The fundraising climate for nonprofits is often challenging due to struggles like donor fatigue, growing competition for the same resources, and limited funding as government and philanthropic contributions stagnate or decline. At the same time, impact investing is experiencing rapid growth, with investors looking far and wide to find investable opportunities.

The convergence of these two trends has led many nonprofits to consider impact investing as a sustainable financing alternative—although in many cases, nonprofits do not make for natural or ready investment candidates. Put simply, most are not structurally or culturally set up to receive return-seeking investment, nor do they have the resources or networks to pursue it.

This is the case in one of the most challenging areas of international development: global health research and development (R&D), a market in which the Bill & Melinda Gates Foundation plays an active role and which Tideline has been researching with the foundation’s support.However, on closer inspection it’s clear that, even in global health R&D, there may be more potential for investing in nonprofit organizations than meets the eye.

Read more: Pushing the Boundaries of Impact Investing | Stanford Social Innovation Review