Impact investing is the practice of making investments that generate measurable social and environmental impact alongside financial returns. It represents a growing movement of investors who believe that capital can and should be a force for good.

This guide will walk you through the fundamentals of impact investing, help you understand the landscape, and provide practical steps for getting started -- whether you have $100 or $100,000 to invest.

Understanding the Spectrum: Impact investing exists on a spectrum from "ESG integration" (considering environmental, social, and governance factors in traditional investment analysis) to "impact-first" investing (accepting below-market returns for greater impact). Understanding where you sit on this spectrum will help guide your investment choices.

Setting Your Impact Thesis: Before investing, clarify what types of impact matter most to you. Are you passionate about climate solutions, food systems, affordable housing, financial inclusion, or something else? Your impact thesis will guide your investment decisions.

Investment Vehicles: Impact investments are available across asset classes including public equities (through ESG-screened funds), fixed income (green bonds, community development notes), private equity (impact venture funds), real assets (sustainable real estate, farmland), and direct investments (community loan funds, CDFIs).

Due Diligence: Impact investments require both financial and impact due diligence. Learn to evaluate impact claims critically using frameworks like the Impact Management Project (IMP) dimensions, IRIS+ metrics, or the SDG framework.

Getting Started: - Move your cash savings to a community development bank or credit union - Invest in ESG-screened index funds through your brokerage account - Purchase community investment notes from organizations like Calvert Impact Capital - Explore impact-focused robo-advisors for automated portfolio management - Join an impact investing circle to learn from experienced investors

Remember that every investment decision is an impact decision. By intentionally aligning your capital with your values, you join a growing movement reshaping the financial system.