We were delighted to share with Legacy Arts Magazine how impact investing can support wealth managers, financial planners, and advisors to offer their clients new strategies to craft a legacy with meaning.
Many charitably-minded individuals are turning to impact investing to generate real social and environmental change in their communities, while simultaneously supporting their financial goals.
Impact investing—investing in companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return—is on the rise. It began to gain momentum ten years ago, when people started to examine the disconcerting gap between traditional investing and philanthropy.
“There is a growing interest for people today, especially for Millennials and women, who want to connect with wealth managers and financial planners that are tuned into impact investing,” said Lauren Grattan, Co-Founder and Director of Community Engagement at Mission Driven Finance.
“Financial planners need to be responsive to the rising wealth of younger individuals who are asking for this,” she said. “If they don’t have these products available or the capacity to have meaningful conversations about personal and family values, prospective clients are going to pick another advisor.”
Community-Based Investing
Grattan and CEO David Lynn launched San Diego-based impact investment firm Mission Driven Finance in 2016 specifically to make it easier to invest in your community.
“Most major financial institutions have rolled out impact products, and that’s a great start for investors,” noted Lynn, who has spent two decades in traditional investment management, primarily for a philanthropic family. “But most of those funds are comprised of public equities, not organizations in your own backyard where you most want to leave a lasting legacy.”
“Our base premise at Mission Driven Finance is that it’s a very good, exciting thing to invest in your own community,” said Lynn. “Yet it’s really not all that easy to do. Even if you said, ‘I have a million dollars, and I want to invest—not donate, but invest—in local business in San Diego,’ you would face a lot of barriers on your own.”
Mission Driven Finance actively develops local impact investment opportunities that align investors’ personal values and legacy goals with those of nonprofits, social enterprises, and small businesses. The company serves as an intermediary between these powerful investments and investors, while also functioning as case managers that strengthen borrowers’ businesses.
Read the full article on impactful legacy planning in Legacy Arts digital magazine.
