This article is excerpted from http://www.boardwalkcm.com.
B. Scott Sadler, CFA -- President, Boardwalk Capital Management
Charitable organizations are in a unique position among investment entities; being able to enhance the public good though grants that are consistent with their charitable "mission". And while a foundation's
mission is often narrowly defined (arts,
health, environment, education, etc.), the
purpose of
every foundation is arguably the same:
"A
charitable purpose... is for the public benefit."
Charity Commission Website
2011) |
With this broader
definition, how does a foundation's
purpose factor in to its
investment decisions? There are bigger issues at work here than many recognize.
Never have foundations had
more
choices when it comes to investments that provide societal benefit. Even
choosing between two large cap companies in the same industry can
have vastly different environmental and social impacts. So, where does an
"investment" end and a "grant" begin?
Better yet, why must one even choose to
define such a question at all, when both can further the organization's purpose
and mission?
"Harmonizing a
charity's giving and financial
investing best serves the charity's public benefit purpose.
Separating the two poses a false
dichotomy.
As investing and giving become more seamless, value is
added."
Stephen Viederman, former president of the Jessie Smith
Noyes Foundation
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