Charity investing 'becoming more efficient'

Although the recession caused a decline in charitable donations on both sides of the Atlantic, the financial crisis has also had some positive effects on the socially responsible investment sector.

This is according to the Wall Street Journal, which notes that outright giving is now being replaced by charity investing in many situations, causing the spirit of philanthropy to become ’more efficient and entrepreneurial’.

According to the publication, wealthy people are still looking to make social investments, but many are now adopting a more ’hands-on approach’ and are keen to see a significant return on their money.

In addition, the economic crisis has made philanthropists less reluctant to consider alternative methods of supporting charities with their investments.

’We expect the market for alternative investment to increase over the coming years as a more entrepreneurial approach to charity is adopted,’ Mike Packman of the Charities Aid Foundation (CAF) told the newspaper.

A report published by the CAF and the National Council for Voluntary Organisations in September revealed that charitable giving in the UK declined by 11 per cent, or £1.3 billion, this year.
ADNFCR-2318-ID-19495311-ADNFCR