Impact Investing Is Hot: Why Am I Worried?

In this article for Minnesota Council on Foundation’s Giving Form I describe the challenges I see facing the field of impact investing.

After decades crying in the wilderness, I should be happy now that investing for good has hit the mainstream. Right? Mainly, I’m optimistic about the flood of philanthropically minded investors shifting their resources in pursuit of their mission, beyond the 5 percent customary for most foundations.
Perhaps it’s akin to sending your children off to college to live their independent, adult lives. I’m hopeful, but I worry.

As it moves into the mainstream, impact investing faces four threats: impact washing, insufficient diversity, lack of transparency, and risk aversion

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