Philanthropic organisations and impact investors call on policymakers to enable more investments for impact

On the occasion of the European Day of Foundations and Donors, Philea and Impact Europe published recommendations for national and EU policymakers to enable more impact investments and collaboration opportunities.

Multiple actors are needed to effectively address complex societal challenges. This means making the most of private, public and philanthropic resources. When undertaken in collaboration with public and philanthropic actors, impact investing approaches can lead to lasting social and environmental benefits through co-investing and blended finance approaches.

Building on the Philanthropy Manifesto and Impact Manifesto, Philea and Impact Europe launched the recommendations in the European Parliament, and call on policymakers to help bolster this effort by:  

1. Enabling impact investing at the programme level
2. Developing a co-investment facility under the InvestEU financial programme
3. Facilitating impact investing and mission related investments at the endowment level
4. Integrating philanthropy from the start in the next Multi-Annual Financial Framework

Across Europe, philanthropic organisations have started engaging in impact investing, including supporting social economy actors and start-ups. However, restrictive laws often hinder these efforts, as evidenced by Philea’s legal analysis.

“There is huge untapped potential”, according to Roberta Bosurgi, CEO of Impact Europe, referring to the Accelerating Impact Report which includes examples of foundations using loans and equity to fund social enterprises. “Philanthropic organisations are crucial to leverage the full spectrum of capital to achieve social change”.

To achieve and generate positive social and environmental impact, the traditional mission of the philanthropic organisations can be strengthened by deploying capital – whether through programme activities or endowment investments.

“Philanthropic organisations could do more if enabling frameworks and innovative tools were available as outlined in the Social Economy Action Plan,” stated Delphine Moralis, CEO of Philea.

Download the full recommendations below.