Foundations are increasingly focused on aligning their investments with their missions, a process known as mission-related investing. While this trend has been growing for decades, the recent surge in socially responsible investing has made mission-related investing a growing priority for foundations of all sizes.
Mission-related investments are investments made by foundations to achieve both financial and social goals. These investments are designed to create positive social or environmental impact that are aligned with the organization's mission, while also generating financial returns.
Unlike program-related Investments (PRIs), MRIs do not count towards the foundation’s annual 5% distribution requirement.
To provide additional clarity, we have defined the difference between impact investing, PRIs, and MRIs below.
Mission-related investing is becoming an increasingly important priority for foundations, as it enables them to use their investment portfolios to support their mission and values. By aligning their investments with their missions, foundations can ensure that their financial resources are being used to have a positive impact on society and the environment. Additionally, mission-related investing can help foundations to:
For foundations, managing mission-related investments can be challenging. A lack of investment expertise, resources, and time can make it difficult to effectively manage these investments. An outsourced chief investment office (OCIO) is a third-party that provides investment management services to organizations, including foundations. An OCIO can offer a range of services, including portfolio management, investment strategy development, and risk management. An OCIO can bring a wealth of investment knowledge and expertise to a foundation, as well as provide access to sophisticated investment tools and resources.
For example, an OCIO can assist a foundation in developing a Mission-Related Investment plan via:
Mission-related investments (MRIs) have emerged as a significant focus for foundations, enabling them to harmonize their investments with their mission and values. By investing in mission-aligned opportunities, foundations can simultaneously attain financial returns and social impact. MRIs also allow foundations to employ their endowments to generate positive social and environmental outcomes, consistent with their objectives. Utilizing OCIO services can facilitate mission-related investing for foundations by offering essential expertise, resources, and support, empowering them to leverage their assets effectively for meaningful change.
Impact is our ethos: At Fire Capital Management, we seek out opportunities that provide both financial and social returns. We’ll work with you to develop an impact strategy to help you focus your giving on the causes that you care about and to build your legacy, from the way you invest to the way you give.
Get started on making the impact that's important to you.
Looking for more detail on Sustainable and Impact Investing terminology? View our ESG Investing Definition Glossary.