In collaboration with CIID’s portion of Abundance Circle’s first phase of work, Rockefeller Philanthropy Advisor’s (RPA) impact investing team has completed a review of the efficacy of impact investing to date, its relationship to grantmaking, and innovative models that may lead to prototypes in Phase 2. The activities of this body of work include interviews of 20 leading foundations, 10 years of private foundation tax return data and insider practitioner knowledge.

​

 

As for market trends, interest and activity for impact investing have surged during the last ten years. Using one of the broadest definitions of impact investing as defined by the US SIF, sustainable and responsible investing from U.S.-based asset owners has grown more than 300% since 2012 to a current market size of $17.1 trillion or 30% of total assets under professional management.

​

 

Based on interviews of leading foundations using the tools of impact investing, these tools are largely seen as successful. Based on data from US foundation tax returns, the 990FP, from 2010 to 2020, only 20% of 571 foundations (over $20M in assets) are using Program Related Investments to reach their 5% require payout. The remaining 80% are using PRIs over and above the required payout, indicating that grant dollars have been reduced by PRIs in only 1/5 of foundations. Instead, PRIs – if used thoughtfully – are seen as adding an important tool to a foundation’s toolkit to achieve impact and recycle resources.

​

 

Finally, as the project moves into Phase 2, we build upon the most compelling financial vehicle innovation of the last few decades. From the time-tested Community Development Financial Institution (CDFI) to more recent revenue-based financing, we have compiled a full list of structures that inherently integrate financial and impact priorities.