Is Philanthropy Dead?

In this week's newsletter, we are answering the question: Is impact investing the new philanthropy?

R.I.S.E. & Shine!

It's another great day to learn about investing for impact!

Happy Saturday ladies,

As leaders and entrepreneurs, we, as women, understand the power of money—not just as a currency, but as a tool for change.

For too long, traditional philanthropy has asked us to trust the system and donate blindly. What if we told you there is a way to put your money towards making a positive change, while also making you financial returns?

Welcome to impact investing!

Here at R.I.S.E. we are empowered women, educated and inquisitive, insistent on understanding where our hard-earned money is going, and how it is making an impact for ourselves and for the causes closest to our heart.

Philanthropy Is Making Way for Impact Investing

Old philanthropy operates on a system where funds are donated to causes with good intentions but with limited oversight on efficacy and sustainability. For smart businesswomen, this model is becoming outdated.

Enter impact investing, which serves as a bridge between philanthropy and traditional investing. Impact investing appeals to women who are both financially savvy and socially conscious, offering a more strategic and mutually beneficial way to bring about change.

Instead of asking if you know who you’re giving your money to, impact investing flips the script: it allows you to invest in causes you are passionate about, while giving you both a social and financial return you would not be able to see with a philanthropic donation.


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The More You Invest With Impact,
The More You Have to Give!

Impact investing reframes the conversation from a simple tax write-off: with impact investing, the money that grows can, in turn, be reinvested into another opportunity, creating a sustainable cycle of impact. The idea here is not just to give away wealth but to circulate it through ventures that reflect your values and vision for a better world.

So, is philanthropy dead? Not entirely, but for smart business women learning about impact investing, the traditional philanthropic model may seem like a relic of the past.

It's not that the desire to do good has diminished—far from it. Instead, we are thinking critically about where our money is going, and how it can be cycled through multiple causes for change, not just a one-time donation!


SUPERWOMAN SPOTLIGHT

Jenny Abramson

Jenny Abramson is the Founder & Managing Partner of Rethink Impact, a venture capital firm that invests in female leaders using technology to solve the world’s biggest problems in sectors like health, environmental sustainability, and education.

With a portfolio including Ellevest and Sempre Health, Abramson champions combining strong financial performance and significant social impact. She uses her extensive background in tech leadership and education reform to guide the next wave of socially conscious entrepreneurs.

Recognized as a visionary in impact investing, Abramson's influence extends to her board positions and speaking engagements, shaping the conversation on the power of purpose-driven investment.

FINANCE IN THE NEWS

This Week At a Glance

  • A Northwestern Mutual survey reveals that a higher percentage of Gen Z women feel confident in their financial readiness for retirement compared to women from previous generations.

  • The influence of the National Association of Realtors on American real estate may fall after a court fined it and two firms $1.8 billion for inflating commissions, potentially altering home buying and selling practices.

  • The Federal Reserve Bank of New York reports that credit card debt surged to a record $1.08 trillion with a steep rise in delinquencies.

  • A new survey from Goldman Sachs found that, “71% of Black women feel like they live paycheck to paycheck, compared to 63% of the general population.”

The Next Generation of Women is Changing How, and Why We Invest

It’s remarkable how the financial landscape has changed for women over the past 50 years, with many of us taking the helm as the key financial decision-makers. This is largely thanks to societal shifts such as marrying later, ascending to higher echelons in the corporate world, and significant inheritances. 

Now, the younger generation is pushing the envelope further, strategically aligning their investments with their personal values—championing social and economic justice initiatives and aiming for tangible impact over traditional charitable causes. 

A 2022 study by Bank of America found that, “88% of women prioritize creating their own legacy. The same study noted that next gen philanthropists are more than twice as likely to give via structured vehicles than those in previous generations.” In other words, they are crafting unique philanthropic paths with modern financial tools and exploring the rewarding terrain of impact investing and emerging assets with keen interest.

Next Week’s Sneak Peek:

Next week, we are covering why women are best suited for success in impact investing! 

@risethemovement

www.risethemovement.com

Regardless of whether you are scared to take the first step or you are ready to dive right in, there's an Investment strategy perfectly suited for you.
At R.I.S.E we are committed to guiding and supporting women investors at every stage of their investment journey. We believe the key to success lies in education, informed decision-making, and using our investments to make an impact.
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