Sustainable Fundraising Practices

New paper, "Sustainable Investing: Evidence From the Field" (with Tom Gosling and Dirk Jenter). We survey 509 equity portfolio managers, of both traditional and sustainable funds, on whether, why, and how they incorporate firms’ environmental and social performance into investment decisions. 1. Both traditional and sustainable funds rank ES last out of six drivers of long-term value: below strategy, operational performance, governance, culture, and capital structure in that order. Clients interested in financial returns should not overweight a fund's ES credentials above its ability to assess these other factors. 2. This low relative ranking doesn't mean that ES is immaterial in absolute terms. Indeed, 73% of sustainable and even 45% of traditional investors expect ES leaders to deliver positive alpha. Unexpectedly, the most popular reason is that ES is a signal for other important value drivers rather than mattering directly. As I wrote in "The End of ESG", ES is "extremely important and nothing special". 3. ES performance influences stock selection, engagement, and voting for 77% of investors (66% traditional, 91% sustainable). Calls to "ban ES" make little sense as many traditional investors voluntarily incorporate it. 4. Only 24% of traditional and 30% of sustainable investors would sacrificing even 1bp of annual return for ES, citing fiduciary duty concerns. Policymakers and the public need to have realistic expectations of the asset management industry's likely ES impact. It will incorporate financially material ES factors, but it won't subsidize ES investments that offer below-market returns. That’s not because fund managers are greenwashing, but because they are fund managers. Their fiduciary duty is to their clients, whose goals are often financial. 5. But non-financial goals can be pursued through ES constraints such as fund mandates. 71% (61% traditional, 84% sustainable) report that ES constraints required them to make different investment decisions. These constraints sometimes reduced the very ES impact they aim to achieve, for example by preventing funds from investing in ES laggards whose performance they could have improved. 6. Overall, traditional and sustainable investors are more similar than commonly believed. Sustainable investors recognise fiduciary duty and are unwilling to sacrifice financial returns for ES. Traditional investors view ES as material and face ES constraints (firmwide policies, client wishes) preventing investment in "unsustainable" stocks. While some clients are attracted by sustainability labels, many traditional funds invest sustainably and many sustainable ones don't - and chasing a label can prevent true sustainable investing. Big thanks to the those who filled in the survey, beta-tested it, distributed it, and were interviewed. We hope that by directly involving practitioners, we can increase the relevance of academic research. https://lnkd.in/eGzRzE5t

Towards Sustainable Growth: How Saudi Arabia and Egypt Are Reshaping the Future of the Regional Economy 🇸🇦 The Middle East is experiencing a remarkable transformation in economic cooperation and foreign investment, with #SaudiArabia and #Egypt emerging as key players in the region. 🇪🇬 🔅 During the recent official visit of Crown Prince Mohammed bin Salman to Egypt, significant agreements were signed, solidifying their strategic partnership and boosting confidence in the region's future: ✔️ Major Investment Agreements: Saudi Arabia and Egypt entered into $7.7 billion worth of agreements, targeting renewable energy, green hydrogen, and e-commerce, essential sectors for sustainable development. ✔️ Electric Vehicle Production: A joint venture was launched to manufacture electric vehicles in Egypt, positioning the country as a hub for local and international markets, aligned with the green economy goals. ✔️ Public Investment Fund #PIF Commitment: Saudi Arabia's Public Investment Fund announced a $5 billion investment in Egypt, marking a significant milestone in regional economic growth. ✔️ Investment Protection Agreement: In October 2024, Egypt and Saudi Arabia signed an agreement to protect joint investments, ensuring a secure and stable environment for investors from both nations, further enhancing the investment climate and encouraging more economic collaboration. 🔅 This growing collaboration reflects the shared vision of economic stability, sustainability, and prosperity, creating a foundation for lasting success and inspiring confidence in the global investment community. #Leadership #EconomicGrowth #Innovation #Sustainability #FutureOfWork #BusinessDevelopment #StrategicPartnership #GlobalBusiness #GreenEconomy #MiddleEast #RenewableEnergy #ElectricVehicles صندوق الاستثمارات العامة

Must-read piece on Responsible AI for Philanthropy published on the Center for Effective Philanthropy blog by Rachel Kimber, MPA, MS Joanna Drew Ravit Dotan, PhD Mark Greer II, MBA, CAP® It is a call to action to philanthropy to invest in responsible AI adoption for the social sector. "We are all individually called to experiment and learn about AI, warts and all, but funding is the critical element to ensure that AI is harnessed for good. And we all know nonprofit infrastructure is perennially and abysmally under-funded. So, take this as a call-to-action, dear philanthropic partners, as your role is crucial in moving the sector forward and, equally as crucial, in helping with responsible AI development and adoption." Includes four concepts for a framework for philanthropy to spearhead a collaborative approach to developing and adopting responsible AI. * Funders should support social sector in adopting the tools, but also use the tools themselves in a responsible, innovative way. * Invest in solutions to help the social sector and civil society access innovative technology, build capacity to manage its adoption and usage, and to share knowledge across the sector to improve the efficacy of the tools. * Create collaborative learning playing fields to help develop governance and guardrails to accelerate the responsible use of AI. * Invest in equitable innovation by supporting research and advocacy that diversifies AI training data and promotes transparency in AI decision-making processes. Beyond protection, philanthropy should also focus on supporting AI applications that directly benefit vulnerable communities. (Examples: healthcare AI that accounts for diverse medical needs and historical health disparities, AI-driven environmental justice initiatives that help monitor and address pollution in marginalized areas, and AI tools that aid in equitable resource distribution in areas like education, housing, and business development.) https://lnkd.in/guDPQFkT

📢 The Indo-German Green Hydrogen Roadmap outlines a collaborative approach between India and Germany to accelerate the development of a global green hydrogen economy. This partnership leverages both countries' strengths, with India's vast renewable energy potential and Germany's technological expertise. Key Focus Areas: 1️⃣ Identifying and promoting investment opportunities in green hydrogen and its derivatives, focusing on hard-to-abate industries (steel, refineries, fertilizers), transport (shipping, aviation, heavy-duty trucking), and stationary power applications. Emphasis on developing regional hubs and facilitating large-scale, export-oriented green hydrogen production, including green ammonia terminals in India for export to Germany. 2️⃣ Supporting the global trade of green hydrogen and its derivatives, facilitating bilateral offtake agreements, promoting green hydrogen trading platforms, and exploring government-backed auction mechanisms like H2Global and the EU Green Hydrogen Bank. 3️⃣ Promoting joint research and development projects across the entire green hydrogen value chain, focusing on storage, transportation, and integrated end-use applications. Collaboration between research institutions and companies from both countries will be encouraged through suitable funding programs. 4️⃣ Sharing knowledge and best practices in regulations, standards, and safety procedures for green hydrogen. Developing voluntary, mutually recognized standards and interoperable certification schemes to ensure safe, reliable, and sustainable trade. 5️⃣ Workforce development and skill advancement for the green hydrogen sector, with training programs focused on practical, hands-on training for installers, project developers, and public decision-makers. Benefits of Collaboration: ✴ Accelerated development and deployment of green hydrogen technologies. ✴ Reduced reliance on fossil fuels and enhanced energy security. ✴ Creation of new economic opportunities and green jobs. ✴ Contribution to global climate goals and a sustainable energy future. ✴ Enhanced bilateral trade and investment between India and Germany. #GreenHydrogen #HydrogenEconomy #RenewableEnergy #India #Germany #Sustainability #EnergyTransition #InternationalCooperation #Decarbonization

The opportunity is not just in cross-border trade of green electrons, but also in green molecules. South East Asia is so rich in bio-resources. "The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project offers a compelling blueprint for how regional green energy trade can drive sustainable development. Launched in 2022, it marks South-east Asia’s first multilateral electricity trading framework, setting a precedent for cross-border collaboration in renewable energy. Under phase one, Singapore imported up to 100 megawatts of hydropower from Laos through Thailand and Malaysia. This project showcases the benefits of regional connectivity: Laos leverages its rich hydropower resources for economic growth, Singapore diversifies its energy supply and lowers its carbon emissions, while Thailand and Malaysia earn revenue by facilitating grid connections. If the negotiations to extend this four-nation power project succeed, energy trade could potentially double, with additional supply coming from Malaysia. The Laos-Vietnam Renewable Energy Cooperation, established in 2016 with the commissioning of the Xekaman 1 hydropower plant, highlights the potential of regional collaboration in green energy trade. By October 2023, Vietnam Electricity had signed 19 power purchase agreements to import over 2.6 gigawatts (GW) from 26 of Laos’ hydropower plants. This collaboration boosts Vietnam’s energy security and advances its renewable energy goals while promoting sustainable development in the region. Singapore is setting the momentum for more regional energy trade, with a goal to import around 6 GW of low-carbon electricity by 2035, up from the initial target of 4 GW. The Energy Market Authority has issued conditional approvals to 10 projects to import low-carbon electricity from Australia, Cambodia, Indonesia and Vietnam. Five projects were awarded conditional licences, marking a significant step toward enhanced regional energy connectivity." https://lnkd.in/gA2EtHwi

Investors who commit to ESG are performing on par. GPs and funds dedicated to ESG-aligned investments have seen exponential growth in the past decade. However, concerns about lower returns have held back this trend. But here's the truth: a PitchBook analysis of private fund data reveals that funds managed by firms committed to the Principles for Responsible Investment (PRI) perform just as well as their non-ESG-aligned counterparts. This challenges the belief that ESG investing hampers returns. The analysis focused on GPs who've committed to the PRI, a list of voluntary aspirations established in part by the United Nations. The findings showed that PRI signatories' funds performed equally well across various strategies, including private equity, venture capital, real estate, and more. Critics argue that considering environmental, social, and governance factors in investing can lead to lower returns. However, this analysis suggests otherwise. It provides valuable insights into how investors and funds dedicated to ESG principles fare compared to those who ignore ESG considerations. These findings debunk the myth that ESG investing sacrifices returns. It's time to challenge the perception that investing with ESG risk factors in mind hampers performance. Investors who prioritize ESG are not compromising on returns. They are demonstrating that sustainable and responsible investing can go hand in hand with financial success. This analysis contributes to the growing body of evidence supporting the value of ESG investing. Let's continue to embrace ESG principles and drive positive change while achieving financial goals. Together, we can make a difference in shaping a more sustainable and inclusive future 🌱

September to December is a *hot* period for nonprofit fundraising. Many foundations and donors are back to their desks after the summer and looking to make their closing funding rounds before the end of the year. If I were an advisor in your nonprofit organization, this is what I would suggest prioritizing in your fundraising plan from this month through the end of the year: 🫂 Curate Relationships Curating relationships with existing donors or key stakeholders is one of the most overlooked practices in fundraising. Only chasing new donors or funding opportunities goes at the expense of trust-nourishing and enthusiasm of those donors and stakeholders who are already "warmed up" about your work and mission. Don't make this mistake, and create space to strengthen the bonds with those who are already there. Think about personalized engagement and regular touchpoints to make them feel part of your mission and deepen their commitment to your cause. ⭐ Impact Storytelling Creating visibility around all the things your organization and your team have achieved throughout the year is a powerful avenue to leverage your commitment and attract the attention of donors and stakeholders ready to fund. Don’t be generic or conservative when it comes to showing the outputs, activities, results, community feedback, and transformations your work generated. Donors want to feel like they can make a tangible contribution to the end goal of your impact mission. Showing this to them in a compelling, story-based approach will help them understand what and why they are funding. 💰 Do Your Budget Know your number and make your financial plan clear. Prepare a budget that outlines your organization’s funding needs for the next 2 to 5 years. Identify the core areas that require sustained resources and ensure your strategy is aligned with long-term objectives. Create a strong narrative around why these areas need funding, how they will serve your impact goals, and why mobilizing resources into these areas will be foundational in securing sustainability and scalability to your work. 💥 Optimize Your Strategy You must have learned a lot in the past 9 months and got a lot of feedback, observations and lessons learned around your work. This is the perfect time to integrate the learnings into your overarching organizational strategic plan and fundraising strategy and adjust it according to the things you have now gained more clarity on, such as your new targets and goals. -------- Hey! I am Margherita, senior nonprofit consultant and advisor. I am open to working with nonprofit organizations in social justice and accelerating their development goals through fundraising, financial planning, organizational development, and operations. My fee model is equity-informed and open to accommodating all budgets. Contact me to learn more!

Last week, I watched a founder close a $4M seed round without a single traditional pitch meeting. No slide deck. No demo day. No "warm intro" network. When I asked how, their answer shocked me: "I started selling to VCs before I needed their money." This founders' contrarian approach is something I've now seen work 9 times in the last year: → They shared private monthly updates with target investors 8 months before fundraising → They solved investor objections before they became roadblocks → They created FOMO organically, not artificially Forget conventional fundraising wisdom. Here's what's actually working in 2025: 1. Reverse due diligence The most successful founders I've backed investigate VCs more thoroughly than VCs investigate them. They reject poor investor fit early. 2. Lead with constraints, not potential One founder explicitly showed how capital constraints were the ONLY thing preventing 5x growth. The math was undeniable. 3. Pre-fundraising data bridges The best raises happen when you've already shared bad news with investors and shown how you overcame it. Transparency beats perfection. 4. The silent round approach A founder I backed last month told only 7 investors they were raising. Each one felt specially selected. 5 submitted term sheets. Most controversial? The founders who are most successful at fundraising are often the least desperate for capital. They've built capital-efficient businesses with paths to profitability, making VC money accelerative, not necessary. What's the most unconventional fundraising strategy you've seen work? #startups #pitch #fundraising #founders

I sent out my email newsletter today. And I had no idea the title “don’t erase yourself; because it affects our data and AI” will come back with so many responses in the email. Seeing that it needs to be said, slowly and lovingly, I am pasting a snippet of my email letter here – for those who are not yet (and no pressure to join) of that newsletter. ********************* In the last 3 months, I have had 4-7 DMs or post-conference questions, asking whether they should ●  hide parts of their identity when writing to donors (and accordingly store in their data)? ●  avoid including pronouns in their email signature? ●  downplay where they are from, their accent, or how they show up? The question is a growing concern and, unfortunately, a familiar hesitation—wanting to be authentic and not offend anyone. Here is what I tell them: Do not erase yourself. Your identity is not a liability, it is proof of your existence. And sharing that authentically in your data and communications is a signal - of trust, transparency, and courage. When we hide essential pieces of who we are, especially in donor communications, we send a quiet but powerful message: that there's a "right" way to be in this sector—and that it doesn't include all of us. That authenticity should be edited out. But here is the thing you and I need to understand: our identity is not a reason for our privileges, nor is it a permission to suffer/cause harm. Our choices, however, are. For example, pronouns in your signature are not a distraction. They afford clarity. They are part of your commitment to make your spaces more inclusive—so that some identities don't always have to do the heavy lifting of explaining themselves. When you include yours, you help shift that burden. And that's authentic leadership. And your story, your voice, your lived experience – all add depth to your work and the relationships you build. Of course, there's nuance. If you are in a high-stakes conversation with a donor whose values you don't know well, it's okay to be thoughtful about how much personal detail to share. But thoughtfulness is different from self-erasure. And over time, we want to cultivate donor communities that value authenticity, not just polished narratives. We can't ignore this truth - now is the moment our histories will write how our choices meant showing up authentically—where you and I own, "This is who I am, and I lead from that place." Because when we do that, we create a culture where others—staff, board members, community partners—can do the same. And that is not just good philanthropy practice. That is liberation in action. And that affects our data and AI. So, my advice? Show up. Fully. Authentically. You are not too much. You are not too different. You are exactly the human our sector needs. #nonprofits #community

How Is Your Investment Strategy Embracing Sustainability? ➤ In today's world, where the call for sustainability is louder than ever, how are you weaving Environmental, Social, and Governance (ESG) factors into your investment strategy? ↳ Sustainable investing is more than a trend—it's a transformative approach reshaping the financial landscape. ↳ The United Nations' Principles for Responsible Investment (PRI) defines responsible investment as integrating ESG factors into investment decisions and active ownership. ↳ While terms like ESG, sustainable, socially responsible, and impact investing may seem interchangeable, they each carry unique nuances. 💡 For instance, Bridges Fund Management's 2015 study highlights a key difference: responsible investment focuses on mitigating risky ESG practices to protect value, while sustainable investment adopts progressive ESG practices to enhance value. ➤ Investment managers today are tasked with a delicate balance. They must consider the interests of shareholders, employees, customers, and communities while delivering both financial returns and social and environmental impact. ➤ There are five primary ESG investment approaches: 📌 Screening: This involves both negative and positive screening to select investments based on specific ESG criteria. 📌 ESG Integration: The most favored approach, as per the Schroeder's Institutional Investor Study 2021, involves incorporating ESG factors directly into the investment process. 📌 Thematic Investing: Focuses on themes such as renewable energy or social equity. 📌 Engagement (Active Ownership): Involves investors actively engaging with companies to influence their ESG practices. 📌 Impact Investing: Aims to generate measurable social and environmental impact alongside financial returns. → As we move toward a more sustainable future, investors are increasingly seeking strategies that balance risk management with the opportunity to generate strong long-term returns. → How is your investment strategy adapting to this evolving landscape? → Are you ready to embrace the potential of sustainable investing to make a meaningful impact?