The idea of impact investing tends to divide people into two groups.

Some believe it is the best-of-both-worlds; a way to invest that bolsters their mission while generating competitive returns. Others fear that it is too-good-to-be-true; a distraction that cannot consistently produce returns that are comparable to traditional investing models.

In the meantime, families looking to initiate or expand impact investing strategies should reflect on how deeply their philanthropic mission permeates their investment philosophy. They should ask how far they are willing to go to assemble an ecosystem of assets that support their impact goals.

A successful impact investing strategy requires clarity of intent. Foundations must ask “Why do this?” and “How is best to proceed?”

Knowing exactly what is in your portfolio is the first step. Could there be any holdings working at cross-purposes with the mission?

Read the full article about impact investing from National Center for Family Philanthropy