Exploring impact investings emergence in the philanthropic sector

This chapter focuses on the integration of impact investing practices by the philanthropic sector. Different from other funders involved in impact investing, philanthropic organizations place a higher priority on allocating capital towards their social mission rather than capturing economic value. As these organizations have been relatively overlooked by management scholars, we provide an overview of the philanthropic sector, specifically introducing how different philanthropic organizations receive and allocate their capital. We then present how philanthropic organizations have become involved in impact investing and describe research at this intersection. Finally, we propose a research agenda that examines the nexus of philanthropy and impact investing at the individual, organizational, and institutional levels of analysis. In doing so, we show how the philanthropic sector is critical, yet understudied as a funder utilizing impact investing practices.