Exploring the impact of every pound: how foundations are putting all their assets to work 

The top 300 UK foundations hold an estimated £87 billion in invested assets – an extraordinary pool of capital that could reshape social and environmental outcomes across the UK. 

Yet historically, much of this capital has been invested purely for maximum financial return, often without explicit consideration of the charitable missions these foundations exist to advance. 

That is beginning to change. 

Momentum is building across the sector as a growing number of foundations rethink how their endowments are used. Rather than treating investments and impact as separate activities, modern foundations are increasingly recognising that every pound – whether granted or invested – can be a tool for change. Some are exploring accelerated spend-down strategies; others are scrutinising the social and environmental effects of their entire portfolios. Taken together, these shifts are redefining what it means to be a foundation in the 21st century. 

New research by the Impact Investing Institute, supported by Access – The Foundation for Social Investment, explores how far this shift has progressed and what is needed to accelerate it. The research maps the UK foundation ecosystem, identifying existing support structures, gaps in provision, and opportunities to catalyse a sector-wide move towards considering the impact of every pound. 

The findings reveal a sector at very different stages of adoption. At one end are a small number of ‘first movers’, who have been actively deploying capital across the spectrum from responsible investment through to impact and social investment over many years, examples include Esmée Fairbairn Foundation, Friend’s Provident Foundation and Access. Alongside them sit ‘fast followers’, expanding commitments made in recent years, including Vivensa Foundation. A significant grouping is foundations with emerging interest, often stuck in early strategy development. Finally, a large untapped potential group continues to operate largely outside existing networks and conversations. 

The research also highlights why progress remains uneven. Deep-seated cultural norms continue to separate investment decision-making from mission delivery, reinforced by a cautiousness amongst trustees, a sense of risk aversion and limited exposure to values-driven investment approaches. Structural gaps in the financial services ecosystem – particularly a lack of advisory support that combines mainstream financial expertise with impact and social investment knowledge – can make it harder for foundations to move from strategy to execution. Even at the early stages of discovering this work, resources often fail to reach organisations outside established networks, creating an engagement challenge. 

None of this is entirely new. In the UK and internationally, there is a growing body of foundations and other asset owners demonstrating that it is possible to deliver impact across all assets while still meeting financial needs. What is different now is the visibility of that practice and the willingness of foundations to share what they have learned. 

Examples of progress are increasingly visible. A growing number of foundations have publicly shared the details of their journeys – including the challenges, trade-offs and imperfect decisions involved in aligning endowments with mission. These case studies show that progress is rarely linear, and that meaningful change is often built through iteration rather than perfection. 

This culture of transparency and peer learning emerged in the research as one of the most powerful enablers of progress. By making practice visible, it helps to demystify the process for those just starting out and to normalise approaches that once felt experimental or risky. 

To support this sharing, the research has been accompanied by a growing bank of case studies, tools and resources, spanning organisations at the very beginning of their journey through to those with more established practice. These materials are intended to make it easier for foundations to identify relevant entry points, regardless of size or starting position. 

All investments have an impact – positive or negative. What is becoming increasingly clear is that being intentional about that impact is both practical and achievable, and is rapidly moving from the margins towards the mainstream. 

Recent announcements and published strategies illustrate a range of approaches in action. Together, they signal not a single model to follow, but a shared direction of travel. 

The invitation to the rest of the sector is threefold.  

First, engage with the growing body of resources and evidence that exists. 

Second, connect with peers and networks working to accelerate progress collectively. 

 Third, take a first practical step – whether that is asking new questions of advisers, revisiting an investment policy, or opening up a conversation between trustees and staff about how investments and mission connect. 

The £87 billion held by UK foundations is most powerful not when deployed in isolation, but when it begins to move with intent and in the same direction. This work is about making that easier – and about ensuring that every pound is working as hard as possible in pursuit of charitable purpose. 

This work forms part of a broader effort to support the UK foundation sector to consider the impact of all its assets and to use the sector’s collective firepower more intentionally. If you are interested in being involved in this work, or in shaping how it develops next, please contact Tanishtha SenGupta at Access – the Foundation for Social Investment, tanishtha.sengupta@access-si.org.uk  

If you would like to hear more about the research findings, or contribute examples, tools or reflections to the resource bank, please get in touch with Sophia Omar at the Impact Investing Institute, Sophia.omar@impactinvest.org.uk