Social investment and impact investing
Social investment and impact investing are relatively new ways of providing finance for social impact by combining financial and social returns. Both are promising approaches, and are growing in popularity. We want to ensure these models truly serve to increase social impact. So we’ve worked over many years to develop impact measurement frameworks and to shape reporting requirements to support this. Find out how these insights can inform your approach to socially responsible investing.
Featured resources and commentary on social investment and impact investing
A light-touch and practical framework for comparing an organisation’s approach to impact against best practice.
NPC's briefing paper for trustees: An introduction.
Impact investing is making waves. Leading financial institutions are moving into the field, with over $10trn of global assets now invested sustainably, some promising both competitive financial returns and a positive social impact. But it’s vital to specify and quantify that promised social impact. Plum Lomax draws some lessons from our work to capture this impact for one impact portfolio.
Smart social investment can bring money to address some of our most enduring social problems. But the pressure is on to prove that these results are achieved. This paper shares our lessons learnt so far and builds on our experience in the social sector to suggest how we might achieve better impact measurement for social investment in the future.
NPC recently reviewed the work of the KL Felicitas Foundation, who are pioneering a new approach to investment by committing 100% of their foundation’s assets to positive social and environmental impact. Peter Harrison-Evans, who worked on the review, explores some of the difficulties of attributing impact to a particular intervention or investment. He argues that often it is best to remain focused on what your contribution was to a positive social outcome.
Our review of the impact created by the KL Felicitas Foundation (KLF), founded by Charly and Lisa Kleissner, which pioneers a new approach to investment by committing 100% of its assets to positive social and environmental impact.
Recently, NPC published its review of the impact created by the KL Felicitas Foundation, which pioneered a new approach to investment by committing 100% of its assets to positive social and environmental impact. Plum Lomax, who led on the work, explains.
Social investment offers the opportunity for socially-minded investors to increase the impact of their money. It's still early days, but already the concept has attracted much interest from funders and has the potential to help charities access long-term, affordable finance. Best to Invest? helps funders think through the benefits and risks of social investment, and how to decide if it is for them.
'Cuddly capitalism' needs a clear way of assessing if it's doing good. At NPC we have long argued that to attract more capital towards solving the world's most pressing social and environmental issues, investors need more transparency around returns; both financial and impact.
More than a quarter of the assets run by US fund managers are deemed as ‘sustainable’. How is 'sustainable' defined and who is keeping an eye on the credentials and the impact practice of these funds?
This interim learning report conducted by NPC assess the impact of the Connect Fund to date and identifies ways to improve service design and programme delivery.
Plum Lomax, NPC's Principal for Impact Investing introduces our work with the Connect Fund and their efforts to build the social investment market in England.
U2's Bono and a private equity firm seem like an unlikely pair to solve the question of impact measurement. Nevertheless, they are having a go. What pitfalls do they need to avoid?
A few weeks ago there was a lot of champagne popping about the world’s first Social Impact Bond as the results of its evaluation were released. But we should be cautious about leaping to conclusions, Dan Corry warns.
There is much to be excited about with the progress of the impact investment market. But there are still challenges to surmount. Tris Lumley talks through the who the what and the how of overcoming these barriers.
The recent report by the Commission on the Donor Experience has been received by both applause, and a thread of concern. In many ways, the report is a valuable resource for the sector, but it fails to adequately address the fundamental principle of fundraising.
Children in care and care leavers are some of the most vulnerable young people in society, with their outcomes still incredibly bleak in comparison to their peers. In recent research we outlined the type of work funders can support in order to help improve looked-after childrens' life chances. Here Rosanna Thomasoo gives an overview of what we found.
The House of Lord’s Select Committee on Charities' Stronger charities for a stronger society report recently proclaimed: 'the government’s focus on [Social Impact Bonds] has been disproportionate to their potential impact.' Here Steve Goldberg explains why he disagrees.
Terms like 'start-up' and 'social enterprise' sound like brand new approaches to pervasive social issues. But, as he explains below, James Noble has found that the model is not quite as new as we might think. And like the social enterprises of old, modern ventures need a solid approach to understanding and improving the success of their work. Read about an 'olde worlde' approach to social impact, and our guide for today's start-ups.
Last week, in the first of two blogs, Dan Corry looked at the way SIBs have emerged as a popular new idea in social policy. Here he goes into a bit more detail about the pros and cons of using them.