Investors Want to Fund Impact-Focused Organizations. 8 Reasons Why You Should Care

Impact-focused organizations are winning!

Impact-Focused Organizations Are Winning


In case you haven’t heard! Donors and investors want to fund social impact. In fact, many high net worth donors and investors actually need to invest in reputable impact initiatives.

There are many myths and misconceptions when it comes to impact. Regularly, we are asked questions like, what is impact, how do I raise for impact, why would an investor care what our company’s impact is, how do we measure our impact, and much more. 

At Social Impact Solutions, we exist to help you measure and market your impact. We understand that everyone has a very different story related to impact and that very few instances require an out-of-the-box, cookie-cutter approach. 

Who Should Measure Their Impact


We value all of our clients. Our clients are as varied as the need for impact is, but there are a few commonalities with companies and organizations that should measure their impact. 

  • Investment firms
  • Healthcare providers
  • Nonprofit organizations
  • Research institutes
  • Lifestyle medicine practitioners
  • Family offices
  • Global for-profit organizations
  • Impact-driven social enterprises

One category of clients we hold dear to our hearts is the philanthropic nonprofit clientele. For nonprofits, impact measurement and marketing are essential. That’s because donors all but require organizations to report the social and economic impacts of their charitable gifts. In short, donors want to fund impact-focused organizations very badly and are willing to leave organizations they have been loyal to and take their funds elsewhere. 

Why Measure & Market Your Impact

Impact-focused organizations are attractive to donors and investors for many reasons. Read on to learn a few of the most significant.


1. Impact-focused organizations have proven value.


When potential donors can see an impact report from your team that identifies exactly how well you have achieved your mission thus far, they will understand why you are a more effective change-maker than peers in your field.


2. Impact-focused organizations can quantify success.

One thing stakeholders across all industries love is quantifiable successes. When a potential donor can see the relationship between the funds or services they provide you, and the success you can create, they are even more excited about supporting your mission. You can quantify your accomplishments with a social or economic impact report.

3. Impact-focused organizations have metrics that matter.

We’ve spoken about the value and about having metrics that matter. Both are indeed critical. Together they translate to one thing – donors care about seeing metrics of success and understanding how you have delivered on them with precise, hard data. Help your potential donors grasp their ROI with a needs assessment or an impact report.

4. Impact-focused organizations are more trustworthy

One word always seems to come up when we discuss impact-focused organizations. Impact-focused organizations are trustworthy. When you display your successes and even your growth areas from a basis of hard data and clear metrics, you tell donors that they can trust you to be honest and deliver on your promises.


5. Impact-focused organizations embrace transparency


Many organizations are fearful of transparency. It’s understandable. Running a company or nonprofit is extremely difficult. You work day and night to make a vision a reality, and sharing the good, the bad, and the ugly with donors and investors can feel like the last thing you want to do. Here’s the good news: Your stakeholders want to know the good and the bad. In fact, if all they hear from you is how wonderful everything is, they are likely losing trust in your leadership. Remember, transparency is a good strategy. Don’t feel shackled to share everything with everyone all of the time. Use your judgment, learn from mistakes, and have open conversations with your donors and investors.

So, what do impact-focused donors and investors look for before investing?


While there are many reasons why someone would part with their hard-earned funds, there are three primary reasons investors will invest for impact.

1. They believe in your mission
2. They trust you will execute that mission and do it well
3. Your values are aligned with theirs


Whether you’re a nonprofit or corporation, we guess that these reasons may have resonated with you. If you’re ready to learn more about how proven value, quantified success, metrics-driven progress, and a sense of trust can spur growth for your organization, we’re prepared to help. If you want to learn more about measuring your impact, read this blog on Social Return On Investment. If you’re ready to transform your ideas into insights, schedule a consultation with Social Impact Solutions today.

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