Using Donor-Advised Funds to Invest in Early-Stage Entrepreneurs

Alex Amouyel, executive director of Solve, and Casey van der Stricht, principal of Solve Innovation Future at MIT Solve, write why and how donors should use donor-advised funds (DAFs) to invest in innovation toward achieving the UN Sustainable Development Goals.

The article authors express the issue where with DAFs, there are no required disbursement rates, thus money can sit in DAFs for years before donors grant them out.

While the money waits, only a small percentage is invested for impact, and even less is allocated to venture impact investing.

The authors tackle the question: What if donors could leverage their DAFs toward impact investing, specifically venture investing?

To fill in the "pioneer investment gap" for early-stage social enterprises, the authors recommend providing the patient capital early-stage entrepreneurs need and using DAFs for social venture investing.

Amouyel and van der Stricht advise that families, foundations, and institutions interested in supporting early-stage social innovators can use their existing DAF capital (or move new capital into DAFs) can take the following next steps: 1) Select the right DAF sponsor; 2) Define your investment thesis; 3) Think about what additional, non-financial support you can provide; and 4) Work with partners.

Read the Entire Article


Selected Foundation News

A customized collection of news from foundations from around the Web.

The Impact Investing Case for Telecom Companies

"We are so used to being almost permanently online that we don't really appreciate what we have and do not really know what to do when we're not," Joni Mitchell wrote in her 1970s song "Big Yellow...more

When Does Impact Investing Make the Biggest Impact?

The concept of "impact investing" has taken off in recent years, with more than $1 trillion in assets under management. But a new study out of Harvard Business School suggests that while impact...more

Svx Launches Major Update to Impact Investing Opportunity Database

"All investments are impact investments," says Adam Spence, CEO of SVX, a non-profit financial services firm that has just launched Canada's first index designed to measure the impact of investments...more

5 Ways to Guide Clients on Esg and Impact Investing

Environmental, social, and governance (ESG) investing has gained popularity in recent years as clients seek to align their investments with their values and promote positive change in the...more

Leading Impact Investors and Philanthropists Convene for
Foundation: Silicon Valley Community Foundation, California Endowment

In 2024, Los Angeles will host the Mission Investors Exchange 2024 National Conference, an annual conference that brings together more than 750 philanthropy and impact investing leaders from across...more

Leading Impact Investors and Philanthropists Convene for Mission Investors Exchange 2024 ...
Foundation: California Community Foundation, California Endowment

Ava DuVernay financed her latest film with money from the Giving Pledgean initiative of the California Endowment, the largest US foundation to commit its entire $4 billion portfolio to social and...more

Leading Impact Investors and Philanthropists Convene for Mission Investors Exchange 2024

In what may be a first for a major US city, Los Angeles has been chosen as the site of the 2024 Mission Investors Exchange National Conference, a conference that will focus on "investing in social...more

New Inclusive Creative Economy Strategy to Demonstrate That the U.S. Creative ...
Foundation: Marguerite Casey Foundation, Marguerite Casey Foundation, Rockefeller Philanthropy Advisors, Skoll Foundation, Target Foundation, Ford Foundation, Philadelphia Foundation, Rockefeller Foundation

"The US creative economy was most recently valued at over $1 trillion by the National Endowment for the Arts," per a press release, "even before considering film, fashion, video games, beauty, food,...more

Dentsu Creative Joins Forces with the Global Energy Alliance for People and Planet (Geapp ...

"No one country and no one organization can achieve this alone," says GEAPP Chief Communications Officer Kate Wills. "This is why we are committed to forming an ever widening and diverse alliance...more

Wilkes Center Announces 7 Finalists for $500K Climate Launch Prize

The University of Utah's Wilkes Center for Climate Science and Policy has narrowed its list of finalists for its $500,000 Climate Launch Prize to seven. The goal of the prize, which is one of the...more






Ganesh Natarajan is the Founder and Chairman of 5FWorld, a new platform for funding and developing start-ups, social enterprises and the skills eco-system in India. In the past two decades, he has built two of India’s high-growth software services companies – Aptech and Zensar – almost from scratch to global success.




Federal Government Grant and Assistance Programs



Edited by: Michael Saunders

© 2008-2024 Copyright Michael Saunders