Investing for Good: Abundance Capital’s Journey to Transform Communities

Explore the philanthropic revolution in private investing with Margaret Gifford, co-founder of Abundance Capital. Learn how Abundance Capital is reshaping communities, bridging gaps, and creating lasting impact.

What motivated you personally to get started in private investing?

I have been working in investor relations in the public capital markets since my first job in institutional equity sales at Morgan Stanley in NYC. A few years ago, I shifted to using my skills in alternative investment raising to help “for benefit” businesses. As I entered the sector, I quickly realized that the capital that had served my former high tech world well was simply not available to businesses that are important, but are not scalable in the same way that most tech is. I realized we could use money much more creatively to make great ideas possible. Innovation happens at the edge, and many of these businesses were innovating, but traditional venture was not appropriate, and neither was philanthropy. We needed alternative investing structures that could span both impact and profit.

How does your fund differentiate itself from traditional funds in the competitive landscape, and how do you plan to leverage these advantages, considering the unique features of a donor-advised fund, to achieve your vision?

Launched in February of 2022, Abundance Capital helps people radically expand the impact they can have on their communities. Using our donor-advised fund platform specializing in Venture Philanthropy, our “Abundance Angels” direct patient, flexible impact investments and grants to help build more equitable and sustainable local economies.

Abundance Angels can use financial returns to reinvest or make grants, stretching the impact of their philanthropy and creating a “ripple effect” for good. This risk-tolerant capital, which taps the generosity and engagement of individuals from all walks of life, works for any impact-driven company or real estate project to help with the cost and flexibility of capital. It is particularly important for underserved communities and socially disadvantaged entrepreneurs who often face high barriers to accessing capital.

What criteria makes an investment opportunity ideal for Abundance Capital?

As a donor-advised fund sponsor (or intermediary), the first thing we need is for a donor to recommend an investment or recoverable grant and to note the impact aspects. We will then review it to make sure that the company meets certain basic legal operating criteria and is indeed committed to one or more of the 17 Global Sustainable Development Goals (SDGs). A wide array of companies have purpose built in to their DNA and so we enjoy the opportunity to help our donors invest in them using this form of renewable philanthropy.

Apart from economic returns, how does Abundance Capital define success within its portfolio?

We measure our success against how the companies are advancing peace, prosperity and equity in their communities and the planet, and are financially sustainable, too.  Ideally, we look at how they are contributing to solutions, whether that be new forms of renewable energy or circular manufacturing, genetic medicine, affordable housing, or other triple bottom line concepts.

When it comes to private investing, what would you say is the most significant challenge or pain point that you encounter?

Our biggest challenge is getting the word out that this type of alternative investing using philanthropy is possible, and accessible for everyone. Secondarily, it is tracking our highly diverse portfolio, but that is where Clockwork helps us!

What are the main risks in the private investing world that your fund is addressing?

The biggest risk that we are addressing is the risk to our communities and planet of the concentration of wealth and capital access while under-resourced communities, entrepreneurs and innovative ideas have trouble accessing the capital to seed, grow and scale their businesses.  Venture Philanthropy is a critical tool to bridge that gap in ways that work for institutions and individuals.

What has been the primary factor(s) influencing your investment decisions in the past years? How do you think these will evolve over the upcoming years?

Like many in the private markets, we are seeing a shift to private debt, perhaps because our tool is so flexible and can be used for equity, debt or any combination thereof. Unlike traditional venture or philanthropy, our Abundance Angels can direct their philanthropic capital to work for the entrepreneur’s needs, rather than be constrained by the limits of a particular private equity fund or venture group.

There is over $230B available and sitting in donor-advised funds in the U.S. We expect that as investors and philanthropists become more aware of how they can use impact investing to solve the world’s most difficult challenges that our sector will continue to grow.

Could you share the best investment lesson you’ve learned during your career?

“Don’t invest anything you aren’t prepared to lose.” You can make quite a lot of money if you invest and reinvest consistently, but risk is always present. The nice thing about donor-advised fund investing is that the source of capital is philanthropic, which means that the financial risk is already removed.

Please leave us a book recommendation.

Adventure Finance: How to create a funding journey that combines profit and purpose; by Aunnie Patton Power.  (https://www.adventure.finance(

What’s your favorite non-business interest or hobby?

I am a competitive sailor. When racing season starts, if you want to meet with me, you’ll have to find me on a boat!

What’s your take on the private market overall?

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