Key Points

· A familiar private foundation tool is being used by the Greater Cincinnati Foundation as a way to engage donor advisors to make a positive difference in the community.

· While due diligence and risk management of the financial return for these investments is crucial, the social return to be achieved is the primary consideration.

· Donors can achieve a modest financial return, which is recycled into their donor-advised fund, by investing locally in projects that make a significant difference.

· Initial donor interest in participating in impact investing has been strong and provided valuable insight into program design.

· The cost of an impact-investment program can be viewed as an investment in the community – much like a grant. If the individual investments are made carefully, the net effect should be a greater impact than grants alone can achieve.

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