Lost and Foundations

Charitable foundations move to align investments with philanthropic goals

Posted at 9:57 AM on 02 Jan 2008

Charitable foundations have historically considered their philanthropic goals to be separate from their investments, often fearing that socially responsible investing could harm their returns. Recently, though, many foundations are moving to harmonize the social and environmental effects of their investments with their charitable missions. The Ford Foundation, the second-largest in the U.S., and some smaller foundations have long been a minority seeking to align charitable and financial goals; executives and analysts say their influence has made a difference, in addition to well-publicized criticism of the Gates Foundation earlier this year. Donna Dean, chief investment officer of the Rockefeller Foundation, sums up the new trend: "Increasingly, we look for investments that provide a social benefit as well as the financial return we expect."

source:  Los Angeles Times