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Growing your charitable capital for Mission and Impact

Donor advised funds are one of the fastest-growing philanthropic vehicles, allowing individuals and families to create short and long-term giving plans, supporting charities doing good work around the globe. Donors recommend when and to whom charitable grants are made. Other monies in those DAFs are invested for growth. Financial professionals who work with CNCF can continue to manage those investments on behalf of their clients. 

There are a growing number of DAF holders looking to have those investments reflect mission and social impact. Impact investing is one of the strategies that allow DAF holders the opportunity to use their charitable capital for greater impact.

DAF holders may recommend to CNCF to invest some of its DAF assets in “Impact Investments.” These are investments that focus on maximizing social and spiritual good first and economic returns second. Sometimes, achieving social, spiritual, or environmental goals means delaying or sacrificing financial returns. In other instances, the financial return may be commensurate with traditional investments of the same type while also providing a significant impact. Regardless, the impact for the Kingdom is the key to these investments.

CNCF considers the following in addition to traditional financial analysis:

Stage of Investment – enterprises with established, growing earnings and clear untapped market opportunities; also CNCF may invest in some early-stage enterprises. 

Contributor/Extractor – minimizing companies we deem to be“net extractors” of society’s capital and investing in those that we judge to be “net contributors.” 

Socioeconomic mix – investment in enterprises that value their employees, customers and clients across socioeconomic classes. 

Earnings reliability – CNCF looks for enterprises that have reliable, recurring revenue that results in stable jobs for employees and reduces performance risk for clients and customers

When donors recommend “Impact Investments,” CNCF will vet the opportunity according to its policies and record the investment in the donor’s DAF, receiving a certificate or equity in return. When investments return dividends and distributions, CNCF applies those, less fees, to the donor advised fund for further investment or for charitable giving. Any impact investments must be approved and managed through CNCF and not through the donor’s own advisor who may, however, manage other fund assets.