Shifting the Prism: Karyn Polak on Impact Investing and Doing Good with Your Money

Welcome back to Don’t Retire… Graduate! In today’s episode, we’re diving into the world of values-driven finance and social impact investing—a topic that blends doing well financially with doing good in the world. I’m joined in the studio by Karyn Polak, founder and Chief Activator of Shift the Prism. Karyn is a lawyer by training and a passionate advocate for equity and inclusion through finance. With a career spanning major law firms, financial institutions like Citigroup, PNC, and Transamerica, and now her own advisory work, Karyn is on a mission to mobilize capital for the greater good, investing for people, planet, and place.

Karyn and I had an engaging conversation about the often-blurry line between philanthropy and impact investing. We talked through the realities of working for “big finance” on Wall Street and the motivations that drive individuals and communities to use their money as a tool for positive change. Karyn shared insights about how the large, profit-driven financial institutions can sometimes disconnect from the communities they’re meant to serve, and why it matters where “your money sleeps at night.” We discussed the barriers Main Street investors face in navigating both traditional and alternative investments, the rise of crowdfunding, and the crucial differences between philanthropic giving and investment for social return.

We also addressed the challenges posed by regulation and compliance, how most advisors are limited in recommending private impact opportunities, and why it's so important for people to ask the right questions about where their dollars go—even when working with community foundations or donor-advised funds. Karyn outlined practical steps for everyday investors interested in creating both wealth and societal impact, introduced valuable resources for further exploration, and spoke from the heart about her career transition from big law and finance to social entrepreneurship.

Karyn concluded by sharing her “why”: the belief that everyone deserves access and opportunity, and the desire to see the real humans behind the numbers. If you’ve ever wondered how to align your money with your values—or how to create lasting impact while building your own financial independence—this episode is a must-listen.

5 Key Takeaways:

1. Understanding the Spectrum: There’s a world of possibilities between pure philanthropy (giving money away) and profit-maximizing investment. Investors can aim for both financial return and social good, using vehicles like community banks, impact funds, and recoverable grants.

2. Where Your Money Sleeps Matters: Where you choose to keep your money—whether in a big bank or a community institution—can profoundly affect the local community. Community banks use deposits to support local businesses, whereas large institutions often circulate funds globally.

3. The Power of Crowdfunding: Recent innovations in crowdfunding allow individuals to invest in local businesses and projects, often with modest amounts, blurring the lines between customer and investor and increasing neighborhood-level impact.

4. Ask the Right Questions (and Resources to Help): Investors need to be proactive—ask community foundations and donor-advised funds how their dollars are invested. Resources like As You Sow, US SIF, and Invest for Better can empower you with knowledge and confidence.

5. Align Risk, Return, and Impact: When evaluating any investment, consider not only the traditional financial return and risk but also the social and environmental impact. The most sustainable companies manage all three—benefiting investors and society alike.

Join us and get inspired to use your finances as a force for positive change—without sacrificing your own financial goals. As always, please subscribe, rate, and share Don’t Retire… Graduate! with your friends and family, and let’s keep transforming the way we think about retirement, purpose, and impact.

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