Impact investing requires balancing financial returns with meaningful outcomes for children, families and communities. This report introduces a decision-making tool — developed by the Annie E. Casey Foundation — to help funders assess and compare investment opportunities with clarity and consistency.
The tool is a culmination of more than 25 years of lessons and expertise in impact investing. Since 1998, the Foundation has committed $350 million to more than 130 impact investments supporting affordable housing, job creation and community development nationwide.
The framework evaluates investments across three weighted levels:
The tool scores opportunities across 10 criteria, and this approach allows funders to systematically compare investments and prioritize options with the greatest potential for both financial and social returns.
This report walks users through how to apply the tool — from initial screening to due diligence and ongoing monitoring. It includes a pair of practical worksheets and real-world examples to help investors:
By combining qualitative insights with quantitative analysis, the tool supports impact investing decisions that are more disciplined, transparent and effective.
This decision-making tool gives funders a clear, repeatable method to evaluate impact investments. By applying 10 criteria across mission alignment, financial strength and strategic priorities, investors can better balance risk, return and social impact—leading to stronger, more informed investment decisions that advance outcomes for children and families.
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