Impact Investments: Perspectives for Australian charitable trusts and foundations

Abstract

Australia, like many jurisdictions around the world, has witnessed increasing interest and activity in impact investment over recent years as businesses, governments and communities seek new solutions to enable an inclusive and sustainable society. Philanthropists, foundations and charities as well as institutional investors have implemented impact investment strategies. These strategies aim to yield financial returns, as well as positive and measureable social and environmental impacts. Done well, impact investment provides the opportunity for charitable trusts and foundations to deploy a greater proportion of capital resources in support of their mission, engage with a broader range of solutions for addressing social and environmental challenges, and sustain and grow assets for future use. Charitable trusts and foundations may also use their resources in a manner that catalyses and attracts additional capital to social and environmental needs.