Impact donations and investing is changing the world
Impact donations and investing is changing the world, offering socially conscious investors opportunities to drive social and environmental change without sacrificing financial returns.
- Impact investing directs capital to enterprises that generate social or environmental benefits while also yielding returns for investors and benefactors.
- A stigma exists, suggesting that these investments cannot be scaled effectively to generate attractive returns. It's believed that they carry higher overall risk and are less liquid, making them harder to exit.
- Impact investing is projected to grow to over $700 billion by 2025, although this would still constitute a small portion compared to the approximately $4.9 trillion that private-equity (PE) firms are expected to manage globally in the same year.
- Contrary to these perceptions, there is a model that challenges this notion.
Impact Donations and Investment
How do we close the gap between health care companies that need investors and socially minded individuals looking to make their money work for them by also doing good? This is where conscious based donors and investors can make a huge difference. In fact, millennials are already driving the future of impact investing. Nearly 80 percent of socially conscious individuals have already made an impact investment, and more than one-third say investing in health care would be their number one priority if they were to make an impact investment.
Impact investing can help business-savvy, socially conscious individuals and organizations fuel the future of precision medicine. The social return on these investments is simple and invaluable — personalized cancer treatment that will extend and save lives. To get there, powerful financial institutions need to create impact investment services that make investing in precision medicine accessible and profitable for all of their customers.
