CAUSEWAY  a national collaboration Social Finance Orientation MEIA Presentation June 27, 2007 Prepared by: Michael Lewkowi...
<ul><li>The sustainable flow of financial capital  from sources to public benefit uses: </li></ul><ul><ul><li>Affordable H...
How does capital flow? <ul><li>From the source </li></ul><ul><li>Into an organization </li></ul><ul><li>For use in either ...
Collaborative approaches and blended returns <ul><li>Growing social and environmental pressures  +   government and market...
Fields of innovation in social finance <ul><li>Blended Returns </li></ul><ul><ul><li>Spanning the continua of risk/return/...
Provocative examples <ul><li>Venture capital </li></ul><ul><ul><li>Capital regional et coopérative Desjardins (CRCD ) is a...
The social finance conversation <ul><li>Aligning interests to create innovative solutions </li></ul>Risk Restrictions Requ...
Exampl e: Great Bear Rainforest <ul><li>$120 million private-public fund conservation fund </li></ul><ul><li>Requirements ...
Example :  Disability Savings <ul><li>Federal program including DS Plan, Grant, and Bond. </li></ul><ul><li>Requirements <...
Example:  P roposed Vancouver Homelessness LP <ul><li>from Vancouver Homelessness Funding Model Report </li></ul>
CAUSEWAY  a national collaboration A  national   collaboration working on  new   pathways for  financial   investment in  ...
CAUSEWAY  a national collaboration Michael Lewkowitz Start-up Coordinator Phone: (416) 607-5643 (778) 329-0021 Email: [ema...
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Causeway: MEIA Orienatation - 070625

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Causeway presentation given by Michael Lewkowitz

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Causeway: MEIA Orienatation - 070625

  1. 1. CAUSEWAY a national collaboration Social Finance Orientation MEIA Presentation June 27, 2007 Prepared by: Michael Lewkowitz, start-up coordinator [email_address] -:- 416.607.5643
  2. 2. <ul><li>The sustainable flow of financial capital from sources to public benefit uses: </li></ul><ul><ul><li>Affordable Housing </li></ul></ul><ul><ul><li>Bottom of the Pyramid </li></ul></ul><ul><ul><li>Clean Technology </li></ul></ul><ul><ul><li>Community Development </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Fair Trade </li></ul></ul><ul><ul><li>Green Building </li></ul></ul><ul><ul><li>Health </li></ul></ul><ul><ul><li>Media </li></ul></ul><ul><ul><li>Microfinance </li></ul></ul><ul><ul><li>Social Enterprise </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Disability Supports </li></ul></ul>What is “social finance”? Individuals Organizations Government
  3. 3. How does capital flow? <ul><li>From the source </li></ul><ul><li>Into an organization </li></ul><ul><li>For use in either </li></ul>Financial Entities - managing other’s money Government Organizations Individuals Operations Programs Assets INVEST TAX DIRECT
  4. 4. Collaborative approaches and blended returns <ul><li>Growing social and environmental pressures + government and market failure = the conditions for innovation </li></ul>Canadian non-profit income sources
  5. 5. Fields of innovation in social finance <ul><li>Blended Returns </li></ul><ul><ul><li>Spanning the continua of risk/return/focus </li></ul></ul><ul><ul><li>Includes MBI and PRI </li></ul></ul><ul><ul><ul><li>Well developed in the United States </li></ul></ul></ul><ul><ul><li>Social venture capital </li></ul></ul><ul><ul><ul><li>A focus on the ‘hybrid’ universe </li></ul></ul></ul><ul><ul><ul><li>Well developed in the UK including ‘Community Interest Company’ legal structure and marketplace </li></ul></ul></ul><ul><li>Collaborative approaches </li></ul><ul><ul><li>Complex requirements </li></ul></ul><ul><ul><li>Large asset classes </li></ul></ul><ul><ul><ul><li>Affordable Housing </li></ul></ul></ul><ul><ul><ul><li>Community Energy and Efficiency </li></ul></ul></ul>
  6. 6. Provocative examples <ul><li>Venture capital </li></ul><ul><ul><li>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 </li></ul></ul><ul><li>Local community development </li></ul><ul><ul><li>The Columbus Foundation used $2 million to seed an $18 million low-cost housing fund to build 1,600 new units of affordable housing. </li></ul></ul><ul><li>Startup or expansion capital in underserved communities </li></ul><ul><ul><li>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 </li></ul></ul><ul><li>Debt mechanisms </li></ul><ul><ul><li>Milestone achievement of $100m in loans to community finance institutions and social enterprises by Calvert Foundation’s Community Investment Note </li></ul></ul><ul><li>Acquisition of assets </li></ul><ul><ul><li>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. </li></ul></ul>
  7. 7. The social finance conversation <ul><li>Aligning interests to create innovative solutions </li></ul>Risk Restrictions Requirements Return Source Perspective Use Perspective Constructive Dynamic Constrictive Dynamic
  8. 8. Exampl e: Great Bear Rainforest <ul><li>$120 million private-public fund conservation fund </li></ul><ul><li>Requirements </li></ul><ul><ul><li>Comprehensive ecosystem-based community perspective </li></ul></ul><ul><ul><li>Conservation + culture + commerce… </li></ul></ul><ul><li>Restrictions </li></ul><ul><ul><li>Brought parties together to develop the model </li></ul></ul><ul><ul><li>Included key stakeholders from the outset </li></ul></ul><ul><li>Risk </li></ul><ul><ul><li>Shared risk between private and public investors </li></ul></ul><ul><ul><li>Building community’s stewardship capacity </li></ul></ul><ul><li>Return </li></ul><ul><ul><li>Seeking a sustainable, blended return for the region </li></ul></ul><ul><ul><li>Exploring venture returns </li></ul></ul>
  9. 9. Example : Disability Savings <ul><li>Federal program including DS Plan, Grant, and Bond. </li></ul><ul><li>Requirements </li></ul><ul><ul><li>Deeply understood the funding requirements and need to broaden the community of funders </li></ul></ul><ul><li>Restrictions </li></ul><ul><ul><li>Worked within the existing tax framework and familiar models </li></ul></ul><ul><ul><li>Expanded ability for people to participate </li></ul></ul><ul><li>Risk </li></ul><ul><ul><li>Reduced risk of the primary investor (government) by encouraging private individual investment </li></ul></ul><ul><li>Return </li></ul><ul><ul><li>Created a return incentive to encourage others to participate </li></ul></ul>
  10. 10. Example: P roposed Vancouver Homelessness LP <ul><li>from Vancouver Homelessness Funding Model Report </li></ul>
  11. 11. CAUSEWAY a national collaboration A national collaboration working on new pathways for financial investment in public benefit .
  12. 12. 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: jennyzhu33@yahoo.com

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