Category: James Lustig

What is Impact Investing?

On November 21, 2019

Investors have the power to improve the world and turn a profit at the same time, they merely need to find the right methods for doing so. Impact investing is one such technique, one that is growing in popularity as more and more people take an interest in corporate responsibility.

How it Works

Impact investing is an investment strategy that focuses on businesses that have a positive impact on the world. Investors look for companies or small businesses that have good environmental policies, provide opportunities to underprivileged communities, or offer other benefits to society. However, they still also look for businesses that can turn a profit.

Both aspects are important because companies need to make money and stay in business in order to provide societal benefits. Investors who turn a profit can dedicate even more money to impact investing or general philanthropy. A talented investor can turn impact investing into a virtuous cycle that provides both social and financial benefits to everyone.

Myths and Misconceptions

There are quite a few myths surrounding income investing. Many of them deal with the potential for profits. For example, some investors believe that impact investing necessarily has lower rates of return than other methods. That is not the case. Investors have reported internal rates of return as high as 34% on their investments, which demonstrates the potential for profit.

Other investors worry that they will need to tie their money down for long periods to see a reasonable return. The average holding period for income investors is roughly five years, which is on par with that of venture capital firms. Investors can expect a reasonably rapid return on their investment as long as they choose their investments wisely.

The Results of Impact Investing

Impact investing really can make a big difference for a community. Businesses that operate in developing nations often need relatively small investments of capital in order to thrive. Those that get the investments provide livelihoods for their workers, who can go on to spend their wages in the local economy. That fuels more growth and encourages development.

Impact investors can also encourage companies to focus on protecting the environment, such as by providing alternative jobs to people who work in destructive industries. Impact investing is getting more popular over time, so it is likely that the positive impact will likewise continue to increase.

Exploiting Myths About Philanthropy

By Jimmy Lustig

On October 14, 2019

In Blog, James Lustig, Jimmy Lustig

Philanthropy is one of the most important parts of an American altruistic culture. However, it is also one of the most misunderstood aspects. The American understanding of philanthropy focuses on big gifts from single donors and obscures the actions of people who work from the ground up. This distorted focus encourages charitable organizations to approach giving and development in ways that arguably do not work.

American media love a big story about donations from a single person. Pointing to figures like Andrew Carnegie, Bill Gates, or Julius Rosenwald is an easy, uncomplicated story to tell. It also feels good to know that people who have made a lot of money haven’t forgotten about those who have very little. These stories make great morality tales and the men behind the donations really do make a big difference.

However, focusing on large donations from the very wealthy is not necessarily efficient. The truth is, plenty of people who live outside of the 1% give small donations that can really add up. Whether those donations come in the form of money, time or donated labor, they are all of value. For example, college students and recent graduates don’t always have a lot of money to give, but they may be able to work an internship or donate time in the development office. Cultivating those relationships can mean more donations down the line. It can also be a great way to develop new talent for the organization.

It’s also important to understand those small donations can add up. A thriving community that donates regularly can actually be a better source of donation income than a wealthy, fickle donor. Evidence for this can be seen in the Latinx community, where donations to organizations like churches and mutualists are common.

Many nonprofits also neglect to understand the data around giving. Though most Americans donate to charity annually, they do not necessarily give to the same organizations every year. Organizations also tend to believe that women give less than men, and this is often untrue. Data shows that, today, women are the higher source of income for up to two-thirds of American families. Many women are also large donors. People like Sheila Johnson and Oprah Winfrey are often left out of conversations about giving, but they give millions annually to a number of causes.

No matter the common myths that are debunked around philanthropy, the most important piece of knowledge to take away from charitable giving is that any amount, large or small, can make a difference.

Suggestions for a Company Volunteer Day

By Jimmy Lustig

On September 23, 2019

In Blog, James Lustig, Jimmy Lustig

Companies put a great deal of effort strengthening teamwork skills in an effort to make the work environment a better place. While there are numerous activities that can be done in the actual workplace to improve this, volunteer work is one of the best options. Having a company volunteer day not only gives workers the opportunity to give back to the local community in which they live but it can strengthen their bonds with each other as well. There are a wide variety of different company volunteers that can be held.

Food Banks provide the perfect opportunity for companies to give back to those in need of food to feed their families. Local food banks are in constant need of volunteers to help sort, package, cook, and serve local community members. Taking a weekend to lend a hand to those who are in need of food not only helps the hungry but is an excellent morale boost. Volunteering at a food bank also can provide employees with a sense of the scope and severity of hunger in their neighborhood, leading them to live a more sustainable life and produce less food waste.

Taking the time to spruce up and clean a local neighborhood or park is another great way to host a company volunteer day. This would also serve as an excellent team-building activity for the workers. Whether it be collecting litter, planting new trees, or helping to paint a community building, there are many things that can be done to improve the community that you live in.

Hosting a drive to help collect items such as backpacks or clothes for children at the beginning of a school year is also another wonderful company volunteer platform. While it doesn’t necessarily have to be these particular items being collected at the drive it could be something that your local community is in dire need of. During emergencies, many companies host a local blood drive when there is a shortage. Drives are a perfect way to rally the company together for a good cause. This is also a great opportunity for employees to contribute by bringing in items if they are unable to attend the actual volunteer event.

If these suggestions don’t seem to fit the bill for your particular company, take the time to meet together and let employees decide on a volunteer activity. Have an open discussion with the team to see what means the most to them right now, and make plans to form a company volunteer day. This type of volunteer work can boost morale and help to build leadership skills while building a sense of altruism.

How to Encourage Your Employees to Volunteer

By Jimmy Lustig

On September 17, 2019

In Blog, James Lustig, Jimmy Lustig

Of late, corporate social responsibility (CSR) and the broad concept of philanthropy have gained increased attention where businesses commit themselves to give back to society. The success of CSR projects depends on how well-coordinated they are. To increase the success of charity projects, companies should endeavor to involve their workers by encouraging them to volunteer in various ways.

Making giving a corporate culture

The art of giving can be enforced within your company by making charity a corporate value and internal culture. Employees joining your company will be highly likely to adopt such a culture and commit themselves to live by it. Besides, businesses that have incorporated the culture of giving in their internal values stand a better chance of attracting employees that have a passion for philanthropy.

Allocating responsibilities

To win the hearts of your employees towards giving to charity, you should endeavor to allocate related responsibilities to workers who have a passion for CSR. Once you identify employees who are committed to serving society through charity, giving them an opportunity to organize and coordinate the fulfillment of the CSR projects cements their commitments.

Recognizing employees’ dedication

Employees who have dedicated themselves to fulfilling charity projects that are organized internally by your company should be appreciated and recognized. Recognizing the top participants in philanthropy encourages more workers to show commitment to similar projects in the future. Such recognition can be in the form of giving workers certificates of participation or even branded attire that recognizes their philanthropic efforts.

Showing commitment right from the top

Employees are highly likely to follow suit the foundations laid within the workplace by the senior managers. The entire C-suit structure of your company, including the president, Chief Executive Officer, and other senior managers, should show commitment by attending CSR projects. Whereas such projects should not be made mandatory for other employees, the senior management will generally serve as a role model and encourage employee participation.

Making CSR fun and attractive

The last incentive that can attract your employees’ participation in charity projects is by making the projects fun. Creating teams that compete and win prizes during the project brings even the workers who have no passion for philanthropy on board. Pictures and videos of the event can also be published on the company’s social media platforms as a way of fronting the workers to the market and showing their dedication.