Causeway: MEIA Orienatation - 070625
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Causeway: MEIA Orienatation - 070625



Causeway presentation given by Michael Lewkowitz

Causeway presentation given by Michael Lewkowitz



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Causeway: MEIA Orienatation - 070625 Causeway: MEIA Orienatation - 070625 Presentation Transcript

  • CAUSEWAY a national collaboration Social Finance Orientation MEIA Presentation June 27, 2007 Prepared by: Michael Lewkowitz, start-up coordinator [email_address] -:- 416.607.5643
    • The sustainable flow of financial capital from sources to public benefit uses:
      • Affordable Housing
      • Bottom of the Pyramid
      • Clean Technology
      • Community Development
      • Education
      • Fair Trade
      • Green Building
      • Health
      • Media
      • Microfinance
      • Social Enterprise
      • Technology
      • Disability Supports
    What is “social finance”? Individuals Organizations Government
  • How does capital flow?
    • From the source
    • Into an organization
    • For use in either
    Financial Entities - managing other’s money Government Organizations Individuals Operations Programs Assets INVEST TAX DIRECT
  • Collaborative approaches and blended returns
    • Growing social and environmental pressures + government and market failure = the conditions for innovation
    Canadian non-profit income sources
  • Fields of innovation in social finance
    • Blended Returns
      • Spanning the continua of risk/return/focus
      • Includes MBI and PRI
        • Well developed in the United States
      • Social venture capital
        • A focus on the ‘hybrid’ universe
        • Well developed in the UK including ‘Community Interest Company’ legal structure and marketplace
    • Collaborative approaches
      • Complex requirements
      • Large asset classes
        • Affordable Housing
        • Community Energy and Efficiency
  • Provocative examples
    • Venture capital
      • Capital regional et coopérative Desjardins (CRCD ) is a $500 million venture capital fund created in 2001 by the Desjardins Movement with the help of a provincial tax credit . Individual investors can invest up to $3500 a year in shares with a 50% tax credit. Shares must be kept for a minimum of seven years. M ission : to provide capital, expertise and access to networks for businesses and cooperatives in all Québec’s regions
    • Local community development
      • The Columbus Foundation used $2 million to seed an $18 million low-cost housing fund to build 1,600 new units of affordable housing.
    • Startup or expansion capital in underserved communities
      • Deutsche Bank announced it will create an innovative $20 million investment fund to finance the expansion of eye care hospitals in developing countries. The Eye Fund I will provide loans and guarantees to support the development of affordable, sustainable and accessible eye care for the world's poor while providing a near-market return for investors
    • Debt mechanisms
      • Milestone achievement of $100m in loans to community finance institutions and social enterprises by Calvert Foundation’s Community Investment Note
    • Acquisition of assets
      • BC Pension Funds – 21 BC-based union and management pension funds pooled $27 M to form Concert Properties in 1989 (originally named VLC) with the objective of financing affordable rental housing in BC, and creating jobs in the unionized construction industry. Today the 100% pension plan owned real estate corporation has $800 million in assets , with a track record of creating 10 million hours of on-site employment for unionized construction workers.
  • The social finance conversation
    • Aligning interests to create innovative solutions
    Risk Restrictions Requirements Return Source Perspective Use Perspective Constructive Dynamic Constrictive Dynamic
  • Exampl e: Great Bear Rainforest
    • $120 million private-public fund conservation fund
    • Requirements
      • Comprehensive ecosystem-based community perspective
      • Conservation + culture + commerce…
    • Restrictions
      • Brought parties together to develop the model
      • Included key stakeholders from the outset
    • Risk
      • Shared risk between private and public investors
      • Building community’s stewardship capacity
    • Return
      • Seeking a sustainable, blended return for the region
      • Exploring venture returns
  • Example : Disability Savings
    • Federal program including DS Plan, Grant, and Bond.
    • Requirements
      • Deeply understood the funding requirements and need to broaden the community of funders
    • Restrictions
      • Worked within the existing tax framework and familiar models
      • Expanded ability for people to participate
    • Risk
      • Reduced risk of the primary investor (government) by encouraging private individual investment
    • Return
      • Created a return incentive to encourage others to participate
  • Example: P roposed Vancouver Homelessness LP
    • from Vancouver Homelessness Funding Model Report
  • CAUSEWAY a national collaboration A national collaboration working on new pathways for financial investment in public benefit .
  • CAUSEWAY a national collaboration Michael Lewkowitz Start-up Coordinator Phone: (416) 607-5643 (778) 329-0021 Email: [email_address] Tim Draimin Chair, Steering Committee Phone: (604) 647-6611 x244 (416) 481-8652 Email: [email_address] CONTACT Volunteer Contributor Jenny Zhu: