Tag: investing

Robert Downey Jr.’s Latest Philanthropic Investment

On February 17, 2021

In Blog, James Lustig, Jimmy Lustig, Philanthropy, Uncategorized

Iron Man star Robert Downey Jr. has been covertly making headways into the world of environmental research the last few years. In 2019, Downey Jr. founded the Footprint Coalition, an organization geared toward supporting scientific research and sustainability technologies. Earlier this week, Downey Jr. revealed a new arm of the Footprint Coalition at the Davos Agenda of the World Economic Forum: Footprint Coalition Ventures. Downey Jr. explains that Footprint Coalition Ventures will be the investment branch of the organization and that its mission will be seeking out and supporting companies that research sustainability.

Downey Jr. went into further detail on the goals of Footprint Coalition Ventures in an interview with reporters from Fast Company. Downey Jr. explains that creating Footprint Coalition Ventures will put the Footprint Coalition in a better position to help answer vital sustainability questions. Continuing, Downey Jr. says that Footprint Coalition Ventures have two types of funds, one for preliminary investments and the other for subsequent investment opportunities. Furthermore, the company follows a rolling fund investment schedule. In this manner, investors will be able transfer funds to companies on a quarterly basis, making Footprint Coalition Ventures more accessible to different kinds of investors. Downey Jr. adds that such a schedule opens the company to as wide a pool of investors as possible.

Footprint Coalition Ventures focuses on funding companies that research in six areas, including food and agriculture, energy, education, and advanced environmental solutions. Thus far, five companies, including Arcadia Earth and Cloud Paper, have received funds from Footprint Coalition Ventures.

Looking to the future, Downey Jr. says that he plans on using his status as a celebrity to raise awareness on the Footprint Coalition and sustainability ventures in general. While many other celebrities who are involved in similar organizations tend to keep a low public profile, Downey Jr. feels that it is his responsibility to use his platform to influence others. Jonathan Schulhof, who runs the day-to-day business of Footprint Coalition Ventures, points out that the company has used a YouTube video of Downey Jr. detailing the differences between plastic and polyhydroxyalkanoate, a new type of sustainable polymer invented by RWDC Industries, to help woo investors. Schulhof continues that such content can inspire audiences by making something extraordinary seem commonplace.

Five Great Books About Philanthropy in 2020

By Jimmy Lustig

On December 15, 2020

In Blog, James Lustig, Jimmy Lustig, Philanthropy, Uncategorized

With so many options out there, how – and why – should people consider giving? The five books below provide many answers to these and other questions, making for fascinating reading, both inspirational and impactful.

One of the best guides to the giving process is the traditional Inspired Philanthropy: Your Step-by-Step Guide to Creating a Giving Plan and Leaving a Legacy, by Tracy Gary. Efficient covers everything from the basics of plan making, working with advisors, the right questions to ask non-profits, and much more. The inclusion of worksheets, resource lists, and descriptions of planning tools is beneficial.

The Promise of a Pencil, by Adam Braun, tells the story of how one man’s actions impacted thousands of lives globally. After encountering a begging child and starting with only $25, Braun built an organization that has helped build over 250 schools worldwide. Inspirational and uplifting, if ever there was an argument for the power of giving, this is it.

In The Soul of Money: Reclaiming the Wealth of Our Inner Resources, Lynne Twist offers positive proof that changing our attitudes towards earning and spending money can make our lives more meaningful and fulfilling. Challenging everyday assumptions about society’s views of money, the author illustrates her journey from conspicuous consumer to non-profit activist in an honest, no-punches-pulled way.

Sharna Goldseker and Michael Moody bring a fresh perspective in Generation Impact: How Next Gen Donors Are Revolutionizing Giving. Moving between first-hand accounts and analysis of a new class of doner’s work, the book shows the impact of young rising stars of philanthropy in disrupting traditional giving models and creating entirely fresh approaches to the field.

Another disruptive approach to giving is Impact Investing: Transforming How We Make Money While Making a Difference by Antony Bugg-Levine and Jed Emerson. The new field of impact investing is thoroughly explained, showing how it’s possible to “blend” investment success with positive change.

This year, perhaps more than in most, it’s essential to consider how a charitable contribution can positively impact peoples’ lives. The wisdom and practical advice that abound in the five volumes discussed will hopefully inspire and energize in equal measure.

What is Impact Investing?

By Jimmy Lustig

On November 21, 2019

In Blog, James Lustig, Jimmy Lustig

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.