How to Help Your DAF Clients Maximise Their Charitable Impact Through Impact Investing
When your clients establish a donor-advised fund (DAF), they set aside philanthropic capital to be granted to charities over time. However, even before grants are made, there are immediate opportunities to drive positive impact through DAF assets. DAF donors can begin making a difference immediately by investing their DAF funds in strategies that deliver measurable social and environmental impact — alongside financial return.
The impact investing market is growing rapidly. According to the Global Impact Investing Network (GIIN), the market now exceeds $1.5 trillion USD. In a recent survey, State of the Market 2024, most impact investors reported that their portfolios met or outperformed expectations for both financial performance and measurable impact.
NPT UK offers a selection of impact investment options that allow your clients to align their charitable assets with their values from day one. These investments are designed to generate both positive societal outcomes and financial returns, enabling donors to support innovation, sustainability, and long-term solutions to global challenges.
DAF investment options include ESG-focused funds that avoid companies with negative externalities and actively invest in those promoting environmental sustainability, social equity, and sound governance. For clients who wish to focus on specific issues, your client can also recommend investments into thematic impact funds.
These strategies are targeted toward particular social or environmental priorities, such as climate change, gender equality, or the UN Sustainable Development Goals and enable donors to support measurable progress in the areas they care about most. In addition, for clients with DAF accounts of £500 million or more, they may recommend dedicated impact managers to manage the DAF assets on a bespoke investment mandate, ensuring their philanthropic capital supports change in the way that matters most to them.
To find out more about how DAF donors can make impact investments, contact us.
About the Author
Natalie Pinon is Executive Director, Development at NPT UK. She has over 15 years of experience working with philanthropists and impact investors to manage their giving.
NPT UK does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.
NPT UK is not affiliated with any of the organisations described herein, and the inclusion of any organisation in this material should not be considered an endorsement by NPT UK of such organisation, or its services or products.
