This Major Research Project looks at poverty-reduction approaches in initiatives led by organizations from the private and nonprofit sectors in Peru. Stemming from the investigator’s personal experiences as a designer working in similar projects, as well as the recent decline in Peru’s steady decrease in poverty rates, this investigation sought to gain a deeper and broader understanding on the social, political, and economic factors influencing poverty-reduction initiatives’ capacity to generate impact and achieve long-term sustainability. The research methodology adopted a three-pronged approach: first, a thorough review of literature explored three key areas of poverty and poverty reduction, social innovation, and community-driven practices, all centered around the topic of poverty-reduction initiatives in the private and nonprofit sectors in Peru. Second, a comprehensive mapping and classification exercise examined existing initiatives in order to gauge the current state of poverty-reduction approaches. Third, a more granular exploration of the topic involved in-depth case studies of six poverty-reduction initiatives, three of which involved the investigator’s personal experience. Results of the analysis are presented in the form of three considerations for improving an initiative’s impact and effectiveness, and four guidelines to improve an initiative’s long-term sustainability. Overall findings of the investigation lend support to the idea that the topic remains an underdeveloped field of practice and research, and that it is crucial for an initiative’s success in impact generation and long-term viability to: incorporate a more local and tailored approach, address the specific socio political factors relevant to the beneficiary and the initiative’s designed solution, involve the beneficiaries throughout the design and implementation process, and to define clear objectives for reducing poverty that are coherent with the initiative’s definition of what poverty means.