Social Impact Investing
What is Social Impact Investing?
This is a form of investment that both helps a social cause and allows for potential profit. In recent years, the way people invest their money has shifted. The younger generations are wanting real change with their money. They are living at home longer, socializing online more and care for social causes a lot more.
Impact investing and social investing have subtle differences. Social without impact means that investors seek to invest for social means, to be a part of something. Impact is the terminology used to make a difference to the social causes. This portrays a more serious approach to where the money in invested.
Many banks have conducted surveys since 2014. They found an increase of 75% of investors became interested in sustainable investments.
Is Social Impact Investing for me?
People invest for many different reasons. When researching if impact investing is right for you, these questions will help.
- Why am I investing? Social investments often return lower profits, although this is not for all funds. Investing this way is a trade off between profits and helping achieve a better World.
- Where is money money best used? Not all investments are equal! Some have greater impact, some have better returns or flexibility.
- Should I diversify into Social investments? Social investing has skyrocketed over the last few years, profits are for the early. Diversification has always played it's part but only you can make that decision.
- Why is Impact investing even a thing? It may seem strange to want to profit from a good thing. But psychology shows us this is the only way to incentivize more people to place their money in that cause. Many do not care about something until they have invested into such cause. This can be emotional or money invested, it is the same effect in our minds.
Where do I start?
While finding somewhere to invest in social causes can be difficult. Charity Token is bringing simplicity to the game. Our mobile app allows individuals to invest in Charity. The platform has an ever growing list of nonprofits and charities from around the world.
To make Charity a two way street so we could invest. We had to design a two economy. This was only able to happen using a cryptocurrency and token economy. Users will buy tokens in exchange for local currency e.g. dollars and then be able to access the apps features.
From here, individuals can be donators or investors by deciding what action to take. They can donate some or all, of their tokens. Or hold the tokens in the digital wallet to take part in the fee distribution.
You see, the community rewards the community. As users donate or transact on the network, the smart contract removes a fee of 10%. This is then distributed amongst token holders, Charities and the liquidity pool. All designed to increase the price and scarcity of the token. This incentivizes people to hold the token as investment and passive income.
As we see more causes joining the platform, the adoption rate will increase. this rewards the earlier adopters and so on.
The Charity app could help in situations like the Ukraine war. DeFi is without borders. Value moving without banks but through mobile phones and data networks. Therefore we can verify and send money in a peer to peer fashion directly to those in need!
The future of Social Impact Investing
We are working hard to bring this line of investment to the forefront of the next generation. NFTs show promise to provide the flexibility and security needed to pioneer SII. Charity Token is in design phase of a revolutionary new way to fundraise.
Our app will allow a greater inclusivity but if you prefer alternative methods we have added them here!