The first foreign trip Joel Holsinger took in 2019 after joining the board of directors at the global health nonprofit PATH convinced him that he needed to do more to raise money for charities.
The investment manager, who is now also a partner and co-head of alternative credit at Ares Management Corp., saw firsthand how a tuberculosis prevention program was helping residents of Dharavi, India’s largest slum. He also saw that the main hurdle to expanding the program’s success was simply a lack of funding.
“I wanted to do something that has purpose,” Holsinger told The Associated Press. “I wanted a charitable tie-in to whatever I do.”
Shortly after returning from India, Holsinger created a new line of investment funds where Ares Management would donate at least 5% of its performance fee, also known as the “promote,” to charities. The first two funds of the resulting Pathfinder family of funds alone have raised more than $10 billion in investments and, as of June, pledged more than $40 million to charity.
Holsinger wanted to expand the model further. On Wednesday, he announced Promote Giving, a new initiative to encourage other investment managers to use the model, which launches with funds from nine firms, including Ares Management, Pantheon and Pretium. The funds that are now part of Promote Giving represent about $35 billion in assets and could result in charitable donations of up to $250 million over the next 10 years.
Unlike broader models like ESG investing, where environmental, social and governance factors are taken into account when making business decisions, or impact investing, where investors seek a social return along with a financial one, Promote Giving seeks to maximize the return on investment, Holsinger said. The donation only comes after investors receive their promised return and only from the manager’s fees.
“We’re not doing anything that looks at lower returns,” Holsinger said. “It’s basically just a dual man If we do good on returns for our institutional investors, we will also drive returns that go directly to charity.”
Charities, especially those who do international work, are in the midst of a difficult funding landscape. The dismantling of the U.S. Agency for International Development and massive cuts to foreign aid this year have affected nearly all nonprofits in some way. Those nonprofits who don’t normally receive funding from the U.S. government still face increased competition for grants from organizations who saw their funding cut.
Kammerle Schneider, PATH’s chief global health programs officer, said this year has shown how fragile public health systems are and has reinforced the need for “agile catalytic capital” that Promote Giving could provide.
“There is nothing that is going to replace U.S. government funding,” said Schneider, adding that the launch of Promote Giving offers hope that new private donors may step in to help offer solutions to specific public health problems. “I think it comes at a time where we really need to look at the overall architecture of how we’re doing this and how we could be doing it better with less.”
Sal Khan, founder and CEO of Khan Academy, which offers free learning resources for teachers and students, says the structure of Promote Giving could provide nonprofits stable income over several years that would allow them to spend less time fundraising and more time on their charitable work.
“It’s actually been hard for us to raise the philanthropy needed for us to have the maximum impact globally,” said Khan. While Khan Academy has the knowledge base to expand rapidly around the world and numerous countries have shown interest, Khan said the nonprofit lacks enough resources to do the expensive work of software development, localization and building infrastructure in every country.
Khan hopes Promote Giving can grow into a major funder that could help with those costs. “We would be able to build that infrastructure so that we can literally educate anyone in the world,” he said.
Holsinger hopes for that kind of growth as well. He envisions investment managers signing on to Promote Giving the way billionaires pledge to give away half their wealth through the Giving Pledge and he hopes other industries will develop their own mechanisms to make charitable donations part of their business models.
Kate Stobbe, director of corporate insights at Chief Executives for Corporate Purpose, a coalition that advises companies on sustainability and corporate responsibility issues, said their research shows that companies that establish mission statements that include reasons for existing beyond simply profit generation have higher revenue growth and provide a higher return on investment.
Having a common purpose increases workers’ engagement and productivity, while also helping companies with recruitment and retention, said Stobbe, who said CECP will release a report that documents those findings based on 20 years of data later this week. “Having initiatives around corporate purpose help employees feel a connection to something bigger,” she said. “It really does contribute to that bottom line.”
That kind of win-win is what Holsinger hopes to create with Promote Giving. He said many of the world’s problems don’t lack solutions. They lack enough capital to pay for the solutions.
“We just need to drive more capital to these nonprofits and to these charities that are doing amazing work every day,” he said. “We’re trying to build that model that drives impact through charitable dollars.”
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Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit apnews.com/hub/philanthropy.
Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
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