Momentum is picking up for investments that can produce a financial return while improving social conditions, as pressure persists on traditional funding sources and the ranks of social entrepreneurs increase.
Rising interest in so-called impact investing has many foundations either already making investments or considering them as an extension of their traditional philanthropy or grant-making.
Foundations such as Kresge are making program-related investments from their grant budgets for below-market or zero-percent returns. Those can take the form of loans, equity stakes, loan guarantees in which foundations agree to back other loans, and cash investments.