Just as foundations were instrumental in the development of microfinance, they play an important role in the broader impact investing industry. In this article from the Wall Street Journal, eight philanthropists tell how they would spend $10 billion dollars. Rockefeller Foundation President Judith Rodin and Apax Partners Founder Sir Ronald Cohen both discuss ways to use philanthropic capital to encourage private capital to address global challenges.

From Dr. Judith Rodin's essay

I would use the $10 billion in four areas: First, on equipping groups and governments with talent, technology and training so cycles of growth continue after funding dissipates. Second, on creating public policies that give people access to opportunity and help strengthen resilience in their neighborhoods, villages and cities.

Third, investing in partnerships and networks that connect entities across disciplines and sectors, assuring that successful local innovations are more widely adopted. Fourth, finding new ways of mobilizing market and financial institutions that enable private capital to complement traditional resources.

From Sir Ronald Cohen's essay

$10 billion should be used to seed a powerful and effective social-investment sector across the world. This would boost social entrepreneurship, which is a tremendous new force for tackling social issues.

Organizations whose primary focus is to achieve positive social outcomes are unable to access capital markets in the way normal businesses do. Such organizations need powerfully capitalized social-investment banks that can offer a combination of financial and social returns to a wide range of investors.

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