Investor, Author, Podcast Host and TEDx Speaker Marcia Dawood on “Doing Good” Through Philanthropic Investments
In this edition of the Female Founder & Investor Interview Series, we feature Marcia Darwood. Marcia is a renowned early-stage investor and influential leader in the investment community. She serves on the Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee and is a venture partner with Mindshift Capital, as well as a member of Golden Seeds. As Chair Emeritus of the Angel Capital Association (ACA), Marcia has made significant contributions to the global angel investing network. She is also an associate producer of the award-winning documentary Show Her the Money, a TEDx speaker, and the host of The Angel Next Door podcast.
Marcia’s investment portfolio includes over fifty early-stage companies and funds, with a focus on promoting diversity and supporting solutions to major global issues such as hunger, clean water, medical advancements, and climate change. She is the founding member and chair of the ACA’s Growing Women’s Capital Group, which encourages collaboration among U.S. investment groups centered on women-led businesses. Marcia is the co-author of the bestselling book You Can, You Will, and her latest publication, Do Good While Doing Well, along with its official workbook, offers insightful guidance on impactful investing for those seeking to make a meaningful difference but don’t now where to begin.
Let’s walk with Marcia to learn about her journey as a successful angel investor.
What Inspired You to Become an Angel Investor Supporting Women Entrepreneurs & Companies That Do Good?
I became an angel investor in 2012 after being invited to a local angel group meeting in Pittsburgh, PA. At the time, I had no idea what angel investing was, but I was captivated by the incredible innovations being developed by entrepreneurs right in my community. It wasn’t long before I realized how underfunded female founders were, despite the scalable and impactful businesses they were building.
Initially, I didn’t think I could be an angel investor—I assumed it was only for the wealthy and well-connected. I wondered what I could possibly offer to early-stage companies. But I quickly learned that everyone has something unique to bring to the table, whether it’s expertise, connections, or simply opening doors that can help startups thrive.
What really drew me in were the companies focused on making a positive impact on people and the planet. These startups had the potential to grow and scale in ways nonprofits often couldn’t, and they were able to access grants and other forms of funding to accelerate that growth. The idea of supporting businesses that could create real change while also offering the possibility of financial and emotional returns was compelling—and I was all in.
What Are the Benefits of Harnessing Charitable Capital for Investing in for-Profit Businesses?
Harnessing charitable capital for investing in for-profit businesses creates a powerful alignment between financial returns and social impact, bridging the gap between philanthropy and entrepreneurship. By leveraging charitable funds— such as those in Donor- Advised Funds (DAFs) or through a non-profit like Inspire Access—investors can back innovative startups tackling critical social and environmental challenges.
Here’s how it works:
Funds designated for eventual donation to a 501(c)(3) can be placed into a DAF, allowing the donor to receive a tax deduction as usual. However, instead of directly funding a 501(c)(3), these funds are invested in a for-profit company that aligns with the donor’s values. If the investment yields returns, the money flows back into the DAF, where the donor can choose to reinvest it into another mission-driven company or direct it to a 501(c)(3). Importantly, the funds cannot be returned to the donor personally.
This innovative approach expands funding opportunities for businesses led by underrepresented founders or those focused on impactful solutions that might otherwise struggle to attract traditional investment. Moreover, it diversifies the capital available to entrepreneurs, fostering a more inclusive and dynamic ecosystem capable of driving meaningful change on a larger scale. Ultimately, this strategy empowers investors to make a positive difference in the world while participating in the growth and success of transformative businesses.
Do Philanthropic Investments in for-profit Businesses Create a Slippery Slope Where Social Missions Are Compromised for Financial Gain, Ultimately Diluting an Investor’s Social Purpose?
When done thoughtfully, philanthropic investments in for-profit businesses don’t necessarily create a slippery slope, but rather present an opportunity to amplify both financial and social returns. The key lies in setting clear expectations from the beginning—investors must ensure that the companies they support are truly mission-driven and committed to creating social impact, not just profit.
With tools like Donor-Advised Funds (DAFs), the intent is not to dilute the social mission but to extend the reach of philanthropic capital into ventures that might offer scalable, sustainable solutions to global challenges. Investors are empowered to select businesses whose missions align with their values, and the structure of philanthropic investing—where returns go back into charitable funds— ensures that the primary goal remains impact-focused and can produce even more dollars to go into charities in the future.
Transparency and accountability are critical in this space. By prioritizing impact alongside financial returns, investors can mitigate the risk of mission drift and foster a new wave of businesses that drive meaningful change while maintaining profitability.
Does This Undermine the Traditional Nonprofit Sector by Competing for the Same Resources?
Philanthropic investing in for-profit businesses doesn’t necessarily undermine the traditional nonprofit sector; rather, it complements and broadens the scope of how capital can be used to drive social change. While it may seem like for-profit impact investments are competing for the same resources, they actually expand the range of opportunities for donors to create change. This approach allows charitable capital to flow into innovative, scalable solutions that nonprofits may not be equipped to tackle effectively, particularly in areas like technology, renewable energy, or other sectors where entrepreneurship plays a key role.
In fact, philanthropic investments can help strengthen the ecosystem as a whole. Returns from these investments often flow back into DAFs, which are still earmarked for charitable purposes. This creates a cycle where the same funds can be reinvested multiple times into for-profit ventures or traditional nonprofits. By bringing more players into the mix and leveraging for-profit business models to address societal challenges, we can create a more diverse, resilient ecosystem that works alongside traditional nonprofits rather than competing with them.
What Are the Impacts on Entrepreneurs?
From an investment standpoint, the DAF shows up on an equity ownership table or cap table, as it is called, just like any other investor. The donor can still be involved with the company if they choose to but the gains from any returns will not go back to them.
What Advice Would You Give Aspiring Women Entrepreneurs Looking to Attract Investment and Build Successful, Impactful Businesses?
My advice to aspiring women entrepreneurs is to stay bold and persistent and remember that your unique perspective is a strength. First, know your numbers inside and out— investors want to see that you deeply understand your business model, market, and financial projections. But equally important is your story: investors are drawn to founders who can clearly articulate their vision and the impact they want to make.
Building relationships is key. Don’t be afraid to network, seek mentors, and align yourself with other female founders and investors. Communities like angel groups or crowdfunding platforms can be incredible resources, especially as more focus is placed on supporting underrepresented founders.
Lastly, don’t undersell yourself or your value. Women often hesitate to ask for the funding they need, or they ask for less than they deserve. Aim high and don’t be afraid to advocate for yourself. Surround yourself with people who believe in your vision and most importantly, believe in your own ability to build something great.
What Are 3 Tips for Women Interested in Investing Charitable Funds in for-profit Businesses?
1. Leverage Donor-Advised Funds
DAFs are a great way to pool charitable dollars and strategically invest them in for-profit businesses with a social mission. By using a DAF, you receive the tax benefits of charitable giving while having the flexibility to invest in businesses that align with your philanthropic goals. Just remember, any returns generated from these investments must stay in the DAF and be used for future charitable endeavors or given to nonprofits.
2. Explore Platforms Like Inspire Access
Check out Inspire Access, a platform that connects underrepresented founders and mission-driven startups with investors looking to make both a social and financial impact. It’s a valuable tool for women interested in investing in for-profit ventures that are not only scalable but also work toward solving global challenges. This kind of platform helps you discover businesses aligned with your values and amplifies your ability to drive meaningful change.
3. Set Clear Impact Goals
Before investing, define the kind of social impact you want to see from the businesses you support. This could include goals around sustainability, gender equality, healthcare access, or education. Setting clear impact goals ensures that your investments are aligned with your broader philanthropic vision and helps you track whether the companies you’re investing in are delivering on their promises to drive meaningful change.
To learn where to start and how to set philanthropic investment goals check out marcia’s new book—Do Good While Doing Well — and its official workbook of the same title.
