Why ‘Impact Investing’ Has Lost Its Meaning

In this short video, TFOA founder Marc Sharpe explains why the term ‘impact investing’ has lost its meaning — and how family offices can invest with genuine purpose.

It’s a companion to TFOA’s whitepaper on conscious capitalism and impact investing.

Transcript

Impact investing is one of the most meaningless terms in finance.

Almost any investment can be framed as impact these days. There’s no standard. No definition. No bar. When a sponsor pitches you an impact investment, ask one question. What specifically do you mean by impact? If they can’t answer with metrics, with measurement methodology, with a clear theory of change, they’re using the word as marketing. Walk. Same applies to ESG. And sustainability. The lexicon is exploding precisely because the line between for-profit business and philanthropy is becoming murky on purpose. That murkiness sells.

Real impact investing exists. It’s just rare. Real philanthropy exists too. The danger is collapsing them together, because that is how dubious deals get sold to good families. Keep the bright line and always ask the tough questions.