepled fingers and crossed legs staring into the distance. The paragraphs read thusly: Philanthropy directly supports a cause that aligns with the values you and your family cherish. When making a gift, some individuals may also receive tax benefits, which can enhance the appeal. 85% of affluent households donate to some sort of charity. Why? Top of the list are personal satisfaction and having an emotional connection to a special cause or organization.

A first-person point of view looks down at a scorecard, which has the following categories graded with an A plus: ethics, Profit, and Impact. To the right of this is the following statistic, some 61% of millennials said they participated in impact investing, compared to only one-third of all investors.

Gauging Impact by Generation. Performance data is an essential touchpoint for investors looking to evaluate their investments, even if that return isn't financial. Methods to gauge the success of both impact investments and philanthropy vary widely depending on the goal. Perhaps more telling is how different generations view these two similar paths to the same goal.

A paragraph sits next to an image of two people giving their time at a soup kitchen or shelter. The paragraph says, 72% of baby boomers – those born between the Second World War and mid 1960s – said they prefer charitable giving over impact investing.

A first-person point of view looks down at a scorecard, which has the following categories graded with an A plus: ethics, Profit, and Impact. To the right of this is the following statistic, some 61% of millennials said they participated in impact investing, compared to only one-third of all investors.

The piece ends with the following words between two horizontal bars: As you can see, while Impact Investing and Philanthropy aim for meaningful change, they do so in different ways and attract different investors. Contact your financial professional for help deciding which method may be suitable for you.

A paragraph sits next to an image of two people giving their time at a soup kitchen or shelter. The paragraph says, 72% of baby boomers – those born between the Second World War and mid 1960s – said they prefer charitable giving over impact investing.

Sources: 1. Bankrate.com, 2023, 2. Zippia.com, March 13, 2023, 3. IRS.gov, June 5, 2023, 4. Visionofhumanity.org, 2023, 5. Scholarworks.iupui.edu, 2021, 6. Impact-investor.com, 2023, 7. Impact-investor.com, 2023

The piece ends with the following words between two horizontal bars: As you can see, while Impact Investing and Philanthropy aim for meaningful change, they do so in different ways and attract different investors. Contact your financial professional for help deciding which method may be suitable for you.

Sources: 1. Bankrate.com, 2023, 2. Zippia.com, March 13, 2023, 3. IRS.gov, June 5, 2023, 4. Visionofhumanity.org, 2023, 5. Scholarworks.iupui.edu, 2021, 6. Impact-investor.com, 2023, 7. Impact-investor.com, 2023

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