If foundations are to achieve their full ambitions for social impact, they must find creative ways to use every resource they possess. Increasingly, we see foundations using investments to further their missions — while also providing financial returns — as a way to complement traditional grantmaking, an approach we refer to as mission investing.  

DEFINITION

Mission investing is the practice of using financial investments to help achieve a foundation's mission, including both market rate and below market rate investments, sometimes referred to as Mission Related Investments (MRIs), Program Related Investments (PRIs), or impact investing.  

ISSUE AREAS

Mission investing is gaining momentum among US foundations. Over the past decade, the number of foundations engaging in mission investing has doubled, and the new funds invested annually have tripled. Mission investments are also diversifying. Once largely restricted to low-interest loans, they now span a wide spectrum of debt and equity investments. 

FSG’s research has provided comprehensive and path-breaking information to help foundations better understand and utilize mission investing. Our reports cover:

• A comprehensive analysis of mission investing trends by US foundations
• A definitive analysis of the legal issues surrounding mission investing
• An exploration of the role of intermediaries, including an online reference tool for more than 1,000 mission investing intermediaries
• Research currently underway to explore the use of mission investing to achieve program strategy in climate change

FSG's team of consultants offers research and consulting services in mission investing. We have collected and compiled the most comprehensive research from the field to provide analytical tools that advance mission investing. Our strategy consultants are adept at incorporating mission investing tools into the development of program strategy and impact evaluation for our clients.