GIIN in the news Press releases

  • Microfinance and Impact Investment

    via Business Dailyby Bbc

    March 07, 2011

    Summary

    The BBC's Lesley Curwen speaks with Harold Rosen, founder of the Grassroots Business Fund, which lends to small and growing businesses in the developing world as a means to create positive social and environmental impact while returning a profit to investors. Building upon the models pioneered in microfinance, Harold Rosen discusses his model of impact investing in this interview.

    Read original article

  • First Social Stock Exchange in Asia to be Set Up by Early Next Year

    via Malaysia Star

    March 07, 2011

    Summary

    The Asian impact investing exchange is scheduled to launch in early 2012, according to this article in the Malaysian Star.

    From original article:

    "Asia's first social stock exchange - Impact Investment Exchange Asia (IIX), which is a social enterprise (SE), is expected to be set up and operational by early next year.

    "While details of the IIX have yet to be ironed out, the organization behind IIX, Impact Partners will be launching an online portal by the end of the month to bring together investors with socially impactful investments.

    "According to IIX managing director Robert Kraybill, impact investing may be new in Asia but is was fast gaining traction in the United States and Europe.

    "IIX directors believe there is much potential for impact investments in Asia as social issues such as poverty, deprivation and environment become more relevant."

    Read original article

  • Lessons for the New Philanthropy from the Experiences of the Past

    via LiveMintby Ganesan Balachander

    March 05, 2011

    Summary

    Banker and Ecologist Ganesan Balachander discusses the role the philanthropy has played in the development of Indian economic markets, acknowledging the rise of impact investing in recent years.

    From original article:

    "Finally, with the growing role of the market and a paradigm shift in the offing from a welfarist social policy to a more market-based one, there is also scope for socially responsible investing. This has been termed as impact investing, described as the emerging hybrid of philanthropy and private equity. If India can get its act together, there is no reason why we cannot have a shining India in our lifetime."

    Read original article

  • Search for New Assets Finds a Positive Impact

    via Financial Timesby Norma Cohen

    March 03, 2011

    Summary

    Interest in impact investing is growing among high-net-worth individuals, particularly those who generated assets through entrepreneurship, according to this article in the Financial times.

    From original article:

    "In a report last year, JP Morgan concluded that businesses aiming to deliver just five socially desirable goals - housing, rural water delivery, maternal health, primary education and financial services - for people earning under $3,000 annually, has the potential to attract anywhere from $400m to $1,000bn over the next 10 years. More than that, it offers potential profits of $183bn to $667bn.

    "Andrew Haigh, managing partner at Coutts' Entrepreneurs Client Group, said that a number of its clients wanted to invest in precisely such channels. Many, he said, were entrepreneurs who may have recently become wealthy through the sale of a business and found themselves looking for places to invest not just cash but ideas and energy, as well. 'Early-stage investment is already on their radar screens,' Haigh says. 'Often, there is also a desire to give something back.'"

    Read original article

  • Where Will All The People Live?

    via Financial Advisor Greenby Ellie Winninghoff

    February 28, 2011

    Summary

    Enterprise Community Loan Fund has invested capital into affordable housing for low-income Americans for decades, and more recently, the fund has worked with green builders on their projects, according to this article in Financial Advisor Green. The product is available now to both individual and institutional investors.

    From original article:

    "Are you looking to invest with a social enterprise that has an extraordinary track record for tackling complex problems with creativity, not gimmicks?

    "Enterprise Community Loan Fund (assets: $176 million), one of the largest loan funds in the country, has started offering 'community impact notes' to individuals and institutional investors that help finance green and affordable housing, as well as the revitalization of communities, which its founder once visualized as 'gardens that grow people and civilizations.'"

    Read original article

  • The New Candy

    via Financial Advisor Greenby Ellie Winninghoff

    February 28, 2011

    Summary

    Financial Advisor, a trade publication for wealth advisors, details the growing interest in impact investing and the products available in the market now.

    From original article:

    "Imagine investing in - not donating to - nonprofits that make small business loans in Appalachia, develop affordable housing in New Orleans, support fair trade initiatives for chocolate and coffee growers, or maybe extend credit to micro-entrepreneurs or small businesses that sell clean energy or deliver access to water in the developing world.

    "Or perhaps your clients prefer to invest in a for-profit loan fund that supports organic farms, or a private equity fund that preserves ranchland or develops sustainable forests. Or a venture capital fund focused on climate change solutions.

    "Welcome to the world of 'impact investing,' a way to invest to solve the world's social and environmental problems while earning a financial return - as little as a return of capital to as much as well-above-market rate.

    "These investments, which range from CDs in community banks to private placements limited to accredited investors, can also include various tranches in massive development projects involving partnerships between governments, foundations, banks and pension funds."

    Read original article

  • Transparency Needed

    via Financial Advisor Greenby Thomas Kostigan

    February 27, 2011

    Summary

    This blog post in Financial Advisor Green makes the case for transparency and consistency in social and environmental performance reporting, noting the work of the GIIN to create the Impact Reporting and Investment Standards (IRIS).

    From original article:

    "Impact investing needs indexes, benchmarks and uniform reporting in order for investors to make intelligent investment decisions. Otherwise, it's investing in a vacuum - and that won't do the world as much good over the long term.

    "It's happening.

    "The Global impact Investing Network has developed Impact Reporting and Investment Standards (IRIS). This is a common framework for measuring social and environmental impact of investments."

    Read original article

  • Government and Nonprofits Experiment with New Approach on Financing

    via The Chronicle of Philanthropyby Martha Ann Overland

    February 19, 2011

    Summary

    As governments in the United States consider social impact bonds, the idea gets coverage in this article, which appeared in the Chronicle of Philanthropy.

    From original article:

    "Now a new financing effort getting attention from foundations and governments - most notably the Obama administration, which last week offered up to $100-million toward the approach - may help nonprofits like Earthen Vessels attract the money they need to expand, with the goal of saving money for society in the end.

    "Backers of the new financial tool, known as social-impact bonds, want to tap the discipline of the business world by enlisting investors to put up the money to run social programs that the government normally pays for.

    "The incentive for investors: If they back programs that get results, the government will not only repay the money but also provide a bonus.

    "The concept is popular because it reduces fund-raising headaches for nonprofits and because it allows the government to avoid paying for programs that don't make a difference.

    "If a nonprofit fails to reduce homelessness or doesn't increase graduation rates, for example, then the government pays nothing."

    Read original article

  • Entrepreneurs Are Transforming The Developing World

    via The Huffington Postby Randall Kempner, Aspen Network For Development Entrepreneurs

    February 17, 2011

    Summary

    Aspen Network for Development Entrepreneur's Randall Kempner makes the case that investing in small and growing businesses provides valuable economic and social benefits to developing economies.

    From original article:

    "For the impact investing community, and even the broader investment community - SGBs provide a valuable channel and opportunity. More and more investors are realizing that they can reap financial rewards as well as social and environmental impacts by investing in these types of businesses. Our upcoming Impact Report will share research that demonstrates that in 2010 alone, 31 new funds targeting SGBs were launched."

    Read original article

  • The Most Exciting 0.003% of Obama's Budget

    via Fast Companyby Alex Goldmark

    February 15, 2011

    Summary

    Reporter Alex Goldmark looks into the motivations behind social impact bonds, which are allocated $100 million in President Obama's proposed budget.

    From original article:

    "Buried deep within President Obama's $3.7 trillion budget is a tiny little item that might just change public finance forever... if it works.

    "Well it's tiny by comparison anyway. President Obama is asking for up to $100 million — less than 0.003 percent of his overall proposed budget — to pilot a brand new way to pay for public services called the Social Impact Bond. The plan uses private, profit-motivated investment money to fund public services up-front. The government only pays if the services deliver as promised, and only out of government cost savings. No taxpayer money wasted on failed programs in this plan...

    "...'There are a whole range of social issues, where if we get better at preventing them, then prevention is cheaper than cure,' Eccles says. 'That's something that is hard for government to commit to,' especially in tight fiscal times like the current ones, but private investors are used to paying up front and waiting for results."

    Read original article

  • Rockefeller Foundation Sees Social-Change Dividend

    via Wall Street Journalby Shelly Banjo

    February 14, 2011

    Summary

    GIIN Board Chairman Antony Bugg-Levine's impact investing program at the Rockefeller Foundation is the subject of this article, which details the work that's being done to bring social impact bonds to the United States.

    From original article:

    "Originating in the U.K., social-impact bonds encourage private investors and philanthropic foundations to fund privately managed social programs in areas such as health care and prisoner recidivism. If the programs succeed in reaching previously set targets - and social outcomes improve - investors receive so-called success payments from the government. If the programs don't work, the government pays nothing. In these scenarios, investors take on all the risk and the government pays only for programs that work...

    "...'There simply isn't enough money in philanthropy and government alone to solve the problems that need to be solved,' Mr. Bugg-Levine says. 'There's $80 trillion in for-profit capital markets and we believe there's huge potential in unlocking some of that money and deploying it to solve social problems.'"

    Read original article

  • India

    via LiveMintby Pierre Omidyar, Founder Of Omidyar Network

    February 09, 2011

    Summary

    Pierre Omidyar, whose Omidyar Network is a founding member of the GIIN Investors' Council, writes in this guest column about the Omidyar Network's approach to financing social and environmental businesses that can accelerate India's economic development.

    From original article:

    "We also hope to have a catalytic effect with our investments. This implies a focus on investments or grants at organizational inflection points, when financial resources and professional expertise will have the most impact in helping an enterprise grow. Typically, this means companies with a proven model and demonstration of social impact, supported by a strong management team. Success is judged by how many people's lives each organization is impacting and to what extent. This evaluation system is imperfect, but we believe it's a good indicator of the type of impact we want to see in the world.

    "Our hope is that this type of impact investing can play an important role in India's development by supporting innovative organizations that foster economic, political and social advancement for all Indians."

    Read original article