Philanthropic investment apps are emerging as a way to make impact investing more accessible to individual investors. By leveraging technology, these apps lower the barriers to entry and allow even small-dollar investors to support socially and environmentally focused companies and funds. Key features of philanthropic investment apps include simplified onboarding, pre-screened investment options, fractional share investing, and impact reporting. As interest in values-aligned investing grows, especially among millennials, philanthropic investment apps provide an easy on-ramp for those seeking to use their capital to drive positive change.
Low minimums open impact investing to all
One of the biggest obstacles to impact investing has traditionally been high minimum investment amounts. Most impact investment funds and offerings are geared towards accredited investors and institutions, requiring minimum investments of $100,000 or more. Philanthropic investment apps lower the barrier to entry by allowing investors to get started with as little as $1. Apps like Aspiration and OpenInvest offer fractional share investing, which opens the door for small-dollar investors to own pieces of environmentally and socially focused publicly traded companies.
Values-based portfolios in a few clicks
For new investors, researching and selecting individual stocks that align with their values can be daunting. Philanthropic investment apps simplify the process by offering pre-built portfolios focused on themes like clean energy, gender equity, and sustainable agriculture. After answering a few questions about their interests, investors can deploy capital into relevant, pre-screened funds and companies with just a few taps on their phone.
Seamless impact reporting
Tracking the impact of investments can be difficult without the right tools. Philanthropic investment apps equip users with dashboards and reporting that illustrate the environmental and social footprints of their portfolios. Impact data like greenhouse gases avoided, jobs created, and women appointed to boards make the results of values aligned investing tangible for users.
Accessibility drives adoption of sustainable investing
By tapping technology to streamline impact investing, philanthropic investment apps are playing a key role in driving adoption of sustainable investing among the mainstream public. According to US SIF’s 2020 Report on US Sustainable Investing Trends, sustainable investing assets in the U.S. total $16.6 trillion, up 42 percent since 2018. With millennials leading the charge into sustainable investing, philanthropic investment apps provide an intuitive platform to turn interest into action.
In summary, philanthropic investment apps are increasing access to impact investing by allowing anyone to get started with fractional investments in values-aligned companies and funds. By simplifying onboarding, curating pre-built portfolios, and seamless impact reporting, these apps provide an easy entry point for small-dollar and first-time investors looking to use their capital to drive social and environmental change.