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What are the effects of mission-driven investment for charitable foundations?

Rather than being profit-driven, charitable foundations are mission-driven. As a consequence, it seems sensible for charitable foundations to act in mission-driven ways when investing, i.e. to align their investments with the foundation’s mission. 

However, little is known about the success of mission-driven investment. In order to start filling this research gap, in a newly published article Prof. Dr. Georg von Schnurbein and Dr. Tizian Fritz put forward following question: How does a mission-driven portfolio selection affect investment outcomes?

Based on three model foundations, they analyze what effects mission-driven portfolio selection has on performance, risk, disbursements, and level of mission achievement. The results of this exploratory investigation suggest that foundations can increase their social mission fulfillment through investment selection without significantly risking their financial returns.

View publication (open access): 

Fritz, T.M. / von Schnurbein, G. Beyond Socially Responsible Investing: Effects of Mission-Driven Portfolio Selection. Sustainability 2019, 11, 6812 >>