Charities have always been investing their money. But traditionally trustees' focus has been on maximising the potential financial return rather than considering the positive social impact of their investments. Charity commission guidelines to trustees until recently have emphasised the importance of getting the best financial return so more money can go into grants and services.
But in recent years, things have started to change with growing recognition that good causes often need loans, as well as grant funding. This has been exemplified by the popularity of the microloan organisation Kiva and the emergence of the social impact bond (SIB) product.
Via Daniel Oporto Calderón