At the World Food Bank, we are proud to work with inspired investors who put their investments to work for both financial and social gains and who believe that impact investments are the best and most sustainable way to make change in the world.
DID YOU KNOW?
One way that investors can maximize the social impact of their investments is through the use of a Donor Advised Fund (DAF).
ADAF is a tax-smart, philanthropic investment account that allows you to grow your assets and invest more money in the issues you care about.
- Any individual can easily open a DAF by talking to a financial advisor or DAF administrator;
- Contributions to DAFs are generally tax-deductible and are made for the purpose of future distribution to social impact organizations;
- Prior to distribution, assets within a DAF can be invested in the market or private institutions to grow the value of the distribution. DAF owners maintain advisory privileges over the fund’s investments and future distributions;
- In addition to tax-free growth, DAFs provide investors benefits on: 1) income tax deductions, 2) capital gains taxes, 3) estate taxes, and 4) alternative minimum taxes (if subject).
UNTAPPED IMPACT OPPORTUNITY
When it comes to mobilizing innovative, market-based solutions to large global challenges, like food security and global poverty, many financial experts concede that there is an enormous untapped opportunity in driving more capital from DAFs to impact investments.
- Assets in DAFs grew from $32B to $85B from 2007 to 2016;
- Contributions to DAFs have had a 20.9% compounded growth since 2010;
- The payout rate from DAFs was 22% in 2017, with the remaining 78% active in market investments..
If harnessed, the conscious deployment of DAF funds into the impact investment space would have a huge impact on our world.
And many forward-thinking investors are already utilizing mechanisms available to investors who want to use their DAFs to support market-driven, innovations, as outlined in this paper from the MIT Sloan School of Management and PRIME COALITION.
At the World Food Bank, we are working to revolutionize global food systems and lift 1.2 billion people out of poverty through our systematic Hub & Spoke approach and innovative finance platform that empowers stakeholders across the agricultural value chain.
Investing in the World Food Bank not only provides great financial returns, it gives investors the opportunity to be part of the solution to create stability for farmers and global economies.
We welcome the opportunity to talk with you more about your investment and impact goals, as well as ways you can get involved with our work.
For more information on our impact investing opportunities, please send us an email today at email@example.com.