The philanthropic sector has been a force for positive change. Still, today, we have an even greater opportunity to align our financial resources with the values and missions that drive us. At The Russell Family Foundation (TRFF), we believe that values-aligned investing is not just an option; it is a powerful tool for impact.
For too long, the philanthropic sector has approached investment portfolios as separate from its core mission. But what if every dollar we manage could catalyze the change we seek? At TRFF, we began exploring this shift in 2004, and today, we know firsthand that aligning financial assets with climate action is essential for long-term success.
Embracing this approach requires more than good intentions; it calls for bold action and thoughtful governance. Early in 2022, we took an important step by conducting an open call for new Investment and Audit Committee members. Welcoming fresh perspectives helps us make better decisions, ensuring our financial choices reflect the diverse world we serve.
Our commitment deepened later that year with the launch of our Catalytic Climate Finance (CCF) program designed to drive systemic change. More than just funding, CCF is about reimagining how capital is deployed to accelerate emissions reductions, support grassroots leadership, and support a just transition.
The CCF program is built on four key pillars: (i) deploying capital for maximum impact by investing in companies that prioritize low-carbon solutions as a strategic imperative; (ii) funding early-stage grassroots movements to support bold ideas, especially those overlooked by traditional finance; (iii) harnessing the power of collective action through aligning with others, sharing knowledge and collaborating with like-minded partners to drive large-scale transformation; and (iv) ensuring equity in the transition to a sustainable future through investing in communities disproportionately affected by the climate crisis.
Transparency is at the heart of our work. In 2023, we publicly shared our Investment Policy Statement to encourage greater openness in the sector. In 2024, we were honored to receive a platinum rating through the Intentional Endowments Network’s Endowment Impact Benchmark assessment, recognizing the intentional and rigorous efforts we are applying throughout our journey.
This year, we further deepen our commitment by announcing $19.5 million in CCF grants and investments. This isn’t just about numbers - it’s about providing what’s possible when philanthropy embraces the full power of its capital. The financial decisions we make today will determine whether our sector remains relevant in the years to come.
At TRFF, we are not just following a trend but helping set new standards. Our commitment to achieving net zero greenhouse gas emissions as a foundation and our rigorous carbon tracking efforts with Carbon Direct underscore this reality.
If you are part of a foundation that has yet to explore values-aligned investing, we encourage you to take that first step. The future of philanthropy goes well beyond grantmaking - it’s about all the philanthropic tools that can be deployed.
As we move into 2025, let’s not wait for change to happen. Let’s be the change. Together, we can shape a philanthropic sector that leads with courage, invests with integrity, and leaves a lasting impact on the world we all share.
This piece is part of a series from our members about trends to watch in 2025. You can read additional insights here.
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