From Blueprint to Scale: The Case for Philanthropy in Impact Investing

This report describes current practices in enterprise philanthropy through case studies drawn from Acumen Fund's portfolio in agriculture, energy, health, and microinsurance. It takes an in-depth look at successes and setbacks in these cases, and uses them to illustrate four themes that characterize effective enterprise philanthropy, namely purpose, profitable proposition, progression, and persistence. As interest grows in market-based solutions to address the problems of poverty investors struggle to find good opportunities for impact investment. The report states that impact capital alone will not unlock the potential of impact investing. It recommends that philanthropic funders should:

• Consider moving into enterprise philanthropy through a range of approaches;
• Create and back new specialist intermediaries;
• Embrace risk and acknowledge failures;
• Expand perspective to encompass markets and ecosystems.

It also suggests that impact investors should collaborate with funders on new models and markets as well as align investment strategies with aims and expectations.