Daven Tamayo

'Impact investing' moves beyond startups and into communities

People walk on a rainy Thursday afternoon in the Ortigas Business District on June 27, 2019. George Calvelo, ABS-CBN News

Article (news)

Raine Musñgi

ABS-CBN News

<p>MANILA — For years, impact investing has largely been associated with startups that promise both financial returns and measurable social good. Now, a Philippine initiative is applying the same investment mindset to community development, treating youth-led social projects less like charity and more like ventures that can be funded, mentored, measured and scaled.</p><p>The Impact Challenge, organized by the Rotary Club of San Juan Supreme, borrows familiar concepts from venture capital and startup accelerators: competitive pitching, seed funding, expert mentorship, execution within a fixed timeline, and performance measured by outcomes instead of intentions.</p><p>Rather than simply awarding grants, organizers selected seven winning teams from hundreds of applicants nationwide, gave each project P100,000 in seed funding, paired participants with mentors, and required them to deliver measurable community results in about 70 days before returning to present what worked, what failed, and what they learned.</p><p>For Josh Santos, Charter President of the Rotary Club of San Juan Supreme, that accountability is what separates sustainable impact from traditional philanthropy.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/P4PLiCw1Hb4?&amp;list=PLm34qRgqWBU6TBYVPvgHTQWI2lYLCwbTM&amp;index=1&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>&quot;The problem is not the youth. The problem is not the trust. The problem is that they just want to spend and not have a follow-through. Because in the end, this is a partnership.&quot; </p><div><br/></div><div><strong>From donations to measurable outcomes</strong></div><p>Corporate giving has increasingly evolved from one-time charitable donations into long-term investments with measurable environmental and social outcomes.</p><p>Globally, the Global Impact Investing Network (GIIN) estimates the impact investing market now exceeds US$1.5 trillion in assets under management, while companies continue integrating ESG principles into business strategy and capital allocation.</p><p>In the Philippines, publicly listed companies are also expanding sustainability reporting under the Securities and Exchange Commission&#x27;s Sustainability Reporting Guidelines, while more firms are embedding social impact into their long-term corporate strategy instead of treating CSR as a standalone activity.</p><p>Santos believes community organizations should be evaluated with the same discipline businesses apply to investments.</p><p>&quot;How can you be able to see if they can make it or this idea can be delivered if you don&#x27;t trust them? But at the same time, it is our responsibility to mentor them, to make sure that the project will see through.&quot; </p><p>Instead of simply releasing funds, Rotary members visited project sites throughout implementation, providing guidance while allowing the youth teams to lead execution.</p><p>&quot;We just wanted to be there,&quot; Santos said.</p><p>&quot;It&#x27;s our responsibility to help them also.&quot; </p><div><br/></div><div><strong>Communities as innovation labs</strong></div><p>Among the projects funded was SugKusug Hub, a community rehabilitation program that delivers therapy services directly to underserved communities while training caregivers and local governments to sustain treatment after volunteers leave.</p><p>Grand winner Jacob Dolino said the project was inspired by his work as a healthcare professional and by watching a family member struggle to access rehabilitation after developing a neurological condition.</p><p>&quot;The prognosis went bad, not because the care was impossible, but because the treatment was inaccessible.&quot; </p><p>Rather than focusing only on treatment, the project combines rehabilitation, caregiver education, referrals and local capacity-building to create a system that can continue operating beyond the initial intervention.</p><p>The approach reflects what many impact investors now describe as systems change, creating sustainable solutions instead of temporary assistance.</p><div><br/></div><div><strong>Why businesses may want to pay attention</strong></div><p>For Santos, the lesson extends beyond nonprofit organizations.</p><p>He believes companies can unlock more innovation by applying the same investment principles to young social entrepreneurs.</p><p>&quot;If they don&#x27;t look into this, they are missing a lot.&quot; </p><p>The issue, he said, is not whether young people can deliver.</p><p>&quot;The problem is not the youth... The problem is that they just want to spend and not have a follow-through.&quot; </p><p>Dolino echoed that message, urging business leaders to view young Filipinos as partners rather than beneficiaries.</p><p>&quot;For the CEOs, there&#x27;s a lot of great ideas in our youth. Maybe we could open some doors for them. With proper guidance and proper structure, we can make really great things happen.&quot; </p><p>As companies continue searching for more measurable ways to deliver social impact, initiatives like the Impact Challenge suggest that the next frontier of impact investing may not be confined to startups alone. It may also be found in communities, where ideas are abundant, but capital, mentorship and trust remain the missing ingredients.</p>

<p>The Impact Challenge, organized by the Rotary Club of San Juan Supreme, borrows familiar concepts from venture capital and startup accelerators.</p>

The Impact Challenge, organized by the Rotary Club of San Juan Supreme, borrows familiar concepts from venture capital and startup accelerators.