Beyond the Binary: Tracy Palandjian on Impact

Phil talks with longtime friend Tracy Palandjian, co-founder and CEO of Social Finance, about the space between traditional grantmaking and traditional investing, and why donors, foundations, and DAF holders aren’t limited to only one or the other. Tracy explains how Social Finance's unusual structure, a nonprofit that is also a registered investment advisor, lets it stay impact-first while deploying capital across a spectrum of tools most philanthropists never consider. Tracy walks through how this works in practice. For example, a revolving, interest-free loan fund helping low-income students become registered nurses, where repayment scales with a graduate's income and no one is left in debt if the job doesn't materialize. Tracy and Phil also dig into why so few foundations use program-related investments despite decades of the tax code allowing it, what it actually takes for a foundation to do this work well structurally, and how individual donors can put their investments to work. Tracy closes with a simple framework for donors sitting on new wealth: give a lot, give effectively, and where possible, give in a way that lets the money come back and do good again. Resources: Social Finance The Social Finance Institute ReNEW Fund: Reinvesting in Nursing Education and Workforce New Jersey Pay It Forward Fund Slow Philanthropy by Jeff Bradach Unpacking the Impact in Impact Investing by Paul Brest