“In recent years, eye-catching demonstrations by artists have thrown major gifts from “tainted” sources into sharp relief, suggesting museums themselves should be mindful of how they make their money. In the wake of the Black Lives Matter protests, museums made strong public commitments to the values of diversity, equity, and inclusion—but two years later museum workers have questioned whether actions reflect words,” said co-authors Laura Callanan (Upstart Co-Lab) and Maxwell L. Anderson (Souls Grown Deep). “One way that museums can strengthen their reputations and follow through on their public declarations is by aligning the billions of dollars in their endowments with their values and missions.”
“A recent survey of independent museums of art and design in the US—published this week by Upstart Co-Lab, the Association of Art Museum Directors and the Black Trustee Alliance for Art Museums—sheds light on this disparity, finding that just 13 percent of museums are engaged in impact investing, compared to 47 percent of colleges and universities and 51 percent of foundations.”
“What’s more, the study revealed that issues often cited as barriers to museums getting involved with impact investing have already been solved: the capacity to measure impact, the availability of quality impact investing products across all asset classes and the ability to achieve market-rate financial returns. In fact, a Morningstar report found that sustainable funds outperformed peers in 2021.”
“As also evidenced by the survey results, investment committees and leadership teams tend to drive the conversation around impact investing at the museums leading their peers. But everyone committed to the future of America’s art museums can play a part in shifting museums’ endowments to impact investing.”