An overview of the content and application of the Report of the Canadian Task Force on Social Finance, prepared for the Ministry of Municipal Affairs and Housing in Ontario.
Habitat for Humanity Guyana aims to have a greater impact on the housing sector beyond just building houses. There is a significant housing crisis in Guyana, with over 19,000 housing units needed and many existing homes being over 30 years old and in disrepair. To better address this issue, Habitat for Humanity Guyana is launching a new 4-year strategy in 2014 and reflecting on how to shift from a charitable to development organization. This includes pursuing more impactful partnerships with donors, corporations, and the government to maximize limited resources and make a greater contribution through combining expertise rather than just monetary donations.
Social Impact Partners proposes creating a venture philanthropy foundation called Social Investment Partners (SIP) that would:
- Hold industry-specific funds focused on domestic non-profit organizations in health, community development, and cleantech.
- Conduct due diligence to select high-impact non-profits for its portfolios and provide long-term support through management fees, board positions, and consulting.
- Market these portfolios to mid-sized foundations and high-net-worth individuals to attract funding and investments.
- Operate similarly to venture capital funds by developing long-term partnerships with portfolio organizations to build capacity and strengthen programs.
Social Investment Scotland is the largest Community Development Finance Institution in Scotland, providing over £43 million in investments to nearly 200 organizations over 10+ years. They define social investment as an investment that provides both a financial return as well as a social return through measurable social impacts. Social Investment Scotland offers a range of investment products including loans for various purposes to organizations addressing market failures. There is an ongoing debate around who and what types of organizations should be eligible for social investment, how to best measure social impact, and how to expand social investment in Scotland.
Atlanta business league strategy blueprint presentationJoseph Hudson
The document discusses Operation Turnover, an economic development strategy and blueprint for black business in Atlanta. The strategy aims to (1) increase the share of dollars currently spent by black consumers, businesses, and organizations that go to black businesses, (2) recognize the economic contributions of black businesses, and (3) redirect current and future resources to support black business growth. Operation Turnover builds on assets already in the black community to generate faster economic benefits.
Presented by David Floyd, Managing Director, Social Spider, at NCVO's 2015 Evolve Conference.
One of two presentations covering the alternative finance landscape.
Exploring Social Finance & Social EnterpriseAdam Spence
The document provides background on social enterprise and social finance. It explores the motivation for these activities, including addressing complex social problems with constrained government finances. Various models are examined, such as housing funds, community loan funds, and social impact bonds. Case studies of the New York City Acquisition Fund and social enterprises like Friends Catering Company and St. John's Bakery are also summarized.
This document provides an overview of funding options for social enterprises, including social investment such as loans and equity, grants, and angel investors. It discusses that social enterprises should aim to be financially sustainable through earned income but can also pursue a mix of funding sources including social investment, grants, and trading income. It provides examples of social investment providers, grant funders, and local funding programs to support social enterprises.
Habitat for Humanity Guyana aims to have a greater impact on the housing sector beyond just building houses. There is a significant housing crisis in Guyana, with over 19,000 housing units needed and many existing homes being over 30 years old and in disrepair. To better address this issue, Habitat for Humanity Guyana is launching a new 4-year strategy in 2014 and reflecting on how to shift from a charitable to development organization. This includes pursuing more impactful partnerships with donors, corporations, and the government to maximize limited resources and make a greater contribution through combining expertise rather than just monetary donations.
Social Impact Partners proposes creating a venture philanthropy foundation called Social Investment Partners (SIP) that would:
- Hold industry-specific funds focused on domestic non-profit organizations in health, community development, and cleantech.
- Conduct due diligence to select high-impact non-profits for its portfolios and provide long-term support through management fees, board positions, and consulting.
- Market these portfolios to mid-sized foundations and high-net-worth individuals to attract funding and investments.
- Operate similarly to venture capital funds by developing long-term partnerships with portfolio organizations to build capacity and strengthen programs.
Social Investment Scotland is the largest Community Development Finance Institution in Scotland, providing over £43 million in investments to nearly 200 organizations over 10+ years. They define social investment as an investment that provides both a financial return as well as a social return through measurable social impacts. Social Investment Scotland offers a range of investment products including loans for various purposes to organizations addressing market failures. There is an ongoing debate around who and what types of organizations should be eligible for social investment, how to best measure social impact, and how to expand social investment in Scotland.
Atlanta business league strategy blueprint presentationJoseph Hudson
The document discusses Operation Turnover, an economic development strategy and blueprint for black business in Atlanta. The strategy aims to (1) increase the share of dollars currently spent by black consumers, businesses, and organizations that go to black businesses, (2) recognize the economic contributions of black businesses, and (3) redirect current and future resources to support black business growth. Operation Turnover builds on assets already in the black community to generate faster economic benefits.
Presented by David Floyd, Managing Director, Social Spider, at NCVO's 2015 Evolve Conference.
One of two presentations covering the alternative finance landscape.
Exploring Social Finance & Social EnterpriseAdam Spence
The document provides background on social enterprise and social finance. It explores the motivation for these activities, including addressing complex social problems with constrained government finances. Various models are examined, such as housing funds, community loan funds, and social impact bonds. Case studies of the New York City Acquisition Fund and social enterprises like Friends Catering Company and St. John's Bakery are also summarized.
This document provides an overview of funding options for social enterprises, including social investment such as loans and equity, grants, and angel investors. It discusses that social enterprises should aim to be financially sustainable through earned income but can also pursue a mix of funding sources including social investment, grants, and trading income. It provides examples of social investment providers, grant funders, and local funding programs to support social enterprises.
The document discusses the rise of social finance in the UK as a new mechanism to fund social sector organizations. It provides an overview of the growing supply of social finance products including grants, loans, equity/quasi-equity, and social impact bonds. It also examines demand-side issues, noting many grassroots organizations lack experience with and readiness for finance. While social finance has expanded, it may not replace reduced public grants, and support for developing organizational capacity remains important.
This document discusses social finance for affordable housing. It defines social finance as investments that generate financial returns while also creating positive social or environmental impacts. Social finance is an important way to mobilize private capital for affordable housing projects. Examples of social finance for housing in Ontario include bonds issued by the Toronto Community Housing Corporation and YWCA Canada that raised funds for affordable housing developments. While there are challenges to social finance in housing like stable revenue streams and organizational capacity, opportunities exist through models from other jurisdictions, capacity building resources, and strategic solutions that leverage private capital at scale.
Investing for Impact - Supply-Side PerspectivesKarim Harji
Presentation at a session titled "Investing for Impact: New Ways Capital is Flowing to Social Good". Describes the Canadian social capital market, the role of intermediaries, and the opportunities in place for social investors.
Brewing up new ideas to put into practice, 2001 was a year of proactive stimulation for CFED. Furthering research initiatives like the American Dream Demonstration, CFED continued to vigorously explore the efficacy and economic impact of new polices and procedures in order to identify promising ideas.
Foresters Community Finance aims to promote financial inclusion through providing pathways to capital for social enterprises, non-profits and individuals. Their mission is to use finance as a means to positively impact communities rather than as an end itself. They offer tailored loans and support to help social enterprises build their asset base and grow in a sustainable manner over the long term.
The document summarizes information from a presentation on social finance and affordable housing. It discusses barriers to affordable housing development, sources of public funding, and financial innovations used in other countries to increase funding for affordable housing projects, such as social impact bonds. Potential strategies proposed include establishing a limited partnership to attract private investment in supportive housing.
Presented at the ANSER Conference, 28th May, 2009
Based on a forthcoming paper on the social finance landscape in Canada, from an investor perspective. Download the paper from carleton.ca/3ci
Funding For Your Business: SBIC & government grantsgeorgebailey213
A guide to receiving funding for your business through Small Business Investment Company (SBIC), a subsidiary of US Small Business Administration, and through Government Grants.
The document discusses non-profit organizations (NPOs), the third sector, and social enterprises. It defines NPOs as organizations that do not generate profits and exist to promote public welfare rather than revenue. NPOs are often tax-exempt and can receive tax-deductible donations. The third sector refers to non-governmental, non-profit organizations that undertake social activities. Social enterprises have both social and financial goals, relying primarily on earned income to be sustainable, unlike NPOs which rely mainly on donations. The key difference between social enterprises and NPOs is that social enterprises can generate profits to reinvest in their social mission.
The document discusses the emergence of a "blended value" approach to investing that balances social and financial returns. It provides examples of social enterprises that are proven but need expansion capital, including First Book, Real Benefits, and Goodcap. The document also outlines the spectrum of investing from strategic philanthropy to market-rate funds and discusses how blended value investing can fill the growth gap for social enterprises.
This document discusses the potential for social impact bonds (SIBs), a type of fixed income product used to fund social programs, to be structured in a Shariah-compliant manner and provide opportunities for Islamic investment. SIBs allow private investors to purchase government-issued bonds to fund social schemes, with returns paid if the schemes achieve targeted outcomes like reduced reoffending. The UK pioneered SIBs in 2010 and they are growing in popularity in the US and being explored in other countries. Islamic finance experts see potential to structure SIBs using an Islamic contract like Jualah, tying investor returns to project success. This could link socially responsible and Islamic investing while achieving financial returns. Countries like Malaysia are working to
Presented during Tshikululu Social Investments' second annual Serious Social Investing workshop, which took place on 17 and 18 March 2011.
Social enterprise is touted in especially developed
economies as a clever long-term approach to social
change. Bridget Fury (Owner: Bridget Fury Consulting) scopes the extent of SE in South Africa, who is doing it and to what effect, and poses hard choices for social investors to consider in this field.
2014 IVCA Viewpoint - Partnering for Growthillinoisvc
The document discusses private equity partnerships for growth. It provides three case studies of private equity investments in Illinois companies:
1) Victory Park Capital's turnaround of Giordano's, a bankrupt pizza chain, by hiring a new CEO who implemented operational and leadership changes.
2) Prairie Capital's carve out of Navman Wireless from a larger company, allowing it to operate independently.
3) Prism Opportunity Fund and Madison Dearborn Partner's early and later investments in Fieldglass, helping it grow from a startup to a larger company.
The case studies show how capable management teams partnering with skilled investors can generate value for stakeholders through revenue, employment and performance growth. Effective partnerships require early engagement and
Ash shrivastav the venture capitalist with a silicon valley solution for mi...LenaCharles3
Silicon Valley based Venture Capitalist Ash Shrivastav proposes a new kind of seed stage VC fund backed by the United States government to invest in companies that most need it
Let the Urban Affairs Coalition walk you through the basics of Fiscal Sponsorship. From what it is, how it works, who provides it and how to pick a fiscal sponsor.
2016 IVCA Viewpoint - The Art+Science of Investing in Private Companiesillinoisvc
The document summarizes a discussion about private equity and venture capital investments between representatives from two Illinois public pension funds and an investment consulting firm. They discuss that private equity has significantly outperformed other asset classes for the pension funds over long time periods. The representatives provide details on the percentage of assets their organizations invest in private equity/venture capital and their general investment philosophies. They also discuss what they look for in private equity and venture capital firms and fund managers when making investment decisions.
Catalyzing Financial Services for Enterprising Nonprofits . A report of the CIBC Presents Entrepreneurship 101 Lived-it-Lecture featuring Jed Emerson held December 2, 2009, at MaRS.
Social Finance in Quebec: A New Financial ArchitectureSocial Finance
Presentation by Margie Mendell of Concordia University at the ANSER Annual Conference in Montreal on June 2, 2010.
The presentation describes the range of tools, instruments and strategies that have been used to develop social finance in Quebec.
The document discusses the rise of social finance in the UK as a new mechanism to fund social sector organizations. It provides an overview of the growing supply of social finance products including grants, loans, equity/quasi-equity, and social impact bonds. It also examines demand-side issues, noting many grassroots organizations lack experience with and readiness for finance. While social finance has expanded, it may not replace reduced public grants, and support for developing organizational capacity remains important.
This document discusses social finance for affordable housing. It defines social finance as investments that generate financial returns while also creating positive social or environmental impacts. Social finance is an important way to mobilize private capital for affordable housing projects. Examples of social finance for housing in Ontario include bonds issued by the Toronto Community Housing Corporation and YWCA Canada that raised funds for affordable housing developments. While there are challenges to social finance in housing like stable revenue streams and organizational capacity, opportunities exist through models from other jurisdictions, capacity building resources, and strategic solutions that leverage private capital at scale.
Investing for Impact - Supply-Side PerspectivesKarim Harji
Presentation at a session titled "Investing for Impact: New Ways Capital is Flowing to Social Good". Describes the Canadian social capital market, the role of intermediaries, and the opportunities in place for social investors.
Brewing up new ideas to put into practice, 2001 was a year of proactive stimulation for CFED. Furthering research initiatives like the American Dream Demonstration, CFED continued to vigorously explore the efficacy and economic impact of new polices and procedures in order to identify promising ideas.
Foresters Community Finance aims to promote financial inclusion through providing pathways to capital for social enterprises, non-profits and individuals. Their mission is to use finance as a means to positively impact communities rather than as an end itself. They offer tailored loans and support to help social enterprises build their asset base and grow in a sustainable manner over the long term.
The document summarizes information from a presentation on social finance and affordable housing. It discusses barriers to affordable housing development, sources of public funding, and financial innovations used in other countries to increase funding for affordable housing projects, such as social impact bonds. Potential strategies proposed include establishing a limited partnership to attract private investment in supportive housing.
Presented at the ANSER Conference, 28th May, 2009
Based on a forthcoming paper on the social finance landscape in Canada, from an investor perspective. Download the paper from carleton.ca/3ci
Funding For Your Business: SBIC & government grantsgeorgebailey213
A guide to receiving funding for your business through Small Business Investment Company (SBIC), a subsidiary of US Small Business Administration, and through Government Grants.
The document discusses non-profit organizations (NPOs), the third sector, and social enterprises. It defines NPOs as organizations that do not generate profits and exist to promote public welfare rather than revenue. NPOs are often tax-exempt and can receive tax-deductible donations. The third sector refers to non-governmental, non-profit organizations that undertake social activities. Social enterprises have both social and financial goals, relying primarily on earned income to be sustainable, unlike NPOs which rely mainly on donations. The key difference between social enterprises and NPOs is that social enterprises can generate profits to reinvest in their social mission.
The document discusses the emergence of a "blended value" approach to investing that balances social and financial returns. It provides examples of social enterprises that are proven but need expansion capital, including First Book, Real Benefits, and Goodcap. The document also outlines the spectrum of investing from strategic philanthropy to market-rate funds and discusses how blended value investing can fill the growth gap for social enterprises.
This document discusses the potential for social impact bonds (SIBs), a type of fixed income product used to fund social programs, to be structured in a Shariah-compliant manner and provide opportunities for Islamic investment. SIBs allow private investors to purchase government-issued bonds to fund social schemes, with returns paid if the schemes achieve targeted outcomes like reduced reoffending. The UK pioneered SIBs in 2010 and they are growing in popularity in the US and being explored in other countries. Islamic finance experts see potential to structure SIBs using an Islamic contract like Jualah, tying investor returns to project success. This could link socially responsible and Islamic investing while achieving financial returns. Countries like Malaysia are working to
Presented during Tshikululu Social Investments' second annual Serious Social Investing workshop, which took place on 17 and 18 March 2011.
Social enterprise is touted in especially developed
economies as a clever long-term approach to social
change. Bridget Fury (Owner: Bridget Fury Consulting) scopes the extent of SE in South Africa, who is doing it and to what effect, and poses hard choices for social investors to consider in this field.
2014 IVCA Viewpoint - Partnering for Growthillinoisvc
The document discusses private equity partnerships for growth. It provides three case studies of private equity investments in Illinois companies:
1) Victory Park Capital's turnaround of Giordano's, a bankrupt pizza chain, by hiring a new CEO who implemented operational and leadership changes.
2) Prairie Capital's carve out of Navman Wireless from a larger company, allowing it to operate independently.
3) Prism Opportunity Fund and Madison Dearborn Partner's early and later investments in Fieldglass, helping it grow from a startup to a larger company.
The case studies show how capable management teams partnering with skilled investors can generate value for stakeholders through revenue, employment and performance growth. Effective partnerships require early engagement and
Ash shrivastav the venture capitalist with a silicon valley solution for mi...LenaCharles3
Silicon Valley based Venture Capitalist Ash Shrivastav proposes a new kind of seed stage VC fund backed by the United States government to invest in companies that most need it
Let the Urban Affairs Coalition walk you through the basics of Fiscal Sponsorship. From what it is, how it works, who provides it and how to pick a fiscal sponsor.
2016 IVCA Viewpoint - The Art+Science of Investing in Private Companiesillinoisvc
The document summarizes a discussion about private equity and venture capital investments between representatives from two Illinois public pension funds and an investment consulting firm. They discuss that private equity has significantly outperformed other asset classes for the pension funds over long time periods. The representatives provide details on the percentage of assets their organizations invest in private equity/venture capital and their general investment philosophies. They also discuss what they look for in private equity and venture capital firms and fund managers when making investment decisions.
Catalyzing Financial Services for Enterprising Nonprofits . A report of the CIBC Presents Entrepreneurship 101 Lived-it-Lecture featuring Jed Emerson held December 2, 2009, at MaRS.
Social Finance in Quebec: A New Financial ArchitectureSocial Finance
Presentation by Margie Mendell of Concordia University at the ANSER Annual Conference in Montreal on June 2, 2010.
The presentation describes the range of tools, instruments and strategies that have been used to develop social finance in Quebec.
The document summarizes participatory research being done in Quebec on the social economy. It discusses the long tradition of participatory research at Université du Québec à Montréal (UQAM) and identifies several research centers. It also describes the Alliance de recherche universités-communautés en économie sociale (ARUC-ES), which coordinates five participatory research committees, and the Réseau québécois de recherche partenariale en économie sociale (RQRP-ES), a network of eight regional research groups. Key results of participatory research from 2000-2004 are highlighted, including mobilizing researchers and organizations, publishing documents,
CAIC is a Canadian Alternative Investment Cooperative that was founded over 20 years ago by religious communities to provide financing to charities, non-profits, and social justice groups. It has over $7 million in assets and a $4 million investment portfolio. CAIC provides an alternative source of funding to conventional lenders by offering mortgages, construction loans, equity investments, and loans. It looks at measures of social benefit, financial soundness, and community impact when evaluating investment opportunities. Currently it has invested $150k in 5 community loan funds, 3 of which are located in Quebec.
The document discusses the government's role in venture capital in Quebec and measures taken to increase private sector involvement and attract more foreign investment. It overviews various government-owned venture capital funds and corporations that have been restructured to integrate private capital. New mixed public-private funds have been created and support provided to establish regional and sectoral private venture capital funds. Retail funds' investment policies were also modified to encourage investing in local and foreign private funds.
Social finance is sustainable investing that aims to generate both social/environmental benefits and financial returns. The document discusses how social finance is gaining momentum in Canada but still lags behind other countries. It outlines various social finance mechanisms like social venture capital funds and investments in areas like affordable housing and community energy. The document proposes a national collaboration called CAUSEWAY to improve awareness of social finance opportunities in Canada and catalyze new financial pathways and products to build the field.
The document summarizes the work of the Canadian Task Force on Social Finance. It provides an overview of the Task Force members and outlines their 7 key recommendations to mobilize private capital for public good in Canada, including that foundations invest at least 10% of their capital in mission-related investments by 2020, establishing impact investment funds, developing new bond instruments for impact investing, exploring how pension funds can support impact investing, modernizing regulations for charities and non-profits, providing tax incentives for impact investing, and creating intermediaries to link investors and social enterprises.
The US National Advisory Board Issues Policy Recommendations To Encourage Imp...ImpactInvestUS
The US National Advisory Board on Impact Investing released a report with policy recommendations to encourage impact investing. The report calls for removing regulatory barriers, increasing effectiveness of government programs, and providing incentives for new private impact investments. Several members of the National Advisory Board pledged millions for impact investment projects that generate social and financial returns, including $100 million from Omidyar Network, $50 million from the Case Foundation, $25 million from the MacArthur Foundation, and $9 million from the Ford Foundation. The National Advisory Board was formed to advise on policies to drive social impact investing in the US.
The document summarizes Canada's inaugural Call for Concepts for Social Finance. It provides background on social finance and why the Canadian government issued the Call. It then summarizes the key details from 154 responses received, including examples of proposed social finance tools and structures to address issues like skills training, health care, education, affordable housing, entrepreneurship support and youth employment. The government plans to work with social finance leaders to develop promising concepts into pilot projects and further leverage partnerships and innovation to address social challenges.
This document outlines the concept of social finance and the potential for a national collaboration in Canada called CAUSEWAY. Social finance aims to generate both financial returns and social/environmental benefits. It exists on a continuum between traditional investments and grants. CAUSEWAY would work to develop new financial pathways in Canada for investing in public benefit through activities like convening stakeholders, supporting product and policy development, and building knowledge in the field.
Atlantic Canadian companies struggle to access capital at all stages of growth. While some firms have seen success by attracting early investors, the region as a whole receives a disproportionately small amount of venture capital funding compared to its population. There is also a lack of public listings and collaboration between provincial efforts. New approaches are needed, including a harmonized regional tax credit, collaboration between banks and lending agencies, and the creation of an advocacy organization to improve the business environment across Atlantic Canada and help startups access funding.
Leveraging Opportunity Zones to Support Regional Economic Developmentnado-web
During the 2019 NADO Annual Training Conference (October 19 - 22 in Reno, NV), Scott Dadson shared information creating investable communities and how to take advantage of the Opportunity Zone Program.
1) Social investment is an important tool that government departments can use to finance new approaches to tackling social problems and achieve policy objectives. It can help support innovation and reduce long-term public funding requirements.
2) The document provides examples of how social investment has been used to support homelessness services, dementia care, and community organizations. It also outlines some common social investment models like social impact bonds.
3) Government has established funds and organizations to promote social investment, including Big Society Capital, the Investment and Contract Readiness Fund, and the Social Incubator Fund. These aim to increase capital available for social investment and build the capacity of social sector organizations.
From recruiting more passionate staff members to acquiring a bigger board of directors and most importantly, generating greater impact of CFED's work, 2000 was a fundamental year of growth for CFED. Mobilizing a strategic three-year plan at the beginning of the year, CFED has channeled it's resources into acquiring individual assets, enterprise development, and sustainable economies that have resulted in a remarkable vision for economic opportunity in years to come.
The 2013 annual report of the Private Equity Growth Capital Council summarizes the organization's activities over the past year. In 2013:
- Private equity firms invested over $400 billion in roughly 2,000 US companies, and delivered over $120 billion to investors. There are roughly 2,800 private equity firms and 17,700 private equity-backed companies headquartered in the US, employing over 7.5 million people worldwide.
- The PEGCC advocated on key issues like carried interest taxation and interest deductibility. It also educated policymakers and the public on the value of private equity through its research, media outreach, and connecting CEOs of portfolio companies with members of Congress.
- Not
In the past, Canadians relied on governments and non-profits to meet social needs, while leaving markets, private capital and business to deliver financial returns. This binary system is breaking down. Profound societal challenges require us to find new ways to mobilize ingenuity and resources for effective, long-term solutions. A social finance marketplace investing in social, environmental and economic returns.
HCT Group is a social enterprise founded in 1982 that provides transport services and training. It reinvests profits into community programs to further its mission of social change through enterprise and partnership. The organization has experienced rapid growth, with turnover increasing from £202k in 1993 to £28.1k in 2010 through a focus on trading over grants. This growth approach allows it to significantly expand its social impact by supporting more community transport and training programs.
The US National Advisory Board (NAB) on Impact Investing released its report of policy recommendations to mainstream impact investing within the United States at a White House event this morning. The initiative, focused on promoting public and private innovation and entrepreneurship in solving the United States’ greatest social challenges, addresses the most catalytic changes needed from a policy standpoint. The report, Private Capital, Public Good: How Smart Federal Policy Can Galvanize Impact Investing — and Why It’s Urgent, has been made public online at www.NABimpactinvesting.org.
About the NAB
The US National Advisory Board (NAB) to the Global Social Impact Investment Taskforce aims to catalyze the development of the global social impact investment market. It was established following the June 2013 G8 Social Impact Investment Forum in London. The NAB was formed to focus on the US domestic policy agenda. The NAB is comprised of 27 thought leaders, including private investors, entrepreneurs, foundations, academics, impact-oriented organizations, nonprofits, and intermediaries.
Presentation on social finance and social housing including background on MaRS, the Centre for Impact Investing, motivations, case studies, public policy implications, and areas of interest for housing providers. As presented at CHRA Pre-Congress in May 2012.
Before we get too far into the new fiscal year, we thought we’d go back and look at how the IBED world fared in the last round of state budgets. Tax credits continue to be a favored tool to spur growth and investment in the IBED world. Even though budgets are tight, many states have maintained or increased funding for IBED-related tax credits, and a few, such as Nebraska and Virginia have introduced new ones. Supporting commercialization efforts was also high on the list this legislative season. Ohio’s Third Frontier, for instance, has a new Commercial Acceleration Loan Fund worth $25 million. With waning investment from traditional venture capital firms, several states are stepping in to fill the gap. Maryland’s new InvestMaryland program allocates $70 million for venture capital in the innovation economy sector. And though it was developed back in 1989, Economic Gardening has only recently started to catch hold on the regional and state level. Nebraska, Virginia, Pennsylvania, and Michigan have all introduced new initiatives this year. The trend of the year, though, seems to be the restructuring of state-level economic development efforts, with a particular emphasis on engaging the private sector. Many of these efforts are currently facing some controversy, but we wouldn’t be surprised if once the wrinkles get ironed out, this is a trend that’s here to stay.
I'm excited about the prospects of using private financial capital to fund impactful initiatives in areas that would in most cases be to risky. This can be done by seeing the high-risk areas a place for R & D, CSR, or a way to mitigate reputational risk. The problem is its complex.
There are a couple examples here about trying to make this vision a bit simpler to understand without lying through simplistic propositions.
As a follow up to our 2/26/14 webinar, Social Impact Bonds 101, Robert Esposito and Shawn Pelsinger, two NYU Law and Social Enterprise Fellows, joined us to expand upon our original discussion with a deeper look into the growth of SIB's in the Unites States and the implications for the philanthropic sector. Our two experts took us through a number of recent developments around SIB's in the U.S., including the fate of guarantors, the growth of multiple-funding sources, the expanding position of investment banks for financing and the ultimate role of foundations and philanthropy. This was the second webinar in a four-part series with Public Allies.
The document discusses social finance and outlines examples of collaborative approaches to channeling capital towards public benefit uses. It provides an overview of social finance, how capital flows from sources to organizations for programs and assets, and fields of innovation in social finance. It then summarizes provocative examples of social finance funds and mechanisms in Canada that align interests to create innovative solutions for affordable housing, community development, healthcare access, and addressing homelessness.
Similar to Mobilizing Capital for Public Good: Presentation to MMAH (20)
This document summarizes the challenges facing the Cape Cod fishing community under the catch shares system for Atlantic sea scallops. It describes how the Cape Cod Fisheries Trust (CCFT) was established to purchase scallop quota and lease it affordably to local fishermen. The CCFT aims to strengthen Cape Cod fishing businesses, protect resources, and maintain fishing as a way of life, serving as a model for other communities. It provides an overview of the CCFT's operations and positive impacts, including benefits to 13 vessels and 62 fishermen.
Starting Point: Social finance for sustainable food, fishing and farmingSocial Finance
Social finance is an approach to managing money that delivers both social/environmental benefits and financial returns. It aims to leverage existing capital to attract new investment for public benefit. Some key features of social finance include providing environmental sustainability, poverty reduction, jobs for marginalized populations, and carbon reduction. We need social finance because traditional financial systems do not adequately address challenges faced by sectors like sustainable food and farming. Social finance can help by providing capital for facilities, operations, technical assistance, and enabling public policy.
Off the Hook is a community supported fishery with objectives of being financially successful through providing meaningful work, contributing to ecological restoration through sustainable fishing practices, and inspiring smarter policy through their sustainable business model. They use fixed gear rather than mobile gear and have locations in Nova Scotia, where customers are willing to pay more for sustainable seafood. Their practices aim to support generations of fishing to come while protecting the environment and marine life.
This document discusses challenges facing the lobster fishery in Atlantic Canada. The high cost of fishing licenses is prohibitive for new entrants and is driving consolidation by corporate interests. Potential solutions discussed include license banks that allow cooperative ownership of licenses, loan funds to assist new fishermen, policy changes to allow graduated license ownership, and developing regional distribution networks to improve prices. Next steps proposed are further developing financial models, partnering to design a small license bank, and improving regional distribution.
Canada's Atlantic fisheries represent a $1.8 billion industry dominated by three species - lobster, shrimp, and crab - which account for 76% of the total landed value. The industry is highly decentralized, with individual owner-operators representing 75% of the landed value. While corporate ownership has increased over time, owner-operators still control the vast majority of lobster, crab, and 60% of shrimp landings. The owner-operator model faces threats from high investment costs for new entrants, weak markets, and the potential for increased corporate consolidation and vertical integration. Alternatives being explored to support the owner-operator model include fleet buybacks, initiatives to facilitate intergenerational transfer of licences, and marketing/
Blended Financing for Impact: The Opportunity for Social Finance in Supportiv...Social Finance
This presentation provided an overview of social finance and its potential application to supportive housing in Canada. It defined social finance as investments that generate both social impact and financial returns. The presentation noted there is significant demand for new supportive housing that exceeds current government funding. It highlighted examples of social finance used for affordable housing projects and discussed challenges and opportunities for supportive housing providers to utilize social finance. Priority actions were suggested for various stakeholders to help acquire or develop more supportive housing units, such as establishing a national housing development corporation or capital fundraising campaign. The presentation concluded by providing information on additional resources available to learn more.
Vibrant Communities Canada: Measuring Impact Social Finance
This document summarizes the Vibrant Communities Canada initiative, which aimed to reduce poverty through local multi-sector collaboration. It discusses:
1) The initiative was launched in 2002 by three national partners to test an experimental approach to poverty reduction through local action guided by five principles.
2) Thirteen communities participated as "Vibrant Communities" to build collaborations across sectors including government, business, non-profits and citizens with lived experience.
3) Evaluating the comprehensive initiative's impact proved challenging due to its emergent nature, attribution issues, and differences across sites. Developmental evaluation accommodated these challenges by focusing on communities' evolving theories of change.
World Wildlife Fund Banking on Cod: Finance Lab at the Social Finance Forum 2012Social Finance
The document discusses WWF's strategy to generate new sources of financing for sustainable fisheries by raising the "sunken billions" lost annually from depleted fisheries stocks. It proposes creating a financial institution that provides loans to fishery enterprises implementing management measures, to be repaid from increased catches and ecosystem services as stocks recover over time. A pilot program is proposed for Newfoundland's Grand Banks fishery, where recovered fish stocks could generate $1 billion annually. However, scaling the initiative poses challenges around balancing impact versus financial viability. The key question is how to structure an early success that can both prove the model and expand its application.
Global Catalyst Initiative: Finance Lab at the Social Finance Forum 2012Social Finance
The Global Catalyst Initiative (GCI) helps emerging social ventures prove their models and attract growth funding through three main activities: 1) providing proving capital to ventures to reach key milestones, 2) offering technical assistance, and 3) connecting ventures to networks. To date, GCI has reviewed over 150 ventures, invested in six, and seen positive early signs. However, GCI faces challenges in functioning as a private sector intermediary in a market that cannot pay for it and determining whether to focus on in-house capital or building expertise.
SNAP: Finance Lab at the Social Finance Forum 2012Social Finance
Overview presentation on SNAP (Stop Now and Plan) impact investing initiative by Leena Augemieri, Director, Scientific and Program Development, Child Development Institute, Stop Now and Plan (SNAP).
FarmStart: Finance Lab at the Social Finance Forum 2012Social Finance
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Mobilizing Capital for Public Good: Presentation to MMAH
1. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance A Presentation to Housing Policy Branch, Ontario January 19th, 2011 MaRS Discovery District Social Innovation Generation
2. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance What is Social Innovation? Most simply, social innovation is about finding new ways to address unmet social needs. SiG defines it more specifically as new products, processes or programs that profoundly change the basic routines, resources and authority flows or beliefs of a social system.
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4. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance Canada’s ability to conceive, build and scale social innovations will require more capital than available through philanthropy and government.
5. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance “While there is not enough money in foundation and government coffers to meet the defining tests of our time, there is enough money. It’s just locked up in private investments.” Judith Rodin, President of the Rockefeller Foundation May 2010
6. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance “Our hope is that this report will raise awareness of social finance and stimulate a national discussion about a new partnership model between profit and public good, and the opportunity it represents for Canada’s future.” Dr. Ilse Treurnicht Mobilizing Private Capital for Public Good, Nov. 2010
7. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance Task Force addressed 3 challenges Capital Mobilization Enabling tax & regulatory environment Investment pipeline
8. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance 1 To maximize their impact in fulfilling their mission, Canada’s public and private foundations should invest at least 10% of their capital in mission-related investments (MRI) by 2020 and report annually to the public on their activity.
9. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance . $3.4B $34B In capital assets 10% MRI
10. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance To mobilize new capital for impact investing in Canada, the federal government should partner with private, institutional and philanthropic investors to establish the Canada Impact Investment Fund. Provincial governments should also create Impact Investment Funds where these do not currently exist. 2
11. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance Winning formula? > = BC | $2M | fund with Vancity and Vancouver Foundation Chantier de l’économie sociale Québec |$23M | + $30M | today +$146M Gov + 1st loss capital Risk for private investors Investment $
12. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance To channel private capital into effective social and environmental interventions, investors, intermediaries, social enterprises and policy makers should work together to develop new bond and bond-like instruments. This could require regulatory change to allow the issuing of certain new instruments and government incentives to kick-start the flow of private capital. 3
13. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance Community Bonds issued by nonprofits Green Bonds Social Impact Bond .
14. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance 4 To explore the opportunity of mobilizing the assets of pension funds in support of impact investing, Canada's federal and provincial governments are encouraged to mandate pension funds to disclose responsible investing practices, clarify fiduciary duty in this respect and provide incentives to mitigate perceived investment risk.
15. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance 5 To ensure charities and non-profits are positioned to undertake revenue generating activities in support of their missions, regulators and policy makers need to modernize their frameworks. Policy makers should also explore the need for new hybrid corporate forms for social enterprises.
16. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance To encourage private investors to provide lower-cost and patient capital that social enterprises need to maximize their social and environmental impact, a Tax Working Group should be established. This federal-provincial, private-public Working Group should develop and adapt proven tax-incentive models, including the three identified by this Task Force. This initiative should be accomplished for inclusion in 2012 federal and provincial budgets. 6
17. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance 1. Tax credit for social enterprise investors 2. Tax supported social enterprise debt instrument 3. Refundable tax credit for social hires .
18. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance 4,800 local investors NS Equity Tax Credit SME, Cooperatives, CEDIF $32M in 90 offerings < =
19. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance 7 To strengthen the business capabilities of charities, non-profits and other forms of social enterprises, the eligibility criteria of government sponsored business development programs targeting small and medium enterprises should be expanded to explicitly include the range of social enterprises.
20. The Task Force on Social Finance secretariat and research were kindly supported by the following organizations:
21. Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance Endorsement Invitation Inspired by what you've learned? We invite you to endorse the report by visiting the Task Force website and completing the endorsement form. Show your support for Canada's social finance future at: http://socialfinancetaskforce.ca
Editor's Notes
IntroducemyselfThankSumeraPurpose of the presentation1 - Social innovations role in fundamentally changing the way we think about and solve societal challenges. 2 - Introduce to you the Task Force recommendations
The CanadianTask Force on Social Finance was conceived by Social Innovation Generation (SiG) to identify opportunities to mobilize private capital for public good,within either non-profit or for-profit enterprises.
Opportunity:Foundations currently manage $34B in capital assets. Most have invested little of their total capital pool to advance their missions. Channeling just 10% of their total capital into mission-related investing could mobilize $3.4B to advance the collective missions of foundations.
In Quebec, the Réseaud’investissement social du Québec was created in 1997 with matching contributions from the Quebec government and the private sector. It has since invested $11.6M in 292 social enterprises, leveraging over $147M in total investment.The Government of Ontario has announced its intention to establish a $20M Social Venture Capital Fund to support the growth of promising emerging social ventures. This fund would focus on leveraging matching private capital to support highly scalable social enterprises in the areas of education, health, affordable housing, the environment, and human capital development.
(Fiducie du Chantier de l’économie sociale, 2006) for non-profit and co-operative enterprises in Quebec. leverage an additional $30M in investment at market rates fromthree institutional investors. Including the labour- sponsored fund, Fonds de solidarité, and the pension funds Fondaction and Investissement Quebec. In the last three years, Chantier has leveraged $146M of additional investment in its portfolio (56 non-profits and co-oper- atives), which contributed to the creation of 1,495 jobs. Investor risk is further minimized by Chantier’s policy of maintaining a “fond de prévoyance,” investing 35% of its capital in long-term, blue chip stocks and bonds.The UK government’s £20M investment in Bridges Ventures (a UK-based social investment fund) in 2002 attracted over £120M of private impact investment over six years and likely contributed to the development of over £325M in other social venture capital funds. In the US, investment of $1.1B in the Community Development Financial Institutions (CDFI) Fund since 1994 has lever- aged $15B in private community investment through individual CDFIs.
Community Bonds generally refer to securities issued by non-profit organizations to raise debt-financing. These are binding commitments to pay the investor a set rate of interest over the life of the bond and to return their capital at the end of the term.Community Bonds may be secured or unsecured and are most often used in Canada to raise capital for real estate (buildings) acquisition, infrastructure, or in social enterprises with reliable future revenue streams.In the US, they are frequently used by non-profits: the best- known being the Calvert Community Investment Note, which has leveraged $200M in assets over a 15-year period.Canadian non-profits currently have difficulty issuing Community Bonds because there is no clear process governing their sale to the public. While provinces have legislation and processes to regulate bond issues by corporations and co-operatives, there are no such oversight mechanisms for non-profits. As a result, non-profits must go through onerous provincial Securities Commission processes designed for corporate bond issues and only sell to accredited investors. While they may apply for an exemption, this exemption is still incomplete. Under the SIB model, private investors are motivated to seek and invest in organizations delivering preventative solutions that alleviate costly remedial spending by government. This is done through multi-year contracts with governments that agree to pay investors a portion of the public savings realized if these interventions are successful. Because SIBs can potentially help trigger solutions to high-cost problems (e.g. youth re-offending, clinical treatment for diabetes, or high energy consumption), there is strong interest in piloting this approach in Canada.It is important to note, however, that SIBs will likely be a niche financing tool limited to certain highly specific target impacts. A key reason for this is the complexity involved in developing rigorous performance metrics
Canada’s federal and provincial governments should modernize legislative definitions of fiduciary duty to clearly permit the pursuit of ancillary public benefits in addition to risk-adjusted market rates of return. This would provide the clarity pension funds need to actively consider impact investing as a legitimate and integral component of their portfolios.PSAC Staff Pension Fund investment in Affordable HousingIn 2007 the Public Service Alliance of Canada (PSAC), Canada’s largest federal public service workers’ union, made a $2M investment in affordable housing in Ottawa. The first arrangement of its kind, the investment was made through an innovative partnership with Alterna Savings Credit Union, a credit union committed to community investing, and the Ottawa Community Loan Fund (OCLF), a non-profit community development financial institution. Although the pension fund had long committed to the goal of investing a small portion of its assets in affordable housing in Ottawa,it took various organizations to facili- tate this investment. In order to fulfill its fiduciary duty, the pension fund required an investment grade fixed-income invest- ment. Alterna provided a five-year GIC to the pension fund. In turn, the Ottawa Community Loan Fund assisted Alterna in sourcing an appropriate affordable housing investment in Ottawa.
Bill – 65 Ontario Nonprofit ActCRA – noprofits for nonprofits – We suggest a Destination of Profits TestRecent announcement from BC regarding change of the Corporations Act – Asset Cap
Tax credit for social enterprise investors; under consideration by the BC government to include social enterprise (non-profit and co-operatives) as an eligible “prescribed business activity” in its Venture Capital Corporation legislation. This measure currently offers individual and corporate investors a 30% tax credit incentive of up to $60,000 annually for investments in certain business sectors (technology, film, etc.). The Ontario Social Economy Roundtable has proposed a similar 30% tax credit incentive for investments in enterprising non-profits and co-operatives that would also be RRSP eligible. 2. Tax supported social enterprise debt instrument; and establish a social enterprise debt instrument that would bear interest at a below- market rate, but offer debt holders tax-free interest income. This mechanism would be analogous to the tax-free municipal bonds that are widely used in the United States. In Canada, the use of such instruments would require harmonization of federal and provincial policies.3. Refundable tax credit for people outside of the employment economyborrowing from the UK’s Access to Work program, a way to bridge this cost gap would be to provide eligible enterprises with a refundable tax credit of 25% of the wages/salaries paid to social hires engaged in defined activities. The credit would be payable to the enterprise on a refundable basis to ensure benefit to non- profits that do not pay tax.
The Nova Scotia Equity Tax Credit(ETC) is designed for local small businesses, co-operatives, and Community Economic Development Investment Funds (CEDIFs), to address the fact that most RRSP investments were being made in out-of-province businesses. Ten years into the program, 48 CEDIFs are operating in Nova Scotia, with over 4,800 community investors providing $32M in 90 offerings. Nearly all investors are residents of the communities in which the businesses are operating and expanding local employment opportunities.