Social Finance Forum Orientation

Social Finance Orientation Comments by: Tim Draimin Chair, Causeway; CEO, Tides Canada Foundation For: Causeway Social Finance Forum, October 15th, 2007; MaRS Discovery District - Toronto

Social finance is…
finance with a social or environmental mission
Or,
Social finance is a sustainable approach to managing money that delivers social, environmental dividends and economic return through social enterprises operating in the non-profit or public benefit universe.

financial flow to public benefit
The flow of financial capital to human need uses:
Affordable Housing
Social Enterprise
Support for working families
Health & Home Care
Community Development
Social Economy
Clean Technology
Microfinance
Fair Trade
Green Building
Education
Bottom of the Pyramid
(source: market sector listing adapted from www.xigi.net )
Sources Intermediaries Mechanisms Recipients Uses

Social finance’s most visible example is MICROFINANCE…

Canada’s nonprofit sector is low profile but economically significant and growing…
$120 Billion annual expenditures
Economically bigger than either the retail trade or mining, oil & gas industry (2003)
Nearly 8% of Canada’s GDP
1.5 M workers + 0.5 M volunteers; 9.2 % of economically active population
NP Sector is 2nd largest in world per capita
Above average growth

Large Proportion of Nonprofit Funding is Earned Income

Social enterprise is…
A business with primarily social (and or environmental) objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners...

Social enterprise across Canada The challenge: Build robust capital market Aboriginal Financial Institutions Chantier de l’economie sociale FCES Social Capital Partners Ecotrust Canada Vancity ECF: Social Enterprise Fund Great Bear Rainforest Community Ownership Solutions Innercity Renovations CED Investment Funds

The good news is that…
Many Canadian financial institutions are already involved with social finance type initiatives
Canada can accelerate the adoption of social finance by learning from and borrowing proven models from US and UK
We know what we require to make the transition to a robust social finance marketplace:
New conversation among finance, government and nonprofits about the potential to scale up innovative social enterprise and social finance
New capital market instruments involving the range of financial institutions: banks, credit unions, pension funds, mutual funds, etc.
Public policy that a) creates incentives for capital to expand into social finance, b) borrows international best practices in charity regulations that enable nonprofits to operate successfully in the growing hybrid space
Strengthening the capacity of nonprofits and their social enterprises

Blurring lines between sectors creates opportunities for partnerships … Charity & Non-profit Government Business Government Charity & Non-Profit Present Past Future Business Govt Charity & Non-profit Hybrid Space

CAUSEWAY a national collaboration A national collaboration working on new pathways for financial investment in public benefit .

Social Finance Forum Orientation

by Michael Lewkowitz on Oct 17, 2007

Accessibility

Categories

Tags

Upload Details

Usage Rights

1 Embed 15

Statistics

Social Finance Forum Orientation — Presentation Transcript