How Women Use Values and Impact to Drive Their Investment Philosophy

This is the next article in Women Redefining Wealth, a content series from MAI Capital Management that brings together female leaders across wealth management to explore the financial topics that matter most to women today. Each installment drew from real conversations with MAI advisors - on transitions, planning, legacy, and the evolving role of women in wealth.

For many women, investing isn't just about growing wealth - it's about making sure their money is aligned with what they believe in and the kind of world they want to support. Women advisors and investors tend to approach values-based and impact investing less as a niche allocation and more as a core philosophy that shapes the entire portfolio and planning process.

How Women Think About Impact Investing

Women investors tend to be patient, focus on sustained outcomes, and avoid short-term reactions to performance, which aligns well with ESG integration, thematic investing, and private market impact strategies.

According to the "Women Give" research series from Indiana University's Lilly Family School of Philanthropy, women give significantly more than men across nearly every income category. In many cases, women give nearly twice as much, even after controlling for education, income, race, age, and other factors. Prior research in the series looked at how parents pass generosity to sons vs. daughters. The research also examined the intersection of race and gender in giving, finding that generosity is a shared value across communities though single women are consistently more likely to give than single men.

According to Allison Holmes, National Head of Philanthropy & Family Engagement, Managing Director, "Women tend to be more collaborative, so they would be more willing to join a giving group or a giving circle, which is very popular these days in philanthropy."

Allison notes that women want to look at the whole picture of impact investing and are inclined to ask others for input on their giving. "Women tend to want to give the entire mission, vision, and values of their wealth. That includes their investments, that includes their giving," she says. Women look at impact investing holistically, without placing their wealth creation and philanthropy in separate silos.

How Women Think About Impact Vs. Return

Part of investing holistically is having an overarching vision. Allison says, "Let's set up a mission, vision, values for my contribution to this Earth, including financially. It's holistic. And so once I set that True North, then it applies to every single piece that I do. And then impact happens naturally and returns happen naturally because of that focus."

Another way to create a strong impact is to start with strong investment returns. According to Kirsty Peev Senior Portfolio Manager, Managing Director, "What I really like is to make the portfolio as efficient as humanly possible, generating maximum returns for the target level of risk, and with extreme levels of tax efficiency, with the end goal that then there is more to give."

Based on a strong financial foundation, Kirsty says the next step is working with an expert in philanthropic giving to map out the different ways to make an impact with your dollars. "I understand that your values must be a part of your portfolio, but I feel like one alternative way to look at it is to make as much as you humanly possibly can within the risk levels and then direct those dollars tax efficient and bottom line, make them work," she adds.

A Vision For Impact Investing

For impact investing, women need to have a vision as they develop their wealth. The vision should include the impact they want to make, and how they want to make the world a better place.

This kind of values-driven vision often starts with family. According to Danielle Cooper, Senior Wealth Advisor, Managing Director, the question her clients most often return to isn't about allocation - it's about identity. "I can think of a family foundation I work with where the driving factor is what values their children will take up," she says. "I think that's because it is a woman-led initiative, it's her family's inheritance she's passing on. And she wants to see the next generation develop their own values."

According to Allison, "We cannot just make money for money's sake. We have to consider what's happening in the world around us and invest in a way that we're doing the best financially for our clients and as much as we can to better the world."

Impact isn't just about writing a check. Allison recalls a former boss who told her that there aren't enough zeroes to put on a check to solve all the world's problems. "So when you think about giving, you think about how to give creatively, how to use public-private partnerships and talk to your advisor about ideas because it's a creative act," she says.

Financial Advisors Need Impact Investing Expertise

Clients now expect their investment advisors to have expertise in values-based and impact investing. Allison believes that the emergence of Donor Advised Funds (DAF) sparked clients' interest in having conversations and planning around philanthropy. A DAF lets you make a charitable contribution, receive the tax deduction, and decide later which charities receive the money.

Allison notes that because investors get immediate tax rate efficiency, they'll make the contribution and defer decisions on specific charitable contributions. "The fact that so many millions of dollars is sitting in DAFs right now and not being deployed is really speaking to how much clients are asking for some advice in that area and helping them organize," she adds.

Clients will seek investment advisors who can help with decisions on philanthropic investment vehicles, such as donor advised funds (DAF) vs. private foundations. While the convenience of DAFs made them a popular vehicle, a foundation may have benefits in certain scenarios. Foundations have IRS oversight and require a Board. According to Allison, "If you decide you want to start a foundation, there are so many things you can do. It's not just granting to a nonprofit and leaving at that. You can start a public-private partnership. You can work with your children and grandchildren on a real family legacy."

Values-based and impact investing creates a clear connection between wealth and purpose. Women who want their financial decisions to reflect what matters most to them will look beyond individual investments to consider the broader role their wealth can play. With a defined vision and the right planning, investing and philanthropy can co-exist holistically to drive maximum, values-based impact.

This content is for informational and discussion purposes only and does not represent investment, legal or tax advice. Consult your investment, legal or tax professional.

MAI Capital Management, LLC ("MAI") is an investment adviser registered with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training.