NPX’s Novel Vehicle Unlocks Impact Investment Capital for 7 Nonprofits

Catarina Schwab May 31, 2021

How many times have you been to an impact investing conference and wondered why nonprofits, the sector whose entire focus is to drive impact, are not in the conversation? The reason is that there aren’t many vehicles that allow nonprofits to access impact investment capital.

In May 2021, 7 nonprofits driving upwards economic mobility for underserved populations in the Bay Area and Colorado have successfully secured ~$8M in impact investment capital from 34 individuals, foundations and institutions through a novel performance-based financial product, the Impact Security, developed by NPX

The Impact Security allows a nonprofit to raise both donations and investments (seeking financial return) and explicitly links funding to the organization’s performance.

The nonprofits repay the Impact Security over time with funding from their respective Donor Impact Funds, results-based outcomes funds pre-raised from private donors who want to drive outcomes in economic mobility.

There are a few reasons this milestone is so important:

  • Proves that funders want to invest in nonprofits with returns explicitly linked to impact 
  • Diversity of investors — the 34 investors represent: 
    • 40% individuals 
      • 24% from donor-advised funds
      • 15% making direct investments
    • 25% investment funds
    • 36% private foundations

Join us to hear why a well-known pay-for-success funder, a forward-thinking community foundation and a prominent private wealth firm decided to invest in these first-time deals and why nonprofits want to be funded through this type of vehicle.

Format

Panel

Meta Themes

  • Impact Investing

Themes

Equity & Inclusion, Social Entrepreneurship

Purpose and Desired Outcome

These deals will pave the way for more impact investors to utilize their investment dollars to drive impact for nonprofits. NPX’s future opportunities will include deals in these additional sectors -- global poverty and reforestation, veterans, homelessness and more.

Audiences

  • Allocators (Family Offices, HNW Individuals, Foundations)

  • Intermediaries (Financial Advisers, Investment Bankers)

  • Asset Managers

  • Entrepreneurs

  • Service Providers

  • Government

Speakers

  • NameLindsay Beck
  • TitleCo-Founder & Co-CEO
  • OrganizationNPX, Inc.
  • StatusConfirmed
  • NameSafia Kryger-Nelson
  • TitleDirector, Philanthropic Planning
  • OrganizationMarin Community Foundation
  • StatusInvited
  • NameTeresa Wells
  • TitlePrincipal and Managing Director
  • OrganizationTiedemann Advisors
  • StatusInvited
  • NameSara Vernon Sterman
  • TitleVP, Strategic Investments
  • OrganizationReinvestment Fund
  • StatusInvited
  • NameKim Mazzuca
  • TitlePresident and CEO
  • Organization10,000 Degrees
  • StatusInvited
  • NameJosé A. Quiñonez
  • TitleCEO
  • OrganizationMission Asset Fund
  • StatusInvited
  • NameHelen Young Hayes
  • TitleFounder/CEO
  • OrganizationActivateIT
  • StatusInvited
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