Investing for impact is gaining significant traction, and innovative approaches like blended finance are seeing growing interest among both impact- and return-seeking stakeholders.

For some non-profits, impact investing and blended finance will be new territory. The creation of separate commercial venture structures often implicit in blended transactions, is a departure from fundraising that is familiar to most non-profits. This Issues List is designed to help the non-profit organization to spot issues and reflect on resource of allocation, so that the ultimate structure responds to the non-profit’s and its for-profit investors’ objectives. It is also intended as a checklist of considerations for non-profit advisors who may be less familiar with profit-making businesses and the investors in them. 

Impact Investing Issues List for 501(c)(3) Non-profit organizations creating a for-profit legal entity

Patricia Sulser, Carol Mates, Laura Hills, Barbara Day