We Need to Prove Impact Investing Makes a Difference
While human beings are complicated, messy, and unpredictable, metrics and systems that are supposed to measure and manage social and environmental impact are often not dynamic enough to reflect all that human complexity. Yet investors, grant makers, and nonprofit organization need to have some way to assess, manage, and communicate their real impact. This can be especially difficult when the two worlds of investing and philanthropy get mixed together as an impact investment, which is meant to achieve a measurable social or environmental impact alongside a financial return.
Building off of the Money Management Institute’s new report titled Bringing Impact Investing Down to Earth: Insights for Making Sense, Managing Outcomes, and Meeting Client Demand
, I argue in a new op-ed that it’s time for people interested in impact investing to adopt the tools and firms the non-profit sector relies on to evaluate their programs and communicate outcomes—moving beyond just basic numbers to provide actual context.
William Burckart is the Founder and CEO of Burckart Consulting an impact investing analytics and strategy advisory firm. He serves on the Global Advisory Council of Cornerstone Capital Group and is a visiting scholar at the Federal Reserve Bank of San Francisco.