How can a foundation achieve their philanthropic mission when they have a portfolio of investments that does not represent their values?

Socially responsible investing

As board president, I am as concerned about how the portfolio did as I am about what the companies within it are doing. We should be proud of our portfolio’s holdings and ensuring that their businesses reflect the mission and spirit of this philanthropic legacy.

Traditionally, the goal of investing was all about the bottom line, but the growth of socially responsible investing (SRI) is changing the landscape. Sustainable investing is a means of aligning one’s personal values with money. Thus, by incorporating SRI into your portfolio, you no longer have to compromise your ideals in favor of profit. Nowhere is this more important than in a foundation or endowment’s portfolio, as their mission is at the core of everything they do.

Portfolio alignment

ALINE Wealth’s Portfolio ALINEment starts with an assessment of the board’s core values and mission. This value mapping exercise involves surveying each board member with a quick and simple 10-minute exercise to get their take on several value pillars. These pillars reflect significant environmental, social and governance issues facing the world today, and are somewhat modeled from the United Nations 17 Sustainable Development Goals.

The output is a Value Map Report that outlines the sustainability pillars most relevant to the board’s mission and values. Abd the report is fleshed out through deep discussions with board members to ensure they accurately reflect their wants and needs. On occasion, these are done during intensive retreats where we facilitate the deep discussions.

We incorporate the findings in the foundation’s investment policy statement (IPS). This is reviewed periodically to ensure it’s up to date, and in line with the current needs and desires of the foundation and board.

Read the full article about portfolio alignment by Peter Klein at Exponent Philanthropy.