Not sure the Democratic debate got beyond bashing the rich last evening to address SIBs, meanwhile the IRS seems to be working to encourage the sector…
DeBoskey: Impact Investing Gets An IRS Boost
Bruce DeBoskey – Denver Post
Impact investing is one of the hottest topics in the philanthropic sector. It involves investments made with the intention of generating not just a financial return, but also a social or environmental impact — the double bottom line.
Until just recently, some foundation directors with an interest in impact investing felt restrained by their fiduciary duty to “exercise ordinary business care and prudence” in providing for the financial needs of the foundation, the breach of which could result in negative tax and other consequences.
In the September publication “Investments Made for Charitable Purposes,” the IRS clarified this obligation and made thoughtful impact investing for foundations easier.
The new IRS notice states, among other things, that foundation managers now can consider whether an investment “is in furtherance of the private foundation’s charitable purposes,” even if the expected rate of return may be less than other possible investments.