emerging
Stagnant Impact Investing
Impact investing remains relatively low despite its potential for aligning investments with mission.
Themes
Timeframe
long-term
Categories
Detailed Analysis
Despite growing interest in aligning investments with mission, the adoption of impact investing among family foundations has plateaued. The report shows that the percentage of foundations engaging in impact investing in 2025 (19%) is the same as in 2015, and even slightly lower than the 28% reported in 2020. This suggests that while some foundations are exploring and implementing impact investing strategies, broader adoption faces barriers. The potential for impact investing to generate both financial returns and social impact remains largely untapped by the majority of family foundations.
Context Signals
Growing awareness of ESG (Environmental, Social, and Governance) investing
Development of new impact investing vehicles and platforms
Potential for regulatory changes to incentivize impact investing
Edge
Increased demand for impact investing opportunities could lead to the development of more accessible and tailored products for family foundations.
Foundations may begin to integrate impact considerations across their entire investment portfolio, not just a dedicated portion.
This trend could spur greater collaboration between foundations and impact investors to scale up successful models.
