Higher consumer prices are dominating financial headlines, but an investment trend is making noise. It encourages putting money into causes that provide a social benefit, and this movement gaining steam in Minnesota.

Socially responsible investing is coming off a record year, with nearly $650 billion flowing into these funds.

Casey Shultz - director of investor relations with the Saint Paul & Minnesota Foundation - said in the world of philanthropy, it can mean shifting a portfolio away from fossil fuels to clean energy.

She said it doesn't have to just involve larger institutions. Separately, smaller investors can jump in.

"We're in a really lucky time where there are so many more investment vehicles being offered," said Shultz. "So, there truly is an opportunity for any type of investor - whether that's you as an individual or going all the way up to larger pension funds or other institutional investors. "

On a larger scale, the Foundation recently became the first community foundation in the U.S. to sign on to the Principles for Responsible Investment network, which is backed by the United Nations.

Research has shown this type of investing results in strong financial returns, but some analysts warn to be wary of companies who pledge responsible actions, but fail to follow through.

Shultz echoed the sentiments of researchers who suggest sustainable investing can be a good business decision. She predicted that this will be more of a factor as governments around the world craft policies meant to address climate change.

"We're looking at companies that are forward thinking," said Shultz, "that they see these regulations that are coming and they're like, 'Oh, we better start making investments to address this now so that it's not a huge financial burden down the line.'"

At the end of the day, she said this approach shapes a better future for the nonprofits the Foundation works with. She said they already started going this route before joining the UN PRI movement this spring, pointing to their community investment fund, which accepts individual donations.

A 2020 analysis from Arabesque Partners found that 80% of sustainability business practices have a positive influence on performance.

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As Americans make end-of-year donations to their favorite causes, those that help children with cancer and their families say these households need support in difficult situations. A Minnesota-based group says inflation underscores the need.

The Pinky Swear Foundation has grown into a national philanthropic organization that will soon celebrate its 20th anniversary. The group's marketing manager, Jake Leif, said it's important that people also support cancer research and medical-debt initiatives, but groups such as his fill in the gaps in areas that might not receive as much attention when a family goes through this type of journey.

"When the child has cancer, life carries on," he said, "and so [there's] a lot of gas and grocery bills, rent, mortgages, car payments."

Leif said it makes it harder when a parent has to pause working, and the total cost of a child's cancer journey can exceed $800,000. He added that inflation has affected everyone's wallets this year, and these families are no exception. Support from the foundation, including individual donations, is designed to remove the pressure of those daily expenses.

While platforms such as GoFundMe are another good tool, Leif said they can only do so much when a situation quickly overwhelms a family's finances.

"We hear from families all the time that they had a beautiful nest egg, they had a healthy, healthy savings account," he said, "and childhood cancer came through and just blew it down."

The organization also will observe national Pinky Swear Day on Sunday. That proclamation originated from action in 2014 by then-Minnesota Gov. Mark Dayton. It reflects how the group was inspired when a 9-year-old boy named Mitch, who was diagnosed with cancer, gave his savings to families on the pediatric oncology floor where he was receiving treatment. Before his death, he asked his father to promise to carry out this mission moving forward.

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Economic uncertainly created by the pandemic did not stop Americans from boosting charitable donations to record numbers in 2020 and overall giving in 2021.

But with inflation, it is unclear if it will continue. About 20% of charitable giving occurs between today and New Year's Eve.

Thomas Tighe, president and CEO of the nonprofit Direct Relief, a humanitarian organization providing emergency medical assistance and disaster relief in the U.S. and internationally, said choosing a charity you believe in is the first step to feeling good about making a contribution.

"Once you decide what it is that you care about, it's worth doing your homework to find a group that's going to do right with your money; going to make you feel proud," Tighe explained. "They're meeting these transparency standards. And that's a good thing to do, just to make sure that the cause speaks to you. Is your money going to serve the cause?"

Despite inflation, online Black Friday sales in the U.S. topped a record-breaking $9 billion this year, according to Adobe Analytics.

Tighe believes civic engagement is ingrained in American culture, evidenced by the existence of 1.5 million charities nationwide. According to Kindness Financial Planning, individuals accounted for almost three-quarters or $324 billion of charitable giving in 2020.

"For groups that rely on charitable support, it's a time of 'cross your fingers and hope you did everything well and that people are in a position to give,' and that's the big unknown, what the effects of inflation are," Tighe noted.

Among Baby Boomers, 72% give to charity, compared with 60% of millennials and 59% of Gen-Xers. Tighe added younger people often give smaller amounts to groups or causes not associated with corporate workplace campaigns.

"There's no sense that people who are younger care any less, I think they may engage differently in the type of giving that they do or engagement," Tighe explained.

To make sure your contribution goes as far as possible, consumer-guidance services such as Charity Navigator and the Better Business Bureau rate charities for a variety of trust factors.

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UPDATE: This story was modified 10/26/2022 at 2:30pm MST to reflect a request for comment from The California Alliance of Pregnancy Care, which represents pregnancy resource centers across the state.

CLARIFICATION: Information was added to this story from the California Alliance of Pregnancy Care. (7:30 p.m. PDT, Nov. 1, 2022)


In the wake of the Supreme Court decision to overturn Roe v. Wade, Crisis Pregnancy Centers are drawing more scrutiny.

In June, California Attorney General Rob Bonta warned the centers advertise reproductive health care services, but their true mission is to dissuade people from seeking an abortion.

Stephanie Peng, senior manager of movement research for the National Committee for Responsive Philanthropy, said the centers sometimes make false claims about the risks of the procedure.

"There are really intentional practices to lure people who are seeking abortion information," Peng contended. "And then really mislead them away from having an abortion without giving them a choice to even think about it."

Allison Martinez with the California Alliance of Pregnancy Care said in a statement that state-licensed pregnancy help centers are "committed to honesty, and use only licensed professionals to perform medical procedures, including ultrasounds."

She added that centers without a medical license do not represent themselves as providing medical services, and all centers agree to not obstruct or delay a decision to terminate. Martinez described most centers as "faith-based and nonprofit, each with its own governing board," and said many offer pregnancy classes and free diapers.

State data show 179 such centers operate in California.

A recent report from the National Committee for Responsive Philanthropy looked at Internal Revenue Service records and found the centers and their tax-affiliated organizations took in $4 billion from 2015 to 2019.

Peng pointed out the centers often have ties to much larger organizations, many affiliated with the right-to-life movement.

"There's this common misconception that CPCs are just really small, individual-run organizations that are all volunteer-based; they might be operating out of a church," Peng noted. "But what we found is that $4 billion is a substantial amount of revenue that they are getting. "

The report recommended charitable donors and foundations check to see if the organizations they support are funneling money to the centers.

Fourteen states moved to ban or severely restrict abortion since the Supreme Court overturned Roe v. Wade earlier this summer. Peng added donors concerned about the right to choose may want to contribute to groups helping low-income women who may have to travel out of state for the procedure.

"The philanthropy and foundation sector really needs to support the local and state-based abortion funds," Peng urged. "Who are really providing the financial and practical assistance to individuals who are seeking abortion care."



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