What Might Be an Accepted Definition of Impact Investing? How Can Nonprofits Leverage this Opportunity?

I find this market for funds to support nonprofits globally (as well as businesses) a challenge to understand fully and yet I'm gaining insights by following the The Global Impact Investing Network under the leadership of Amit Bouri. 

Their 2024 report is helping me to dig deeper: https://lnkd.in/emJKuyRN

"Impact investing refers to investments made with the intention of generating measurable social or environmental benefits alongside a financial return."

Key elements include:

===> Intentionality: The investment is explicitly designed to address social or environmental challenges.

===> Measurability: The outcomes or impacts (e.g., reduced carbon emissions, improved access to education) are tracked and reported.

===> Financial Return: While the financial return may vary (from below-market to market-rate), it is a core component, distinguishing impact investing from traditional philanthropy or grants.

I have noted that investment managers and certain nonprofit leaders emphasize how impact investing complements traditional funding models by mobilizing private capital for public good, driving systemic change, and fostering innovation in addressing complex societal issues.

Goal for 2025 for me is to more effectively answer the question, "How can nonprofit leaders best steward these dollars for their own causes?"

Photo credit: my iPhone, Dhermi at sunset (Albania)