National Philanthropic Trust Adds Impact-Investing Portfolios for Donors

The National Philanthropic Trust, one of the nation’s largest donor-advised-fund sponsors, will begin offering new socially responsible investment portfolios for its clients.

Before making grants to nonprofits, DAF holders will be able to invest their philanthropic dollars in portfolios that support four causes: economic opportunity for underserved communities, environmental stewardship, the advancement of women in the workplace and beyond, and a broad social-impact portfolio that supports conservation, financial inclusion, and health-care access. The portfolios contain traditional environmental, social, and governance funds that both screen out companies with less favorable practices and select those with favorable practices. The new portfolios offer liquidity and returns similar to traditional investments.

The fund sponsor, which currently manages $8.1 billion in charitable assets, began offering impact investments in 2015. Since then, the market and donors’ interest in impact investing have grown substantially. And donor-advised funds are gaining in popularity as an impact-investing tool. Last year alone, donors who gave through Fidelity Charitable, the largest donor-advised-fund sponsor, put $22 million into impact investments offered by nonprofits.

The National Philanthropic Trust worked with CapShift, a firm that helps DAF sponsors and donors with impact investing, to build these portfolios based on donor interest and feedback. The new portfolios replace the trust’s existing impact options.

Eden Stiffman reports on nonprofit trends and fundraising for the Chronicle. She recently interviewed MIT’s Epstein Whistle blower about her own lack of fundraising ethics training, and other topics. She also writes a popular weekly fundraising newsletter. Email Eden or follow her on Twitter.