If impact investors have investment dollars then why do they still need philanthropic dollars? Good question. Last week, Anthony Bugg-Levine, CEO of Nonprofit Finance Fund (NFF), did a great job at explaining a couple key roles that philanthropy plays in impact investing at his organization. In Bugg-Levine’s interview with Forbes contributor Devin Thorpe, it was shared that:
How can we spark and amplify social impact? Lately, many mission-driven organizations have been wondering how they can use existing capital to achieve more impact. It seems that "catalytic capital" might be the answer. We highlight three different sectors' approaches to using "catalytic capital" to achieve greater social impact:
Blended capital. Bottom of the pyramid. Pay for success contracts. MFIs, CDFIs, IRIS and SMEs. Dive headfirst into a conversation on impact investing and it’s likely you’ll need a glossary of terms within reach.