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$120 Billion Market for Impact Investing

Rishi Malhotra July 6, 2010

Hope Neighbor, from Hope Consulting,  just posted an interesting article on Tactical Philanthropy at the Tactical Philanthropy Advisors’ blog. She wrote that right now there is a massive $120 billion market for impact investments for individuals according to a new study. Indeed, the Money for Good research done by Hope Consulting analyzed what Americans need in order to make more impact investments. The survey was done on 4,000 Americans with incomes above $80,000.
Half of the $120 billion market for impact investments is for investments under $25,000 and over half of those that make over $1 million per year want to do impact investments of under $10,000. This shows that there is a large market for even very small investments. And interestingly, over 90% of those surveyed asserted that they would not decrease their charitable giving.
There are several other important pieces of information that was gleaned from this study. Americans are 1.8 times more likely to use their money in an impact investment rather than a charity. They want to receive information about impact investments from their current financial services provider rather than other sources. Furthermore, there are seven different steps that can be taken to open up the impact investing space:
1. Clarify what impact investing means.
2. Have products available for small investments under $25,000.
3. Tailor messages to different investment segments.
4. Make impact investing available to individual investors, not just accredited investors.
5. Emphasize that these are investments that one can get returns from.
6. Address issues relating to how new the market is.
7. Increase awareness of impact investing and opportunities within it to individuals and their financial advisors.
This is a huge, growing market opportunity that is gaining traction in the mainstream community. Come to SOCAP10 to learn about the cutting edge in this field!
For the full article, click the picture or here.

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