Aggregating Impact

Aggregating Impact

According to a new report from FSG Social Impact Advisors, a growing number of foundations and other funders are using mission-investment intermediaries — organizations that collect capital from multiple sources and reinvest it in people and enterprises — to deliver both social impact and financial returns. The report, Aggregating Impact, finds that intermediaries offer advantages over making mission investments directly, including reduced risk, lower transaction costs, specialized expertise, performance reporting, and an expanded deal flow. Funded by the Surdna Foundation, the report also finds that approximately one-third of the U.S. foundations active in mission investing have collectively invested more than $521 million in intermediaries.