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nature finance·7 min read

how foundations can invest endowments in nature — without buying land

natural capital instruments for mission-aligned endowment allocation

Your foundation's mission is environmental. Your grantmaking funds conservation, restoration, and climate work. But your endowment? It's invested in the same index funds as everyone else.

You've looked at the options. ESG funds that tilt toward less-bad companies. Impact investments that promise returns and impact but often deliver neither at scale. Direct land purchases that lock up capital and require management expertise you don't have.

There's a gap between what you fund and what you invest in. And it's not for lack of wanting.

the endowment alignment problem

Environmental foundations face a structural contradiction:

ActivityTypical Approach
GrantmakingFund conservation, restoration, climate solutions
EndowmentInvest in conventional equities, bonds, alternatives

The endowment often includes exposure to the very industries the grantmaking opposes. Even "responsible" allocations tend toward:

  • ESG-screened funds that exclude the worst actors but don't fund nature
  • Green bonds that fund corporate projects, not ecosystems
  • Impact investments with long lockups and uncertain outcomes
  • Timber and farmland that require operational expertise

What was missing—until now: liquid, institutional-grade instruments that directly fund natural capital.

why traditional options fall short

OptionLimitation
ESG fundsNegative screening, not positive nature exposure
Green bondsUse-of-proceeds reporting, not verified outcomes
Carbon creditsStacking fragmentation, verification concerns, illiquid
Conservation landIlliquid, management-intensive, concentrated risk
Timber REITsCommodity exposure, not conservation outcomes
Impact PE/VCLong lockups, J-curve, uncertain exits

Foundations want:

  • Liquidity for rebalancing and spending policy
  • Diversification across geographies and ecosystem types
  • Verified outcomes, not just use-of-proceeds
  • Returns that support the spending rate
  • Alignment with mission at the asset level

Until now, no instrument delivered all of this. Now one exists.

ensurance instruments for endowments

Ensurance creates a new asset class: instruments backed by real natural capital with verified ecological outcomes.

general ensurance coins

General ensurance coins like $ENSURE are liquid, tradable instruments that fund ecosystem protection across the protocol.

CharacteristicWhat It Means for Endowments
LiquidTrade anytime, rebalance as needed
DiversifiedExposure across 15 ecosystem types, 19 services
TradableActive markets, price discovery
Mission-alignedEvery trade funds natural capital protection
TransparentOnchain tracking of all fund flows

Coins provide broad natural capital exposure without the illiquidity of direct land ownership. Trading activity generates proceeds that flow to designated beneficiaries.

specific ensurance certificates

Specific certificates are tied to individual natural assets — named places you can visit.

CharacteristicWhat It Means for Endowments
Place-basedSpecific watersheds, forests, wetlands
Yield-bearingOngoing returns from protocol rewards
Verified outcomesMRV documentation of ecological health
Story-readyReport on specific assets to board and donors
TradableSecondary market liquidity

Certificates turn cost into investment — they're tradable and yield-bearing, providing ongoing returns while funding specific natural assets.

portfolio construction

A foundation endowment might allocate:

AllocationInstrumentPurpose
60%General ensurance coinsBroad, liquid natural capital exposure
30%Specific certificatesTargeted allocation to priority ecosystems
10%Agents/syndicatesDirect participation in stewardship

This provides diversification, liquidity, yield, and mission alignment — the combination traditional options couldn't deliver.

PRI-eligible natural capital strategies

For foundations that make program-related investments (PRIs), ensurance offers structured opportunities beyond traditional grants:

PRIs as underwriters

The most powerful PRI application: invest directly into natural asset acquisition as an underwriter.

ComponentHow It Works
InvestmentPRI capital funds natural asset acquisition or restoration
SecurityInvestment is secured by the real asset itself
RepaymentEnsurance premiums fund repayment over the policy period
ExitAt policy end, natural asset moves to ENTRUST (permanent protection)

This isn't a grant that disappears. It's a secured investment with a clear repayment mechanism and a defined outcome: permanence.

other PRI structures

  • Below-market certificates — Concessionary terms for priority conservation
  • Syndicate participation — Catalytic capital for restoration projects
  • Agent funding — Support ongoing stewardship of protected lands

PRIs through ensurance count toward payout requirements while building the natural capital infrastructure that supports your grantmaking.

how to get started

for investment committees

  1. Review current exposure — What natural capital exposure (if any) exists in your portfolio?
  2. Define allocation target — What percentage should align with environmental mission?
  3. Select instruments — Coins for broad exposure, certificates for targeted allocation
  4. Establish custody — Ensurance instruments are standard ERC-20/ERC-1155 tokens
  5. Integrate reporting — Onchain data feeds into impact reporting

for program staff

  1. Identify synergies — Which grantees work in areas where certificates exist?
  2. Coordinate funding — Grants + endowment investment in the same ecosystems
  3. Leverage MRV — Shared monitoring across grant and investment activities

for boards

  1. Understand the instruments — Coins, certificates, agents, proceeds
  2. Approve policy — Natural capital allocation within investment policy statement
  3. Monitor outcomes — Ecological and financial performance together

existing instruments are available now

No lead time. No development period. Invest today.

frequently asked questions

what's the expected return?

Returns come from protocol activity (trading fees, proceeds distribution) and potential appreciation. Like any emerging asset class, returns are uncertain but the underlying value is real natural capital with measurable ecological production.

how do we custody these assets?

Ensurance instruments are standard Ethereum tokens. Any institutional crypto custody solution works. We can recommend custodians experienced with foundations.

is this appropriate for a perpetual endowment?

Yes. The instruments are designed for long-term holding. Proceeds and yields support spending policy. The underlying assets — ecosystems — are inherently long-duration.

how do we report this to the IRS?

Ensurance instruments are treated as property for tax purposes. Consult your tax advisor for specifics on your foundation's situation. We can provide transaction records and valuation data.

can we make grants in ensurance instruments?

Yes. You can grant coins, certificates, or fund agents directly. Some foundations are exploring grants that include both cash and ensurance instruments.

what if the crypto market declines?

Ensurance instruments have value from underlying natural capital, not just crypto market sentiment. In a broad crypto decline, natural capital exposure may actually provide diversification benefit.

the bottom line

Your foundation exists to protect nature. Your endowment should too.

For decades, there was no way to invest in nature at institutional scale without buying land. That's changed. Ensurance creates liquid, diversified instruments backed by real natural capital — with certificates that are yield-bearing and tradable, turning what was once cost into investment.

The alignment gap between your mission and your endowment can finally close.


related reading:

Explore general ensurance coins →

See specific certificates →

Talk to someone about foundation investment →

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