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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