I don’t like the way this question is posed: If someone has $1,000, is it better used as an investment in a socially responsible fund, or as a donation to a non-profit?
Non-profits aren’t going to be part of the stock exchange. Yes, you might want to vet the companies you invest in, but in most cases you’re going to be looking at whether or not they have ethical business practices, not at the core mission of the company.
A donation to a non-profit is a charitable gift. You should vet non-profits as well to make sure they’ll make the best use of the gift, but the point of the donation is to support the work. The return on a donation is non-monetary.
I’d be skeptical of socially responsible funds, particularly if they have high fees, and especially if they’re trying to convince you that investing is just like charity. Total marketing gimmick.
