Donors and prospective donors are becoming more aware of and attuned to social investing. This trend has manifested in such forms as putting money into investment vehicles that support worthwhile causes or trying to dictate where or how their donations are used.
The book “The Complete Idiot’s Guide to Giving Back” offers a wide range of information to people considering concentrating investments in socially responsible investments (SRIs). Although the information is intended for those who wish to contribute money, knowing what is on the mind of supporters could be helpful to nonprofit managers.
Regarding socially responsible funding, the book offers the following tips:
- Identify your financial needs. How much can you afford to invest? How much can you risk losing?
- Identify and prioritize your social values. Think about what is most important to you in terms of causes and values. Knowing where you will and will not compromise is helpful in the investment selection process.
- Understand and examine social screens. Understand the negative and positive social screens that financial management companies use to review corporate report cards on social issues. Request prospectuses from a few possible investment candidates and compare them.
- Make your selection. After you have completed your self-assessment and an assessment of various socially responsible funds, choose the fund that most closely matches your financial and social goals.