![Past [Photo by h.koppdelaney] (CC BY-SA 3.0)](http://farm4.static.flickr.com/3484/3255695493_3c3ce9792e.jpg)
Impact investing differs from philanthropy because it tries to come up with ways to measure how well private money is being spent.
Many people feel that their charity dollars are having a limited impact or being wasted, and impact investing can provide more measurable proof. The system is still evolving, and it’s likely that a rating agency that grades projects in much the same way that Moody’s rates bonds will be introduced in the near future.
It has been estimated that up to $1 trillion in capital could flow into areas like housing or rural water delivery over the next decade, generating $183 billion to $667 billion in profits for investors. The people who control large pools of investment capital are used having results measured, and anything that can be done to encourage them to spend more to help those who need it is useful and worth pursuing.
Impact investing is fast becoming its own asset class in the world of international finance.
The Future of Impact Investing http://goo.gl/fb/kVvke #socent