Case Study: Paul Ramsay Foundation’s Total Impact Approach

The Australian Charities and Not-for-profits Commission’s (ACNC) latest Australian Charities Report states that charity assets now stand at $422 billion (Australian Charities Report; 9th edition). If a fraction of these assets are invested in ways which contribute to solutions to society and the environment, then Australia would make significant strides in improving outcomes for people across the nation.

This is the concept behind a ‘total impact approach’ in which charitable foundations consider all the ways in which they can create a positive impact – as opposed to targeting impact through a small percentage of total assets for grant making. Heron Foundation in the United States is credited by many as pioneering this model when it made the decision to commit 100% of its assets for mission in 2012; the practice in Australia, however, remains nascent relative to many global peers.

In December 2023, the Paul Ramsey Foundation (PRF) published an Insights Paper that explores PRF’s responsible investing across whole of Balance Sheet, and the process, learnings, and future considerations captured in amending PRF’s Investment Policy Statement.