What Happens When Philanthropists Match Their Investments With Their Values?

Originally Published on June 24, 202 by Courtney Duchene for The Philadelphia Citizen

Nine local foundations and nonprofits are now investing a collective $400 million in funds that make money and do good. It’s a no-brainer that’s catching on.

The nonprofit Merchants Fund has given out more than $10 million in grants to small businesses facing financial hardship since 2007 as part of its mission to support small businesses and create a vibrant business community in Philadelphia — particularly one that is diverse, with small businesses owned by women, people of color and immigrants.

So it was with some surprise and dismay that TMF’s Executive Director Jill Fink realized, during a presentation in the fall of 2021, that her organization was investing its own money in ways completely antithetical to its mission. In particular, some of the millions of dollars in their endowment was being used to finance things like border detention facilities used to house immigrants the government is trying to deport.

“One of our priorities is to support businesses that are owned by immigrants. There’s a disconnect there,” says Fink, who was nominated for a 2025 Rad Award. “It was a real eye-opener.”

Like other grant-making organizations, The Merchants Fund pools donations and its endowment into stock market funds and other assets intended to ensure the nonprofit continues in perpetuity. And like other foundations, they had long been more concerned about how much growth TMF was getting out of its investments than about parsing exactly how the money was invested. Then Fink saw a presentation from Ty Thiele of Andorra, a financial advisory firm that helps institutions ensure their investments support businesses that have similar goals — or at least aren’t actively working against the nonprofit’s goals.

That presentation spurred The Merchants Fund to divest from companies that conflicted with their values and to adopt an investment strategy that considers what benefit they can have with their endowment, alongside the work they’re doing as a nonprofit. They’re now one of nine Philly nonprofits or foundations over the past three years that have shifted their investment strategy to match their values.

These organizations represent more than $400 million in assets under management, money that is now serving three purposes: growing their endowments, doing good and supporting the local economy. Read the full article here.

“We want an economy that works for all people,” says Diane Cornman-Levy, Chief Disruptor at WOMEN'S WAY. “People care about Philadelphia — the poorest city of the 10 largest cities. Well, what are we doing about it? Let’s drive more capital money to people who are trying to create a more inclusive and equitable economy in Philadelphia.”