Philanthropy Language Cheat Sheet
Place-based philanthropy
An approach focused on understanding the issues, interconnections and relationships in a place and coordinating action and investment to improve the quality of life for that community. Victoria Foundation is a place-based funder.
Examples:
- A donor invests in housing, education, and food security in one neighbourhood.
- Donors collaborate to strengthen Indigenous-led initiatives in a shared territory.
- A corporate foundation supports workforce development in its host city.
Talking points for donor conversations:
- Place-based philanthropy creates measurable, lasting change in communities you care about.
- It strengthens relationships between local partners and builds capacity from within.
- Donors can see and feel the difference their gifts make locally.
Trust-based philanthropy
A model that emphasizes long-term relationships, unrestricted funding and mutual accountability instead of heavy reporting requirements.
Examples:
- A financial institution provides multi-year unrestricted grants.
- A funder simplifies its application and reporting to reduce burden on grantees.
- A donor funds a women’s collective to govern how to use the gift.
Talking points for donor conversations:
- Trust-based philanthropy shifts power back to the community.
- It’s rooted in partnership, transparency, and respect — not control.
- Unrestricted, multi-year funding is often the most transformational support we can provide.
Systems change philanthropy
Philanthropy focused on addressing the root causes of social issues through long-term, collaborative strategies.
Examples:
- Instead of funding food banks alone, a donor invests in policy reform and income equality initiatives.
- A coalition of funders tackle barriers to affordable childcare across the region.
- A donor funds advocacy work that changes laws affecting marginalized populations.
Talking points for donor conversations:
- Systems change philanthropy is about solving problems, not managing them.
- It requires patience, collaboration and a willingness to address root causes.
- Donors can be part of transformational change, not just temporary relief.
Collective (or collaborative) philanthropy
Multiple funders working together to address shared social goals. The emphasis is on alignment, coordination and shared learning, rather than isolated or siloed giving.
Examples:
- A women’s giving circle focuses on gender-lens investing.
- Place-based community funding informed by local data and lived experience.
- Co-funded learning or capacity-building initiatives.
Talking points for donor conversations:
- Collaborative philanthropy allows donors to align their values, learn together and create greater impact than any one of us could achieve alone.
- It shifts philanthropy from a series of individual transactions to a collective effort.
- The collaboration is the value, not just the dollars.
- Collective impact works because no single organization can solve systemic problems alone.
- It aligns partners under a shared vision and measures success together.
- Your contribution strengthens the whole ecosystem, not just one program.
Responsible investing (RI)
Investments that integrate environmental, social and governance (ESG) factors while also generating a financial return.
Examples:
- A donor portfolio excludes tobacco and firearms while prioritizing companies with ethical labour practices.
- An investment manager screens for diversity and inclusion in board representation.
Talking points for donor conversations:
- Responsible investing focuses on avoiding harm. It’s the baseline of ethical investing.
- It’s a good first step for donors exploring how to align their investments with their values.
- The next step beyond responsible investing is impact investing. Impact investing is where you intentionally seek measurable good.
Impact investing
Investments made in organizations and funds with the intention to generate significant and measurable social or environmental impact along with a financial return.
Examples:
- A foundation invests in renewable energy start-ups that reduce emissions.
- An impact investor funds a women-led agri-business that supports rural livelihoods.
- A corporate foundation invests in a local green bond to improve sustainability infrastructure.
Talking points for donor conversations:
- Impact investing allows your dollars to create change while earning returns.
- It’s about investing in companies that measure their success in lives changed, not just profit.
- Your investments can align with your values without compromising performance.
Gender-lens investing
Investing in ways that advance gender equality and women’s empowerment — from supporting women-led businesses to promoting workplace equity.
Examples:
- A foundation invests in a venture fund that backs women entrepreneurs in STEM.
- A pension fund measures its portfolio companies’ gender pay equity.
- A donor invests in microfinance programs that empower women in rural communities.
Talking points for donor conversations:
- Investing in women and girls fuels stronger families and communities.
- It’s a tangible way to align investments with equity and inclusion values.
Program-related investment (PRI)
A PRI is a loan or equity investment made by a charity or foundation to advance its charitable mission. The primary purpose is impact, not profit.
Examples:
- A foundation provides a low-interest loan to a social enterprise training newcomers for green jobs.
- A charitable hospital invests in a local medical technology start-up aligned with its mission.
- A foundation offers a mortgage guarantee for an affordable housing project.
Talking points for donor conversations:
- PRIs let foundations support charities in new, financially sustainable ways.
- They recycle charitable capital so that funds come back to be used again.
- PRIs expand the tools available beyond traditional grants.
Mission-related investment (MRI)
An MRI is an investment made from a foundation’s endowment that aligns with its mission while seeking market-rate returns.
Examples:
- A foundation invests part of its endowment in a company that builds digital learning platforms for low-income students.
- A healthcare-focused foundation invests in green hospital technology.
- A donor-advised fund invests in affordable housing REITs that generate both income and impact.
Talking points for donor conversations:
- MRIs ensure that every dollar in your endowment works toward your mission.
- They allow you to invest responsibly while maintaining strong financial returns.
- Unlike grants, MRIs grow the endowment while advancing purpose-driven goals.
Social finance
Social finance is a way to manage money to achieve social and environmental goals while also generating a financial return. It's a category of financial services that uses capital to address social and environmental challenges.
Examples:
- A social finance fund supports clean energy retrofits for low-income housing.
- A credit union issues community loans to Indigenous-led businesses.
Talking points for donor conversations:
- Social finance brings business tools into the world of social change.
- It helps organizations scale solutions that can repay or reinvest capital over time.
- Philanthropy can de-risk or catalyze these projects by being the first in.
Blended finance
A strategy that combines philanthropic, government and private capital to unlock investment in projects that otherwise might not attract traditional funding.
Examples:
- A foundation provides a low-interest loan to a clean water initiative to attract private investors.
- A government matches philanthropic contributions to expand affordable housing.
- A corporate donor partners with a foundation to create a co-investment pool for climate innovation.
Talking points for donor conversations:
- Blended finance helps philanthropic dollars unlock much larger pools of capital.
- It’s a strategic way to make every dollar go further through partnerships.
- Donors can act as catalysts, not just funders.
Community bond
A community bond is a loan from individuals or organizations to a community project, where investors earn interest and help fund a social asset.
Examples:
- A local theatre raises $1 million in community bonds to renovate its building.
- A co-op sells bonds to build a solar farm owned by residents.
- A non-profit school issues bonds to fund new classrooms.
Talking points for donor conversations:
- Community bonds turn community members into impact investors.
- They keep both ownership and financial returns local.
- They’re a great way to engage donors who want to see tangible, place-based impact.
Regenerative capital
Regenerative capital refers to funding and investment approaches that don’t just avoid harm or create impact, but actively restore, renew, and strengthen the systems (environmental, social, cultural, and economic) that communities depend on.
Examples:
- A foundation invests in Indigenous-led land restoration projects that regenerate soil health, protect biodiversity and support cultural revitalization.
- A donor supports a financing pool that helps farmers shift to regenerative agriculture practices (e.g., no-till, crop rotation, carbon sequestration). The fund offers patient, flexible loans that allow the farmers’ land to heal while improving long-term profitability.
- A donor-advised fund invests in a social enterprise that turns textile waste into new fibre, reducing landfill waste and employing people facing barriers to employment. The business regenerates both environmental and social systems.
Talking points for donor conversations:
- Regenerative capital goes beyond impact. Its goal is restoration. It ensures our investments help communities and ecosystems become stronger, more resilient and healthier.
- It’s about long-term thinking. Regenerative approaches prioritize durable change, not quick fixes.
- This is philanthropy that heals from an environmental, social and cultural perspective. A powerful message for values-aligned fundholders.
Philanthropic capital
Philanthropic capital refers to all the financial and non-financial resources that can be deployed for public good, including traditional grants to loans, guarantees and impact investments.
Examples:
- A foundation uses a portion of its endowment to invest in local affordable housing projects.
- A donor provides a recoverable grant to a social enterprise that employs newcomers.
Talking points for donor conversations:
- Your philanthropy doesn’t have to stop at grants; it can be invested to have a greater impact.
- Philanthropic capital is about putting all your resources to work for impact.
- You can recycle philanthropic dollars by using them again and again to generate community benefit.
Catalytic capital
Catalytic capital is flexible, risk-tolerant funding that helps unlock larger investments by taking the first step or absorbing more risk.
Examples:
- A philanthropic investor offers a loan guarantee to a social housing initiative.
- An impact investor provides seed funding to prove a new social enterprise model.
Talking points for donor conversations:
- Catalytic capital helps overcome barriers that prevent projects from attracting funding.
- It sends a powerful market signal: ‘We believe in this initiative.’
- Philanthropy can play a unique role in de-risking early-stage ideas with big potential.
Social enterprise
A business that sells goods or services to achieve a social or environmental mission, reinvesting profits into its purpose.
Examples:
- A non-profit café employs people facing barriers to employment.
- A recycling company funds local environmental education programs.
- A social enterprise creates affordable prosthetics using 3D printing technology.
Talking points for donor conversations:
- Social enterprises blend purpose with sustainability.
- They generate earned income while tackling systemic issues.
- Supporting them strengthens local economies and innovation.