Become a Climate-Focused Donor Capitalist
Innovative Strategies for Investing Donated Capital
By Jared Gonsky – December 13, 2022
This article was recently featured on Impact Entrepreneur. Read more here.
- A compelling climate tech company
- A LEED-certified community center building project
- A solar panel installation project for your house of worship or child’s school
- A new film that helps raise awareness about the climate crisis (potentially earning you a producer’s credit!)
- And countless other investments!
While traditional venture capitalists may be constrained by their sole focus on financial returns or might turn down some of the most potentially impactful green investments because of their perceived risk, “donor capitalists” can invest risk-free with tax-deductible donated capital in what we at LOHAS refer to as “Tax-Advantaged Impact Investing.”
For example, one of our DAF holders wanted to address issues of climate justice by investing in ventures that address the disproportionate effect of climate change on the underserved and was thrilled to invest their DAF funds into Re-volv and BlocPower. Re-volv facilitates solar panel projects for nonprofits, while BlocPower replaces fossil fuel-burning appliances with all-electric heating, cooling, and hot water systems for buildings in select communities. Our donors also like to invest in areas of the climate crisis that they feel might not receive the attention it deserves, like, for example, SeaAhead Ventures, which invests in blue technologies, including sustainable aquaculture, fisheries management, coastal resilience, and the future of ports and shipping.
Unfortunately, most large DAF sponsors don’t allow private sector investment at all or offer very limited “menus” of investments. In doing so, they prohibit donors from investing in the impact investment opportunities that they are most passionate about – climate-related or otherwise. This is an unfortunate missed opportunity because society could benefit significantly from harnessing the full potential of DAFs to fund initiatives and technologies that can help mitigate and adapt to climate change.
LOHAS is a leading Donor-Advised Fund sponsor that distinguishes itself by having no investment menu or minimums when facilitating the impact investing goals of its clients. LOHAS is at the forefront of a societal movement to do more impact investing by better utilizing donated capital and assets, fully unlocking the power of DAFs, and supporting entrepreneurial donors.