These Funds Aim to Double Your Impact
Kiplinger's Personal Finance|March 2022
A growing number of funds donate directly to causes you might care about. Are they good investments?
ELLEN KENNEDY

YOU MAY HAVE NOTICED A FLURRY OF new investing products that link sustainably themed funds with donations to nonprofit groups, from the NAACP to the National Wildlife Federation to the Susan G. Komen Foundation. But before you invest in a mutual or exchange-traded fund tied to your favorite charity, make sure that it fits within your portfolio, meets your investment goals and truly delivers a benefit to the nonprofit group with which it partners.

When comparing these funds with competitors, “consider the fund donation to be the cherry on top, not the main driver of the decision,” says Jon Hale, global head of sustainability for investment research firm Morningstar. “Don’t be seduced into a fund that doesn’t further your financial goals,” he says.

And look beyond a fund’s donation to measure impact. Start by taking a hard look at its management company. Does it actively partner with the nonprofit group it benefits to bring about change? Is it voting shareholder proxies and filing shareholder resolutions to further the nonprofit’s cause? “ESG investing alone doesn’t create concrete, real-world impact,” says Leslie Samuelrich, president of Green Century Capital Management. “You need to pick funds that do shareholder advocacy.”

The concept of working hand-in-glove with nonprofits isn’t completely novel. Consider GREEN CENTURY BALANCED FUND (SYMBOL GCBLX), a member of the Kiplinger ESG 20, the list of our favorite stocks and funds with a focus on environmental, social and governance issues. Fund sponsor Green Century is owned by several nonprofit groups around the U.S., and its profits from fees support their environmental and public health goals.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM KIPLINGER'S PERSONAL FINANCEView All

WHY EVERYONE IS TALKING ABOUT NFTs

Non-fungible tokens are unique digital properties that use blockchain technology. Our FAQ will help you understand what all the buzz is about.

7 mins read
Kiplinger's Personal Finance
May 2022

Subdued Stock Returns Ahead

This well-known strategist says dividends are a bright spot in an otherwise muted market.

5 mins read
Kiplinger's Personal Finance
May 2022

Why Bonds Belong in Your Portfolio

STREET SMART

5 mins read
Kiplinger's Personal Finance
May 2022

WHEN CAN YOU GET A DEAL ON A CAR AGAIN?

Low inventories mean it’s hard to haggle on price, but you can still negotiate on financing.

3 mins read
Kiplinger's Personal Finance
May 2022

Weathering the Market's Turns

Our favorite actively managed funds delivered mixed results, proving that portfolio diversification matters over the course of a market cycle.

10+ mins read
Kiplinger's Personal Finance
May 2022

The Lowdown on Living Trusts

A trust can solve a lot of problems. But like all tools, it can also be misused.

10+ mins read
Kiplinger's Personal Finance
May 2022

Our Picks Struggle Along With the Market

THE KIPLINGER ESG 20 UPDATE | After a bullish 2021 for stocks with impressive ESG credentials, a pullback is under way.

2 mins read
Kiplinger's Personal Finance
May 2022

How to Open a Brokerage Account

Investing can be fun, but you need a brokerage account to do it. Fortunately, it’s easy to get started.

5 mins read
Kiplinger's Personal Finance
May 2022

Talking Money With Your Spouse

MONEY SMART WOMEN

3 mins read
Kiplinger's Personal Finance
May 2022

Start the Elder Care Conversation

LIVING IN RETIREMENT | The communication gap between parents and their adult kids is stunning.

3 mins read
Kiplinger's Personal Finance
May 2022
RELATED STORIES

HARRY'S DUNCE CAP!

Meghan makes him crack the books so she can run for prez

2 mins read
National Enquirer
March 21, 2022

THE GRIEF NEVER ENDS

Sybrina Fulton, who lost her son Trayvon Martin ten years ago this month, found her painful place in American history.

10+ mins read
New York magazine
January 31 - February 13, 2022

The Black Family in the Age of Mass Incarceration: Part VI-IX

In saving the sacred cow, those whose lives depend on dead animals are being robbed of their livelihood.

10+ mins read
The Atlantic
October 2015

The Black Family in the Age of Mass Incarceration: Part III-V

Two years after being named NBPA president, the Clippers guard dishes for the first time on Michele Roberts, Donald Sterling and the players looming battle with owners. (Hint: They want revenge.)

10+ mins read
The Atlantic
October 2015

HARRY ‘HE'S NOT HAPPY'

As a former actor, the Duchess of Sussex, 40, belongs on the stage. It seems her husband, however, is not so at home in front of an audience.

1 min read
WOMAN'S OWN
March 21, 2022

HELLO, HOLLYWOOD!

The Sussexes seem quite at home among the stars of Tinseltown

5 mins read
YOU South Africa
17 March 2022

For Trump's appointees, judgment day comes ever nearer

The growing gap between what the six conservative judges say and do threatens to ruin the court’s legitimacy

3 mins read
The Guardian Weekly
December 10, 2021

Blue Ivy A STAR in the MAKING

BEYONCÉ AND JAY-Z’S ELDEST CHILD IS ALREADY MAKING HER MARK ON THE MUSIC WORLD

2 mins read
WHO
April 5, 2021

LA MARCHA SOBRE WASHINGTON Y LOS DERECHOS CIVILES - UNA LUCHA INACABADA

En el tercer y último año del mandato de John F. Kennedy como presidente de Estados Unidos, el movimiento por los derechos de los afroamericanos vivió un momento cumbre de la mano de Martin Luther King: una manifestación icónica e histórica que alumbró grandes esperanzas de un cambio político que trajera por fin la igualdad racial.

10+ mins read
Muy Historia
Issue 125