How we work

Optimizing our work for a greater impact

How do we pool and allocate funds for greater impact?

Funded by a wide array of stakeholders, our key funding principles, always in pursuit of impact.

Source of funds

UBS Optimus foundation network:

  • UBS clients - individuals
  • UBS clients - institutions
  • UBS entities
  • UBS employees
  • Recycled capital from social finance
  • Govt. / DFIs

UBS Blended finance ecosystem

UBS matching
UBS covers all our operational cost

How do we approach distributing our funds?

UBS Optimus Foundation always takes an impact-first perspective while deploying capital through a variety of instruments, from traditional grants to direct investments, outcomes contracts and blended finance funds.

How do we approach distributing our funds?

The infographic outlines the foundation's strategies for funding and impact, divided into four sections: Impact Approaches, Funding Methods, Financial Returns, and Partner Archetypes.

Impact Approaches:

  • Philanthropy: Led by UBS Optimus Foundation, aiming for significant social change through grants, endowments, and technical assistance without repayment expectations.
  • Impact-First Investing: Also led by UBS Optimus Foundation, focusing on social and environmental outcomes by investing patient capital in early-stage enterprises with long-term impact potential.
  • Impact Investing: Managed by UBS, seeking measurable positive impacts alongside competitive financial returns.
  • Sustainability-Focused Investment: Managed by UBS, integrating ESG factors to enhance investment performance and achieve sustainability outcomes.

Funding Methods:

  • Ranges from grant-making (no financial returns) to investing (with financial returns).

Financial Returns:

  • Includes non-financial returns (grants), concessional returns (lower financial returns), and market-rate returns (competitive financial returns).

Partner Archetypes:

  • Non-profits (reliant on funding), potentially viable impact enterprises (early-stage), financially viable impact enterprises (sustainable with impact), traditional businesses with intentional impact, and ESG-compliant traditional businesses.

1Disclaimer: Your capital is at your risk. The value of an investment may fall as well as rise and you may not get back the original amount

How do we select impactful programs?

We have a rigorous selection process to ensure that the programs we fund have potential to deliver significant, lasting impact. This helps us engage in the most promising solutions, with tools from giving to investing, that drive meaningful change for the most marginalized.

A man with a camera on a mountain top to represent scalable strategic philanthropy

Scalable

We re backing solutions to improve the lives of children that show the potential to go big and drive systemic, catalytic impact for the most marginalized communities. We believe social finance is at the heart of achieving this, with the ultimate aim of driving more mainstream capital towards an impact economy.

A smartphone and a laptop to represent Evidence-based philanthropy

Evidence-based

Through robust impact evaluations and research, often in collaboration with leading academic institutions, we ensure that funding is directed where it can achieve the best outcomes. This evidencebased approach ensures that our initiatives truly make a difference in improving the lives of children.

A group of people on a beach to represent Collaborative philanthropy

Collaborative

Partnering is vital for effective philanthropy. By pooling resources and working together, we bring the best of the private and public sectors to achieve common goals, ensuring that our collective efforts are more impactful.

A woman looking at skyscrapers through a binocular to represent transparent impact measures

Transparent

We are committed to full transparency in assessing the performance of the programs we support. Using an impact rating tool, we provide clear and accessible insights to ourselves, our partners, donors, and investors. This transparency ensures accountability, fosters trust, and empowers all stakeholders to see the real-world impact of our efforts.

a smiling young man shaking grains representing innovative philanthropy

Innovative

Innovation is at the core of our mission. We continuously explore new approaches to solve problems through design thinking and creative application of knowledge. We draw inspiration from our donors, partners, and the broader community, ensuring that our solutions are informed, imaginative, and practical. By embracing change and encouraging inventive ideas, we aim to push the boundaries of what is possible in philanthropy.

Wind turbines at dusk representing sustainable philanthropy

Sustainable

The solutions we support are designed to strengthen local entities and infrastructure for children, fostering sustainable changes in policy and practice. Each initiative includes a clearly defined exit strategy to ensure longterm viability and succes.

A diver surveying a coral reef in the shallow

How do we measure impact?

We work towards full impact transparency to inform our own decisions as well others. UBS Optimus Foundation's Impact Rating tool ideally allows a comparison with regards to impact across projects, sectors and solutions. It aligns with existing methodologies and synthesises and simplifies the multi-dimensional nature of impact.

Intentionality of Impact

The strategy has a clear ex-ante intention to achieve specific, measurable environmental and/or social outcomes alongside financial returns while minimizing negative outcomes and impact risks.

Alignment with our strategy

  • Aligned with portfolio strategy?
  • Type of outcomes?
  • Suitable for a grant or an investment (e.g. outcome-based USD or social business)?

Level of need

  • Offering a solution to a significant problem?
  • Addressing a gap or need in local or global context?

Inclusion

  • Addressing needs of the most underserved? ​
  • Disaggregated data on inclusion available?

A-B-C

Measurability of Impact

Environmental and/or social outomces would not otherwise occur without the strategy’s deployment.

Program/ Investment design

  • Is the Theory of Change sound?​
  • Evidence-based?​
  • Which assumptions for success?
  • Is it innovative?
  • Are there any negative impacts or is it likely to have unanticipated impacts?

Measurement

  • Robust data processes and systems?​
  • Independent evaluation needed?
  • Feedback loop?

Results and targets

  • Magnitude of impact?
  • Impact metrics? Alignment with standards?
  • Targets for outcomes? Based on what?
  • Which KPIs?

A-B-C

Additionality of Impact

The strategy’s established metrics linked to impact objectives are managed, measured and reported at both the investment and investor level.

Sustainability

  • Potential to be sustained beyond our support? Through which mechanisms?
  • Risks with regards to sustainability?

Scale

  • Potential to be scaled geographically?
  • Through which mechanisms?​
  • Risks with regards to scaling?

Organisational strength and delivery capacity

  • Team talent and experience?
  • Risks to financials or business model?​
  • Organisational gaps?​
  • ESG risks?

UBS Optimus Foundation contribution

  • UBS Optimus Foundation investment? Share of funding? Length of partnership? Non-financial support (e.g. technical assistance)?
  • Pioneering new business model / innovation or regulation

A-B-C

Rating AAA - CCC

How do we partner with others?

We believe that strategic partnerships are key to success and we work collaboratively across sectors and themes. Our partners share a common impact agenda with a clear strategy and approach to achieve it.

Co-create

  • We co-create programs with strategic partners, from ideation to implementation
  • We enhance and complement each other's capacity, funding, expertise, reach and thus, impact

Structure

  • In Social Finance: UBS Optimus Foundation provides expertise to structure direct impact investments, outcomes contracts or other forms of blended finance products
  • As a global Grant Manager: Our network of 12 legal entities across the globe manages complex programs and operations

... or a combination of it

Join forces

  • We join already existing impactful alliances and programs or invite others to join the ones that we are already part of
  • The type and extend of collaboration can vary

Mobilize

  • We mobilize catalytic philanthropic capital or commercial capital
  • We convene donors, investors, implementing organizations, experts and academia, and governments and public funders around specific impact themes