INTENTIONAL Impact Investing
Grow Your Bank Account While Changing the World By Mission Driven Finance
T
raditional thinking has historically divided money — and how to leave a legacy — into two distinct buckets: either making investments to generate profits, or making grants and donations to create social and environmental change. But people are realizing these buckets don’t need to be separate — and, in fact, never really were. After all, every investment makes some kind of an impact, whether or not you’re aware of what that may be. So, why not be intentional about aligning your financial assets with your social values? Indeed, many charitably-minded individuals are turning to impact investing to generate real social and environmental change in their communities, while simultaneously supporting their financial goals. Impact investing — investing in companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return — is on the rise. It began to gain momentum 10 years ago, when people started to examine the disconcerting gap between traditional investing and philanthropy. “There is a growing interest for people today, especially for Millennials and women, who want to connect with wealth managers and financial planners that are tuned into impact investing,” said Lauren Grattan, Co-Founder and Director of Community Engagement at Mission Driven Finance.
Lauren Grattan presenting on impact investing in San Diego
42 LEGACY ARTS Issue 16 www.paragonroad.com
Grantmakers Reception - Nicole Tempel Assisi (Thrive Public Schools, borrower), Lauren Grattan, Robert Villarreal (CDC Small Business Finance, close community partner), Sierra Visher Kroha (San Diego Social Venture Partners, close community partner)
“Financial planners need to be responsive to the rising wealth of younger individuals who are asking for this,” she said. “If they don’t have these products available or the capacity to have meaningful conversations about personal and family values, prospective clients are going to pick another advisor.”
Community-Based Investing
Grattan and CEO David Lynn launched San Diegobased impact investment firm Mission Driven Finance in 2016 specifically to make it easier to invest in your community. “Most major financial institutions have rolled out impact products, and that’s a great start for investors,” noted Lynn, who has spent two decades in traditional investment management, primarily for a philanthropic family. “But most of those funds are comprised of public equities, not organizations in your own backyard where you most want to leave a lasting legacy.” “Our base premise at Mission Driven Finance is that it’s a very good, exciting thing to invest in your own community,” said Lynn. “Yet it’s really not all that easy to do. Even if you said, ‘I have a million dollars, and I want to invest — not