January 2, 2013, 10:52 am
In an interview with Jacqueline Novogratz, chief executive of the Acumen Fund,?The Wall Street Journal?reports that ?impact investing? works best when it combines market-based approaches with a social-enterprise focus.
By making investments in areas of need, philanthropists can help set up companies that recycle their profits and eventually help them grow into their charitable missions.
?We have found that market-based approaches alone aren?t the answer and neither are charitable funds alone, which aren?t always sustainable and can create dependence,? says Ms. Novogratz.
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