Philanthropy exists in service of communities and the environment — and we enjoy generous tax concessions for precisely this reason. Yet for too long, the endowments of Australian trusts and foundations have been mired in outdated, unambitious investment frameworks that give insufficient attention to our purpose.
Increasingly, the sector recognises that our missions and values should shape not only our grant-making, but also our investments. For many foundations, making that shift requires the right external support. The inaugural Endowments for Impact Challenge was created as a collective, public tender competition to identify and elevate the advisors best equipped to help trusts and foundations invest responsibly and in line with their missions.
Last month, EFIC released its final report, Mission Meets Capital: Findings from the Endowments for Impact Challenge. The report celebrates the contributions of EFIC finalists — Argus Advisory, Ethinvest, and LGT Crestone — as well as the people’s choice awardee, Evans & Partners, and the joint winners, Australian Impact Investments and Koda Capital.
Drawing on insights from our Expert Panel — Craig North, Abhilash Mudaliar and Dame Caroline Mason CBE — the report highlights strengths within the advisory sector.
For example, many of the advisors who responded to our Request for Proposals showed a nuanced understanding that trusts and foundations differ widely in size, mission, governance, geographic focus, and stage of growth. This contextual awareness enables more tailored strategies and genuine two-way collaboration between advisors and clients.
The report also surfaced areas ripe for improvement. With a few exceptions, advisors showed limited engagement with broader reform agendas tackling systemic threats to portfolios — not to mention society and the environment — such as climate change and inequality. While most applicants advertised expertise in engagement and escalation strategies, few could point to concrete examples of supporting shareholder action or successful advocacy with fund managers.
The report also highlighted limited advisor capability in originating and assessing opportunities in emerging markets and blended finance structures — critical areas for future growth.
For advisors, EFIC shows that the market for mission-aligned investment advice is growing, while mapping both best practice and opportunities for growth within the advisory sector.
For funders, the message is clear: as one sector colleague put it following the EFIC grand finale, “We cannot unsee what we have seen.” Many advisors are ready and able to help us align our endowments with our values and missions. And contrary to persistent myths, this does not necessarily mean sacrificing funds for grant-making.
Ultimately, EFIC demonstrates the power of openness and collaboration in foundations’ investment practice. Together, we can shift endowments from passive money-making machines into engines for change.
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