Episode 176 - What to Know About Donor Advised Funds with Impact Foundation's Aimee Minnich and Jeff Johns
Jul 15, 2024
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Aimee Minnich and Jeff Johns are trailblazers in the Faith Driven Investor Movement with deep ties to the Impact Foundation. They discuss the power of donor-advised funds for aligning investments with faith-driven values. Aimee shares insights from her recent IRS testimony on regulatory changes impacting charitable giving. The duo highlights the transformative potential of impact investing and community-driven philanthropy, showcasing real-life success stories and innovative financial tools that create lasting change.
The Impact Foundation highlights the critical role of donor-advised funds in facilitating impactful investments aligned with charitable missions.
Innovative approaches in charitable giving, such as those employed by Impact Foundation, address regulatory challenges while maximizing social value and financial returns.
Deep dives
The Purpose of Impact Foundation
Impact Foundation serves as a unique resource in the realm of charitable giving, focusing on facilitating the effective use of donor-advised funds for kingdom-oriented investments. This foundation addresses a significant gap by allowing individuals with charitable capital to contribute to meaningful projects like hydroelectric dams in Honduras or solar installations in Southeast Asia. The foundation aims to mobilize over $1 trillion that is waiting to be given away from private foundations and donor-advised funds, enhancing the impact of these funds by aligning them with mission-driven investments. By focusing on specific sectors and opportunities, Impact Foundation strives to empower individuals to make a difference while managing wealth in accordance with their values.
Innovation in Charitable Giving
The podcast highlights the innovative spirit embodied by Impact Foundation, particularly in the context of donor-advised funds which have revolutionized the way charitable giving is executed. Historically, donor-advised funds have seen substantial growth since their introduction, enabling individuals to establish a charitable checking account where they can recommend grants and investments. The discussion emphasizes how Impact Foundation not only manages these funds but also actively supports investors who wish to engage in impact investing while ensuring compliance with regulations. This collaborative approach enables families to integrate their philanthropic efforts with sound financial investment practices.
Challenges and Opportunities in Impact Investing
The challenges surrounding impact investing are acknowledged, especially concerning the need for regulatory clarity and the proper alignment of charitable goals with investment returns. The representatives from Impact Foundation express concerns over proposed IRS rules that could affect the autonomy of donor-advised funds, revealing the complexities of navigating regulatory frameworks while maximizing impact. However, they remain optimistic about the evolution of charitable capital and the potential for innovative investment products that yield both financial returns and social value. Their shared experiences emphasize the importance of careful planning when deciding between charitable contributions and impact investments.
Real-Life Impact Stories
The podcast features compelling stories that encapsulate the real-world impact of the investments facilitated by Impact Foundation, particularly in developing regions like Uganda. One notable example is the financial support provided to motorcycle taxi drivers, enabling them to purchase their own motorcycles and secure a sustainable income. These investments help lift families out of poverty, demonstrating the effectiveness of capital when deployed judiciously for social good. Additionally, the foundation's involvement in film and media projects showcases its commitment to uplifting redemptive stories that foster community engagement and inspire positive change.
Richard and John check in on two of the key trailblazers of the Faith Driven Investor Movement, Aimee Minnich & Jeff Johns of The Impact Foundation, to learn how Donor Advised Funds (DAFs) can help investors who want to use their capital for God’s Kingdom.
The four of them discuss the power and necessity of impact investing, the history and mission of Impact Foundation, and the importance of innovation and entrepreneurship in the charitable sector.
Aimee also shares her recent experience testifying in front of legislators about rules surrounding donor-advised funds and gives practical next steps for those who want to get in the game with impact investing.
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