For high-net-worth families, philanthropy and investing no longer need to live in separate worlds. Increasingly, families are looking for ways to align their wealth with their values, blending financial returns with meaningful social and environmental outcomes.
In this edition of our Philanthropy Series, we explore how families can embrace impact investing as a strategic complement to traditional giving, allowing them to amplify their legacy and influence positive change — while preserving and growing wealth across generations.
1. ESG Considerations for Larger Estates
Environmental, Social, and Governance (ESG) investing is no longer a niche approach — it has become a critical lens for evaluating risks and opportunities in today’s complex markets. For larger estates, incorporating ESG factors into the portfolio can help align family values with long-term investment strategies.
• Environmental: Supporting companies that are reducing carbon footprints, investing in renewable energy, or promoting sustainable practices.
• Social: Investing in organizations with strong diversity, labor practices, and community engagement.
• Governance: Prioritizing companies with transparent leadership, ethical decision-making, and responsible shareholder practices.
By embedding ESG principles, families can pursue competitive financial returns while contributing to solutions that align with their charitable priorities.
2. Program-Related Investments (PRIs) and Mission-Related Investments (MRIs)
For families with private foundations or donor-advised funds (DAFs), Program-Related Investments (PRIs) and Mission-Related Investments (MRIs) offer powerful tools to extend philanthropic reach.
• PRIs are investments made primarily to achieve a charitable purpose, with potential for capital return. These count toward a foundation’s required annual distributions. For example, a PRI might be a low-interest loan to a nonprofit developing affordable housing.
• MRIs, while seeking a market rate of return, are aligned with a foundation’s mission — such as investing in a clean energy fund to address climate issues central to the foundation’s work.
By leveraging PRIs and MRIs, families can deploy more capital for impact — moving beyond grantmaking and putting endowment assets to work for their values.
3. Measuring Financial Returns and Social/Environmental Impact
One of the most common questions we hear is: “Can I pursue impact without sacrificing returns?” The good news: Impact investing can offer competitive returns, but success depends on disciplined strategy and careful measurement.
Best practices for measuring both financial and impact outcomes include:
• Setting Clear Goals: Define both financial targets and impact objectives from the start.
• Using Impact Metrics: Adopt established frameworks (like the UN Sustainable Development Goals (SDGs), GIIN’s IRIS+, or Impact Management Project (IMP)) to track progress.
• Regular Reporting and Review: Monitor investments for both performance and mission alignment, adjusting strategies as needed.
Families that integrate impact with disciplined investment oversight are well-positioned to achieve both meaningful change and enduring wealth.
At Burrows Capital Advisors, we help high-net-worth families navigate the evolving world of impact investing — connecting their wealth to their values in a way that reflects who they are and what they stand for. Whether you’re new to impact investing or looking to deepen existing strategies, we can help align your philanthropic and financial goals for lasting impact.
Interested in learning how to integrate impact into your family’s portfolio? Contact us to start the conversation.
Cetera Advisors exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice.