Impact Investing

Changing how we think about return on investment.

MakeWay’s impact investment portfolio generates positive, measurable social and environmental impacts alongside financial returns.

Impact investing + philanthropy = more environmental and social impact

What if investments could generate not only a financial return, but a social return? What if we could take that even further and apply that in a charitable context to make an even bigger impact?

Since our inception, we have engaged in responsible investing. We believe in using economic levers to create positive social change and encourage corporate responsibility. Investments are made in companies, organizations, and initiatives to generate positive social impact alongside financial return.

MakeWay offers the country’s first fully-customizable 100% impact invested donor advised fund – ImpactDAF. This unique philanthropic vehicle provides the grantmaking functions of a DAF, while also mobilizing the underlying investments for positive impact.

At MakeWay, we are committed to growing impact investing in Canada and creating a space for the private, public, and social sectors to work together to uncover new solutions to environmental and social challenges.

MakeWay’s Impact DAF is the first customizable donor advised fund in Canada to be 100% invested for impact.

An ImpactDAF at MakeWay offers a new way to maximize philanthropy for social and environmental good by bringing charitable giving and impact investing together in a single fund.

Impact investing nearly doubled between 2016-2017, indicating a sea change of people wanting to do more with their money by integrating economic, social, and environmental returns. However, blending philanthropic and investment tools in service to an aligned mission is still a challenge. MakeWay’s ImpactDAF offers a unique solution where investments and grants have a shared purpose.

The ImpactDAF is designed for foundations, families, and individuals opening a fund with a minimum $1M balance. Funds are invested with a customized strategy that ensures individual mission and values fit, and provides impact measurement using a methodology aligned with the UN Sustainable Development Goals (SDGs).

ImpactDAF is good for 2

Funds in MakeWay’s ImpactDAFs are invested with and managed by the Genus-SVX Impact Investment Counsel.

Genus-SVX Impact Investment Counsel: A strategic partnership designed to address the challenges faced by foundations, high net worth individuals, charities, endowments and pension funds, in becoming impact investors. The Counsel seeks to make impact investing easy to execute, and to mobilize $100 million in capital toward impact investments by 2020.

Genus manages the ImpactDAF investment portfolio as professional fiduciaries, allocating funds across the impact spectrum. SVX provides impact investment sourcing and due diligence for private equity investments of the ImpactDAF.

ChangeCapital is part of our new approach to philanthropy. It’s a smart donation option that allows donors to amplify the social return of every dollar given.

How does it work?

  1. You make a tax-deductible donation to ChangeCapital at MakeWay.
  2. MakeWay invests ChangeCapital in socially and environmentally focused opportunities. For example, loans to create social housing or equity investments that build a green economy. ChangeCapital investments generate both a financial and social return.
  3. At the end of the investment term, the returns and capital can be directed to charities, creating more social good.

Together, we add more social impact to financial returns on every dollar you donate.

How is ChangeCapital different from traditional philanthropy?

Donations to charities are usually made from money set aside by donors for charitable purposes and are typically put to work on immediate challenges. While investments are usually treated separately, with a strong financial return as the primary objective. Often, this money is invested in traditional stock and bond markets. But these investments typically don’t advance the mission of donors and foundations.

In contrast, donations to ChangeCapital are invested to create positive social and financial returns, putting both your philanthropic and your investment money to good work immediately. As the investments mature, ChangeCapital investments can be put to work a second time by reinvesting the funds or granting them to charitable activities.

What kind of investments does ChangeCapital make?

Investments are made in sectors that advance MakeWay’s goal of advancing smart, integrated solutions to tough social and environmental problems. These include:

  • Low-carbon economy
  • Affordable housing
  • Sustainable food systems
  • Freshwater protection
  • Environmental innovation
  • Economic opportunities for marginalized communities

In 2013, MakeWay joined with Vancity Community Foundation, the Bealight Foundation, the Trico Foundation, and Reseau D’Investissement Social Du Quebec to form the New Market Funds Society (NMFS). These organizations, along with many others, recognized the need to develop and support the growth of impact investing, and help make funds available for social good. NMFS has been designed to act as a community-focused impact investment intermediary, with a goal to improve the efficiency and effectiveness of charities in the communities they serve.

MakeWay is part of a new impact investing partnership with SVX. We are leading research on new impact investing solutions and supporting capacity building for charities to enable their use of the SVX platform, which connects impact ventures, funds, and investors, for mission-aligned investing.

Learn more about Impact Investing at MakeWay:

Leanne Burton

Leanne Burton
Director, Partnership Development
Leanne.Burton@makeway.org