Investing Philosophy

Threshold aspires to employ all our financial wealth – both our philanthropic dollars and our investment dollars – toward this aim. As individuals and in small subgroups, we share information, resources and strategies among ourselves to move capital out of conventional extractive models toward restorative investing and philanthropic giving. Aligning our investments and philanthropy with our values is not only powerful, it is healthy, fun, and sane.

We explore the myriad philosophies of values-aligned investing including portfolios designed to earn both financial and social returns to those that focus on retention of capital with social and environmental (non-monetary) dividends. We explore divestment, shareholder advocacy and consider environmental sustainability, social and racial justice, and governance lenses as essential components to the analysis of a company’s profitability and risk.

Investment Beliefs

Investment beliefs set the direction for investment policy, investment practice and organizational culture. They define how investment assets relate to and thereby create their value, in the context of future uncertainty, risk and opportunity. They also enable investors to make practical decisions about their investment style, their selection and monitoring of investment managers and advisors, their asset allocation, their investment decisions, their performance objectives, and their approach to active ownership.

We believe that:

• Money is a tool and can be used as a tool for good.
• All investment decisions have social, economic, environmental, racial, and political impacts, acknowledged or not.
• It is imperative to support generative rather than extractive economies.
• Investing in solutions to problems results in better financial and social returns.
• Finding investments that support the Endowment’s grant making e.g. climate change, resilient communities, soil and farm strategies, that are appropriate for the endowment’s size amplifies philanthropic goals.
• A percentage of the portfolio always has been and should continue to be in below market investments or Mission-Related Investments (MRIs) that benefit lower income and at-risk communities and are a safe, impactful, productive investment.
• Direct shareholder activism and through fund managers is a critical tool for creating social change.
• As Donuts, the donors to the endowment have/had a commitment to a just, joyful and generative world and as stewards of this money it is the responsibility of the Finance & Investment Committee and Circle to use this wealth towards that end.
• This belief statement, our investment policy statement, and our endowment can be a model to inform Donuts in their personal, family, and philanthropic investments.
• “Business operates to add value to society – without compromising the well-being of future generations,” and as stewards of an endowment we must “be humble and handle money with grace and smarts.”

 Quote from Josh Mailman in The Clean Money Revolution, Joel Solomon