Second of two parts
ImpactPHL is a nonprofit dedicated to advancing Greater Philadelphia’s impact investing ecosystem by aligning financial resources with community priorities to foster an inclusive, sustainable and resilient regional economy.
Cory Donovan, ImpactPHL’s co-founder and senior vice president of engagement, is a key force behind the organization’s mission to help individuals and organizations align their investments with their values, moving beyond traditional philanthropy, integrating financial returns and social impact for Philadelphia’s future.
Paula DeLaurentis: As head of community engagement, what strategies have you found most effective for building meaningful relationships across diverse stakeholders?
Cory Donovan: Our main focus is engaging local wealth in Philadelphia, including high net worth individuals, family offices, and foundations, because they care deeply about local issues. We also connect with their advisors and make sure they know the local investment opportunities.
Ultimately, our job is to engage, challenge, inform and empower these stakeholders to use their financial resources differently for greater local impact. It’s about building trust, understanding the local context and making sure everyone, from investors to community members, has a seat at the table.
PD: So your approach really comes down to “engage, challenge, inform, and empower”?
CD: Exactly. First, we engage by reaching out and identifying local wealth, not to sell anything, but to start the conversation. Then we challenge the traditional “two-pocket” mindset, where giving and investing are separate, by asking people to consider if their investments might actually be undermining the causes they care about.
Next, we inform by helping people see how their money is actually working. For example, I’ll use tools like As You Sow’s investor values platform to show someone if their investments align, or don’t, with their priorities, like gender equity or racial justice. That often leads to deeper conversations with their financial advisors about making real changes.
Finally, we empower by encouraging people to align their money with their values and, if local impact matters to them, to explore local investment opportunities. Part of our job is to surface those opportunities, make them visible and connect local wealth to local impact. Ultimately, it’s about moving from intention to action-and that’s our North Star.
PD: I’m curious about advisors who shy away from impact investing, are they seeing it as a rabbit hole or too much work? Or do you think it’s because they’re comfortable with their current client base, maybe not tuned in to what next-gen investors, especially millennials and women, are looking for?
CD: It’s tough to generalize, because every advisor is different, but I’ve definitely seen both scenarios. Sometimes, we’ll get a last-minute call from a firm whose client is demanding impact options. Advisors want to keep the business, but aren’t really prepared or willing to lean in.
Other times, advisors admit it’s more work, so they hope the demand will just go away or avoid bringing it up altogether. I get it, the industry is changing fast, and that’s uncomfortable for some.
But on the flip side, there are firms that are embracing this shift and see it as essential for future growth. As one advisor told me, “This might be a small part of our business now, but we won’t win the next generation of clients without it.” With so much wealth moving to younger, more diverse investors who expect authentic conversations about values and impact, advisors who adapt will be the ones who thrive.
PD: What current trends in impact investing are you most excited about, and how is ImpactPHL positioning itself to leverage these opportunities?
CD: For me, it’s all about place-based investing. There’s a growing desire for people to invest directly in their own communities, but for many, it’s a new concept. We’ve been able to show real local opportunities here in Philly. First Step Staffing is a nonprofit we helped bring to the city that’s paid out over $100 million in wages since 2018.
Poverty reduction is a big focus for us, whether it’s through affordable housing or job creation. We’re not saying it’s either/or — donate or invest — rather we want people to see that their investments can also drive real change.
After nearly nine years, we have concrete examples of local impact, making it easier for people to understand and get involved. That’s what excites me most: building an economy that solves the problems we care about, right here at home.
PD: How has the definition of impact changed since you started ImpactPHL nine years ago, and where do you see it heading?
CD: Honestly, I tend to avoid the word “impact” because it means so many different things, even within the field. When we started, the focus was on the “Olympic athletes” of impact investing, people who are intentional with measuring, reporting and advocating. But most people aren’t there yet. Many don’t even know what’s in their portfolios.
So, our goal has shifted to just getting people “off the couch” and helping them be more intentional and align their investments with their values, even if they’re not experts. The terminology can get in the way; what matters is making this mainstream and accessible. Everyone’s approach is different, and not everyone has the time or expertise to make direct investments.
Our job is to build the “plumbing” that makes it easier for anyone to get started. If we want to solve the problems that matter, we need to help more people move from passive to purposeful with their money.
PD: I totally agree. The industry’s labels and jargon can be alienating for everyday investors. At Equities.com, we decided to call ourselves a destination for “mindful investors” because mindfulness is broad and personal. It’s about investing with intention, whatever that means to you. You don’t have to fit into a specific category to care about where your money goes.
CD: Absolutely, and I’d double down on that. It’s important for people to self-identify with their investments based on what matters to them, not on labels. This isn’t political, it’s personal. Whether it’s cancer research, mental health, or the local community, everyone has causes they care about.
Sometimes, people don’t even see themselves as investors, even if they have the means. Our job is to help them realize their money can support what they value. Too often, we outsource our financial decisions and lose sight of the local impact we could have. If we make our money in Philly, or anywhere else, why not invest it back into our own communities? That’s the mindset shift we’re trying to encourage.
Whether our community is Philly or Connecticut or my hometown of Scranton or Kansas City or Blacksburg, Virginia. When we send our money to Wall Street, or we make it there, and then we send it out, why do we wonder when we don’t have the capital in our community to fund the things we need? I think that’s a fundamental, and I always think of Arsenio Hall and “things that make you go, Hmmmm”
PD: Let’s stay on this for a second, because I think it’s so important how people identify themselves, especially women. Many don’t call themselves investors, even though they have 401(k)s or IRAs. Just realizing they are investors is the first step to being empowered with their money. It’s surprising how many people don’t see themselves that way.
CD: It’s like that old saying, “penny wise, pound foolish.” People might budget or donate thoughtfully, but they overlook their investments as a tool for change. Your vote and your investments are two of your biggest levers for shaping the world, but most people leave that investment tool unused.
And, honestly, most people don’t even know what’s in their portfolios: They just look at the returns, not what they actually own. That’s a big blind spot we need to address.
PD: When I first entered into socially responsible investing, when I was asked to run the SRI conference for Folio Investing, Morgan Stanley found 86% of millennials wanted to invest in line with their values. Last year, it was 99%, and that rate seems to keep rising, even as the politics and noise get louder.
Despite the labels and controversy, most people, if given the choice, want their investments to do good. The industry hasn’t helped by making it political or confusing. But the individual investor’s desire for intentional investing is only getting stronger.
CD: As Obama said, “change is hard because someone’s always benefiting from the status quo.” When I show people how their money is invested, especially if it’s not aligned with their values, it’s a real wake-up call. For most, it’s not just about returns; it’s about connecting head and heart.
We’re seeing more people, especially women and younger investors, push for intentional investing. This isn’t a passing trend, it’s a one-way movement. Here in Philly, nine foundations have switched advisors in the last three years to focus on mission-aligned investing, with more on the way. As more people talk openly and challenge old frameworks, investing with purpose is becoming the new norm.
PD: This is music to my ears, Cory. Every time we talk, I leave feeling optimistic. If you could go back and give yourself advice when you first started ImpactPHL, what would it be?
CD: I’d tell myself to be confident in the vision. Early on, we had a theory of what was possible, but now I know from hundreds of conversations that most people don’t realize where their money is invested or the impact it could have. My job is to help them see new possibilities and connect them to a community that supports their journey.
Looking back, I’d say: trust that people are hungry for this, and what we’re doing really matters.
Read the first part of the interview with Cory Donovan
