Late last year, MacKenzie Scott, the philanthropist, author and former wife of Jeff Bezos, wrote about her latest philanthropic giving initiatives – namely the financial gifts she had bestowed in 2024 through her organization Yield Giving.
Scott had bequeathed over $2 million to 199 organizations, most of which were non-profits that “support the economic security and opportunity of people who are struggling” by improving access to affordable housing, jobs, child development, post-secondary education, health care, and business development.
Aside from the sheer volume of the generosity, Scott’s essay revealed her strategy for ensuring that she’s able to maximize the impact of her financial fortune. “When I make gifts, rather than withdrawing funds from a bank account, or from a stock portfolio that increases the wealth and influence of leaders who already have it, I’d like to withdraw them from a portfolio of investments in mission-aligned ventures, with leaders from the populations they are serving, or from generally undercapitalized groups like women and people of color,” Scott writes.
“In this way, the money can help address these issues twice, first by advancing economic mobility and unlocking the innovation and social benefit that comes from incorporating diverse needs and perspectives in the world being constructed around us, and next in the hands of experienced non-profit teams creating value through their transformative models of care and change.”
As it turns out, Scott’s approach to blending philanthropic giving with impact investing is not unique. Addressing and advancing social issues is at the core of most philanthropists’ goals. And doing it twice, by investing the funds for impact before they’re bestowed, has been happening around the world – and here in Canada – for decades.
Female philanthropists who also address social issues through their investments.
There have been many myths about impact investing, and one of them is that it’s a lot like philanthropic giving – requiring the investor to forgo returns in order to help fund positive social and environmental outcomes. The reality is that impact investing and philanthropy, while different, often go hand-in-hand to amplify returns – both financial and social – thanks to creative investors and charitable donors who have found ways to increase their impact on issues they care about.
Another pioneer in this practice is Jean Case, CEO of the Case Foundation. Before she became a philanthropist and impact investor, Case worked as an executive at AOL, which fuelled her desire to leverage the power of technology to better the world. When she left the corporate sector, Case combined impact investing with philanthropy, entrepreneurship and innovation via her self-professed “fearless” approach to amplifying the impact of her investments. “Entrepreneurship isn’t just about making money; it’s about making a difference,” Case has famously said. And that’s what she’s done.
Through the Case Foundation, Case has invested in environmental and sustainable development, worked to level the playing field in entrepreneurship by focusing on underrepresented founders in overlooked regions, and promoted open data initiatives to improve transparency in government and social programs. And as a philanthropist, she has pledged, alongside her husband, to give the majority of their wealth to charitable causes. Together, they’ve also worked to educate investors about impact investing principles by showcasing successful examples of companies that deliver both financial returns and positive societal outcomes.
Melinda French Gates is another prominent philanthropist who has adopted a blended finance approach to making an impact. Through her investment company, Pivotal Ventures, French Gates invests in women-led funds and early-stage companies working specifically on gender issues and social progress. The investments bolster her extensive philanthropic grants, including a recent $1 billion commitment to advancing women’s power globally.
In Canada, we also have our fair share of female philanthropists/impact investors, including Joanna Kerr, President and CEO, MakeWay (formerly Tides Canada), which has championed investments that support environmental sustainability, community-led initiatives and empowering Indigenous communities, as well as cherished Genus clients such as Carol Newell and Annabelle White.
You may be able to increase the social and financial alignment of your portfolio by considering a blended finance approach
With philanthropic giving on the rise, thanks primarily to women, more funds than ever are being allocated toward making an impact on urgent social issues. Adding impact investing to the equation allows you to amplify the effects of your funds before they’re granted or donated. Both individuals and institutions are leveraging blended finance techniques to increase the impact of their investments – whatever their end goals.
So if you’re looking to boost your impact – whether through investing, philanthropy or other ventures for social good – the first step is to talk to your advisor – or one of ours.
Interested in amplifying the impact of your philanthropic giving? Get started today with our values-based investment services.
*This testimonial may not be representative of the experience of all clients and is not indicative of future performance.
The information in this article is for informational purposes only and does not constitute investment, legal, or tax advice. Past performance is not indicative of future results. Individual results may vary. Please consult with a qualified advisor before making investment decisions.
References:
Yield giving. (n.d.). Yield Giving. https://yieldgiving.com/essays/investing/
Shibu, S. (2024, December 19). ‘I’m Inspired By All the Ways People Invest’: MacKenzie Scott Has Donated Over $2 Billion This Year. Here’s Where the Money Went—and Why. Entrepreneur. https://www.entrepreneur.com/business-news/mackenzie-scott-has-donated-over-2-billion-this-year-alone/484554
Yield giving. (n.d.). Yield Giving. https://yieldgiving.com/essays/investing/
Steve and Jean Case – the giving Pledge. (n.d.). Giving Pledge. https://givingpledge.org/pledger?pledgerId=178
Greene, S. & Case Foundation. (n.d.). [A SHORT GUIDE TO IMPACT INVESTING]. In Case Foundation. https://casefoundation.org/wp-content/uploads/2014/09/Short-Guide-Oct2015-Digital-FINAL.pdf
Melinda French Gates announces $1B commitment to advance Women’s Power Globally | Pivotal Ventures. (n.d.). Pivotal Ventures. https://www.pivotalventures.org/articles/melinda-french-gates-announces-1billlion-commitment-to-advance-women-globally
