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Among foundations and endowments that don't incorporate ESG, impact or mission-aligned strategies, nearly half of them haven't even considered doing so, according to the results of the most recent Endowment & Foundation Survey from CAPTRUST Financial Advisors.
The annual survey, which collected responses from 171 nonprofit organizations in August and September, showed that 31% are currently allocating assets to environmental, social and governance; impact; or mission-aligned strategies. But of those that aren't, 47% signaled that those strategies have not even been considered.
Reasons that respondents gave for not moving forward with such strategies is lack of a defined solution (23%) and complexity (16%), while expense (3%) and lack of manager track record (2%) were lower on the list of concerns.