A new responsible investing initiative is set to reshape Australia’s philanthropic sector.
The Endowments for Impact Challenge, a first-of-its-kind open tender competition, is calling on financial advisors to present innovative strategies for aligning charitable endowments with responsible, mission-driven investment practices.
This challenge represents an exciting step toward embedding responsible investing as the norm for charitable endowments
Australian Communities Foundation (ACF) is proud to support this groundbreaking initiative, launched in 2024 by six leading trusts and foundations: The Reichstein Foundation, Dusseldorp Forum, Besen Family Foundation, Oranges & Sardines Foundation, Northern Rivers Community Foundation and Inner North Community Foundation. Together, these organisations are seeking advisers to manage a combined investment pool exceeding $170 million, ensuring their assets are working for positive social and environmental impact.
Andrew Binns, ACF Chief Executive Officer, highlighted the significance of the initiative in raising awareness of the growing demand for responsible and impact investing.
“This challenge represents an exciting step toward embedding responsible investing as the norm for charitable endowments.
“In the history of philanthropy, granting and investing were treated separately for so long, with investments focused on income generation. Since ACF announced its divestment from fossil fuels in 2018, the organisation has been a leader in the sector’s transition to align investments with mission.
“Today, 100 per cent of our portfolio is responsibly invested with a growing impact investment portfolio. As a Foundation committed to responsible and impact investing, we see this challenge as a crucial step in encouraging the broader philanthropic sector to align investments with values. It’s an opportunity to drive real change and inspire others to follow suit.”
Rachel Ball, CEO of Reichstein Foundation, emphasised the importance of this initiative in pushing the boundaries of how Australian trusts and foundations invest their assets.
“Many of us have been working closely with our advisors to shift our endowments towards responsible investment, but this challenge offers a unique opportunity to deepen and expand this practice across the advisory industry. At the same time, it promotes much-needed transparency and collaboration in how philanthropic assets are managed.”
An expert panel has been appointed to assess submissions and guide the selection process: Dame Caroline Mason CBE (CEO, Esmée Fairbairn Foundation); Abhilash Mudaliar (Managing Director, Grey Area Partners); Craig North (Executive Director, Firesticks).
We see this challenge as a crucial step in encouraging the broader philanthropic sector to align investments with values
The shortlisted proposals will be presented at the Endowments for Impact Town Hall in Sydney on March 27, as part of the Impact Investment Summit. Following a rigorous evaluation process, the selected finalists are:
- Argus Advisory
- Australian Impact Investments
- Ethinvest
- Evans & Partners
- Koda Capital – Australian Communities Foundation’s investment advisor
- LGT Crestone
To stay updated or register interest in attending the Town Hall event, visit Endowments for Impact Challenge.
