Mission Investors Exchange (MIE) is a nonprofit association that supports and connects foundations and other philanthropic organizations engaged in impact investing. MIE focuses on “mission investing,” which aims to generate positive social and environmental impact alongside financial returns.

MIE provides a platform that facilitates impact investing. With more than 250 member organizations, it offers resources, tools, and events to help mission-driven investors navigate the complexities of impact investing:

• Webinars and workshops: Educational events that cover everything from the basics of impact investing to advanced strategies for integrating social and environmental considerations into investment portfolios
• Market reports: Periodic reports that track trends, risks, and opportunities in the impact investing space
• Networking events: Opportunities for peer-to-peer learning, helping members to share best practices and build strategic partnerships

History of the Mission Investors Exchange

MIE was established in 2005 as a network and learning community for foundations and other organizations engaged in impact investing. It was founded by institutions that wanted to use investment capital to create social and environmental impact alongside financial returns.

The foundations behind the original funding for MIE are a who’s who of the foundation world, including the Annie E. Casey Foundation, the Ford Foundation, the George Gund Foundation, the John D. and Catherine T. MacArthur Foundation, the Meyer Memorial Trust, the David & Lucile Packard Foundation, and the Prudential Foundation.

At first, MIE focused on providing a platform for sharing information and fostering collaboration among mission-driven investors. It did so by establishing conferences, workshops, and networking events where members could share their experiences and best practices from the field of impact investing. Later, MIE expanded its activities to include research, advocacy, and the development of resources and tools to support its members. The organization has thus helped to deepen the public and investment community’s knowledge and practice of mission investing, as this has become a well-recognized and sustainable approach for helping to achieve social and environmental goals. MIE has supplemented its activities by collaborating with other organizations and networks in the United States and internationally.

Mission Investors Exchange Membership

The MIE offers three types of membership:

• Foundation members: Independent foundations, philanthropic organizations, and community groups interested in impact investing and aligning their investments with their mission and values can become foundation members.
• Sustaining members: These members provide more financial support to help MIE improve its platforms, advocacy, and outreach.
• Affiliate members: MIE offers this membership for individuals and firms well placed to help steer organizations toward impact investing, such as asset managers, consultants, funds, investment advisors, community development financial institutions, and corporate and nonprofit attorneys.

Key Aspects of MIE Membership

These are some of the benefits of MIE membership:

• Networking and collaboration: Members can connect with peers, share their experiences, and learn from one another through conferences, workshops, and MIE’s online platforms.
• Learning and education: MIE offers educational resources and programs, such as webinars, workshops, training, and access to research reports, news in the sector, and case studies.
• Advocacy: MIE supports a platform where members can collectively advocate for policies and practices that support mission-driven investing. The organization also meets with policymakers, regulators, and other stakeholders to promote policies that enable and create additional incentives for impact investing.
• Resources: MIE offers members access to tool kits, guidelines, templates, and reports on topics such as impact measurement, due diligence, investment strategies, and legal and governance frameworks.

The annual membership fee depends on the size and type of organization.

Mission-Related Investing (MRI)

The landscape in investing has changed as entrepreneurs, investors, and philanthropists in the last two decades have been looking beyond the traditional model of maximizing profits while separately allocating charitable contributions. Instead, they’re looking for investment avenues that can do both simultaneously.

Into this mix arrived mission-related investing (MRI), which organizations may adopt for different reasons—whether guided by political or societal goals, their philanthropic efforts, or to have another tool for their charitable giving. Also known as mission-driven investing or program-related investing, MRI attempts to use financial capital to generate a positive social and environmental impact while pursuing financial returns.

Some distinctions are helpful, given the varied acronyms related to MRI in the investment community. Unlike traditional forms of investing, the impact investing of MRI has a dual purpose: the financial gains of traditional investing along with positive social or environmental effects.

While MRI’s mission investing shares similarities with socially responsible investing (SRI), which employs negative or positive screening of publicly traded stocks—such as steering clear of companies involved in the tobacco, alcohol, and gambling sectors or, conversely, favoring those producing socially beneficial goods or services—impact investing goes a step further. Where SRI is geared toward an already-available menu of options, impact investing seeks opportunities to invest in organizations, projects, or funds that might yield meaningful financial returns and measurable social or environmental change.

MRI is also different from environmental, social, and governance (ESG) investing, which primarily focuses on a company’s governance practices and its social and ecological footprint, and doesn’t necessarily aim for a measurable, positive impact. In summary, while both ESG and SRI emphasize ethical considerations in investing, they differ in their focus and methods:

• SRI: Generally takes a more passive stance, using negative or positive filters to select or exclude investments based on ethical guidelines
• ESG: Emphasizes the importance of environmental, social, and governance factors and may not be involved in generating an impact through investments
• Impact investing: Actively targeting investments that can generate both financial returns and quantifiable, positive social or environmental changes

Key Characteristics of MRI

These are some key characteristics of MRI:

• Mission alignment: The primary objective of MRI is to align investments with the mission and values of an organization. This allows investors to use their financial resources to support and advance their social or environmental goals.
• Financial returns: MRI also aims to generate financial returns. Investors typically seek to achieve returns aligning with their objectives and risk tolerance. The intent is to deploy capital to balance social impact and financial considerations.
• Measuring impact investing: Mission-related investors use impact measurement and evaluation frameworks to assess their investments’ social or environmental outcomes. This helps them understand the effectiveness of their strategies, track progress toward goals, and refine their investment approaches over time.
• Broad investment spectrum: MRI involves a wide range of asset classes, including equities, fixed income, real estate, private equity, venture capital, and more. The investment choices depend on the investor’s mission, risk appetite, and financial objectives.
• Risk management: Investors need to consider financial risks alongside impact risks, evaluating factors such as market volatility, regulatory changes, and potential social or environmental risks associated with their investment positions.
• Long-term perspective: MRI often takes a long-term view, recognizing that sustainable social or environmental change may require patient capital and extended investment horizons. This approach lets investors focus on outcomes and impacts that may take time to materialize.

The Bottom Line

MIE is a membership organization that supports foundations and mission-driven organizations in pursuing impact investing, a type of investing that differs from ESG and SRI. MIE provides a platform for networking, knowledge sharing, and collaboration among its members, offering resources, events, and educational opportunities to improve the effectiveness of mission-related investing. By fostering connections, advocating for enabling policies, and promoting best practices, MIE aims to strengthen the field of impact investing and drive positive social and environmental change.