The Sector

It’s time for a Social Innovation and Social Finance Strategy for Canada.

In 2017, the Government of Canada created the Social Innovation & Social Finance Strategy Co-Creation Steering Group. The group provided 12 recommendations to advance social innovation and mobilize social finance in Canada. In November 2018, the Fall Economic Statement from the federal government outlined a proposed $755M Social Finance Fund to invest into socially innovative projects.

Here are the 12 Recommendations:

1. Governance and Public Service Infrastructure. Anchor commitment and long-term policy action toward social innovation and social finance in Canada through federal framework legislation.

2. Governance and Public Service Infrastructure. Establish and fund a permanent multi-sectoral Social Innovation Council.

3. Governance and Public Service Infrastructure. Create a permanent Office for Social Innovation.

4. Capacity and Skills. Improve social purpose organizations’ access to federal innovation, business development and skills training programs.

5. Capacity and Skills. Establish a cross-sector Social Innovation Ecosystem Program to address gaps in early-stage support, capacity building and impact measurement.

6. Funding and Capital. Create a Social Finance Fund to accelerate the development of social finance ecosystems across Canada.

7. Funding and Capital. Ensure federal funding practices support and enable social innovation.

8. Market Access. Incorporate social procurement guidelines, tools and training into Government’s focus on a cohesive sustainable procurement plan.

9. Policy and Regulatory Environment. Address the legal and regulatory issues impeding charities and non-profits from engaging in social innovation, social finance, and social enterprise.

10. Policy and Regulatory Environment. Develop regulatory innovation capacity using ‘sandboxes’ to explore and experiment with new models.

11. Evidence and Knowledge Sharing. Establish a Social Innovation Evidence Development and Knowledge Sharing Initiative.

12. Awareness and Mobilization. Coordinate a national social innovation and social finance awareness campaign.

Source Article: Social Innovation and Social Finance Strategy for Canada: https://sisfs.ca/

#socialfinance #socialinnovation #canada #toronto #impactinvesting #sds #mba #wbs #sustainability #ESG #fundraising #charity #bradfordturner #thesectorinc #socialenterprise

The Sector

Getting Ontario Readyfor the Social Finance Fund – Candian CED Network

Authors: Denyse Guy and Carolyn Pletsch, Guy & Associates Advisory Group: Michael Toye, Canadian Community Economic Development Network (CCEDNet); Liz Sutherland, Ontario Nonprofit Network (ONN); Peter Frampton, Learning Enrichment Foundation (LEF); Elspeth McKay, Operation Come Home; Rosalind Lockyer, PARO Centre for Women’s Enterprise (PARO)

Executive Summary

In the fall of 2018, the federal government announced an $805 million investment ($755 M for a Social Finance Fund and an additional $50 M for an Investment and Readiness Stream). It was a move that galvanized the Canadian social economy ecosystem and captured the imagination of many community members.1 This initiative was established in the 2015 mandate letters to the Ministers of Family, Children and Social Development and Employment, Workforce Development and Labour.

Their responsibility was to develop a Social Innovation and Social Finance Strategy for Canada so that it would contribute to the development of an inclusive society. To facilitate this goal, a SI/SF Co-Creation Steering Group was appointed and asked to prepare recommendations for the SI/SF Strategy. In August 2018, its twelve recommendations were released in a report entitled Inclusive Innovation: New Ideas and New Partnerships for Strong Communities.

Currently, the focus is on the Investment and Readiness Stream which will support social purpose organizations to improve their readiness for investment, and by so doing, successfully participate in the social finance market and provide creative solutions for the most challenging issues facing vulnerable populations. There are concerns that the resources made available in this initiative need to be delivered in ways that reach and effectively support the grassroots social economy organizations working directly with vulnerable populations.

This has driven convening organizations to undergo processes like this. The outreach and engagement reflected in this report acknowledges different perspectives about barriers and solutions. The sector has no shortage of innovative ideas to develop and is eager to share plans for new projects and create new partnerships. There is no doubt that the federal contributions announced in the 2018 Fall Economic Statement are timely, and represent a major opportunity to strengthen the ecosystem and supports for the social economy, including social innovation and social finance.

This survey was one of the key activities of the Canadian Community Economic Development Network’s engagement process to raise awareness of the Social Finance Fund and hear a range of grassroots perspectives. This process was guided by Vision, Mission and Guiding Principles. Through this research, completed with the assistance of 150 social economy leaders (respondents), we gathered ground intelligence on what sector members were thinking about and planning for in terms of projects and partnerships. We learned how best to support grassroots community groups. Through this process, we also mobilized knowledge and raised awareness of the Social Finance Fund.

Survey development took place over a two week period. As wide a range of respondents as possible was sought in the limited time and resources available. The completed contact list for potential respondents was 60 organizations, eventually producing a total of more than 150 respondents. The timing of the survey was during the period of February 21 to March 28. Social innovation and social finance approaches were sampled.

We found that in addition to the four approaches itemized in the survey, the respondents were practicing other approaches. Respondents’ needs were identified by the six interconnected areas recommended by the Co-Creation Steering Group. These areas were ranked to assess priorities. All six interconnected areas ranked closely in ratings. This supports the theory that all six are legitimate needs. Respondents identified barriers and solutions as part of the six interconnected areas including capacity building, funding and capital, market access, policy and regulatory environment, evidence and knowledge sharing, plus awareness and mobilization. This report summarizes many of their views.

What we also discovered is that there is no shortage of innovative ideas or interest in developing new services/tools. Social innovation is alive and well in the social economy sector. However, this initiative must have a unified strategic plan and clarify roles in the ecosystem. Additionally, new projects were shared that would benefit from Investment Readiness supports, as well as accessible capital for investment. We also confirmed the current key assets in Ontario that support social purpose organizations. The social enterprise ecosystem is well positioned to accelerate, scale and grow a marketplace that puts people and the planet first.

Source and full report here: https://thesectorinc.ca/wp-content/uploads/attachments/getting_ontario_ready_for_the_social_finance_fund_v2.pdf

#socialentrepreneurship #impactinvesting #ESG #mba #wbs #love #peace #change #bradfordturner #thesectorinc #csr #sdgs #entrepreneurship #venturecapital #finance #socialfinance #uk #toronto

The Sector

GOVERNMENT’S SOCIAL FINANCE FUND INCLUDES SUPPORT FOR STARTUPS – ISABELLE KIRKWOOD

The federal government recently announced the first organizations that will be responsible for implementing a program created to help support and invest in social purpose businesses. The program will include financial and programming support for startups.

The Investment Readiness Program, as it is called, is a $50 million project meant to help social purpose businesses become investment ready, in order to access the $755 millionSocial Finance Fund, which falls under the government’sSocial Innovation and Social Finance Strategy. The overall strategy aims to encourage innovative approaches to address social and environmental challenges in Canada by supporting organizations ranging from non-profit charities to for-profit enterprises, like Canadian startups.

“In Canada, we are lucky to live in one of the most equal societies in the world, but our communities still face a number of social, environmental, and economic challenges,” said Jean-Yves Duclos, Minister of Families, Children and Social Development, who announced the recipients. “Social purpose businesses play a vital role in solving these issues.”

The government, through Employment and Social Development Canada, plans to invest the $755 million over the next 10 years, while the $50 million for the Investment Readiness Program will be disbursed over two years to help social purpose organizations improve their ability to participate in the market. The government claims that overall the Social Finance Fund, expected to launch in 2020, could generate up to $2 billion in economic activity.

A social purpose organization is classified on a spectrum somewhere between a non-profit charity and a purely commercial enterprise, and usually seeks a mix of pure financial and pure social returns. The Investment Readiness Program will provide social purpose organizations with the resources they need to purchase technical support, like legal or business services, that are needed to improve organizational preparedness ahead revenue generation and investment opportunities.

Three partner types to implement program

The program will be delivered through three types of partner organizations. The first, handling Ecosystem Mobilization Initiatives, will work to “address key systems gaps.” The partners responsible for this portion of the Investment Readiness Program include Startup Canada, the Carleton Centre for Community Innovation, the Canadian Community Economic Development Network, the Waterloo Institute for Social Innovation and Resilience, the McConnell Social Research and Development, the Centre for Social Innovation, New Market Funds, Imagine Canada, and the Sauder Social Innovation Academy.

Startup Canada told BetaKit said it will be using the funding to launch its ‘Knowledge Mobilization Project’. This initiative aims to recognize enterprises that are achieving the United Nations’ Sustainable Development Goals in Canadian communities. It will identify those that are highly likely to become Investment Readiness Program funding recipients and Social Finance Fund recipients. Startup Canada said it will be releasing more details on the project in the near future.

“The principal objective of the Investment Readiness Program is to improve the ability of social purpose organizations to participate in the social finance market, as well as to engage in procurement and outcomes-based funding opportunities,” a spokesperson from Startup Canada told BetaKit. “Social purpose organizations will develop their capacities along the investment readiness continuum, from early-stage innovation to investor-ready in preparation for the Social Finance Fund.”

Startup Canada said the mobilization will combine both an online digital program to engage the extensive Startup Canada network and regional activities with local startup communities from coast to coast. In addition, Startup Canada will engage social purpose organizations in a survey to gather data, insights, and analyze trends in the area of impact-oriented social enterprise.

The second type of partner, Readiness Support Partners, are responsible for making funding available to the social purpose businesses. There are four groups responsible for implementing the funding: the National Aboriginal Capital Corporations Association, which launched its Indigenous Growth Fund recently, Community Foundations of Canada, Chantier de l’économie sociale, and the Canadian Women’s Foundation.

The third type of partner, Expert Service Providers, will offer specialized knowledge to organizations to support their movement along the “readiness continuum.” These organizations include LIFT Philanthropy Partners, McConnell Innoweave, the Social Enterprise Ecosystem Project, and the Social Venture Exchange.

Source: ISABELLE KIRKWOOD, betakit.com: https://betakit.com/governments-social-finance-fund-includes-support-for-startups

#socialfinance #socialinnovation #impactinvesting #toronto #love #peace #csr #mba #sdgs #wbs #thesectorinc #bradfordturner #fundraising #charity #socialenterprise #change #sustainability #techforgood

The Sector

IS YOUR CHARITY READY FOR SOCIAL FINANCE? 5 THINGS YOU NEED TO KNOW – Adam Jog.

In the fall of 2018, the Government of Canada announced that it would be committing $755 million dollars towards the creation of a Social Finance Fund and $50 million dollars towards an associated Investment Readiness Program.

This is a significant step by the federal government towards catalyzing Canada’s emerging social finance market. And it’s a big opportunity for organizations that have a mission to advance social, cultural, or environmental aims.

But what does this all mean for your charity?

First, what is social finance? 

Social finance is a type of lending or investment that delivers a positive social, cultural, or environmental impact as well as a financial return for creditors / investors. Social finance could potentially provide a new source of income for charities who typically rely on more traditional sources of income, such as grants and donations.

Second, what is the Social Finance Fund? 

The Social Finance Fund is a pool of money that will increase the amount of affordable, repayable capital available for charities, non-profits, co-operatives, and for-profit social enterprises. The money that will be available through this fund is intended to help these “social purpose organizations” create and grow innovative programs and initiatives aimed at solving the most persistent and complex social, cultural, and environmental challenges in our society.

Third, what is the Investment Readiness Program? 

To help organizations access money that will be made available through the Social Finance Fund, the Investment Readiness Program will provide up to $100,000 in funding for eligible social purpose organizations. With this funding, these organizations will be able to access supports to build their capacity to accept investment and participate in Canada’s growing social finance market. Some examples of how this funding can be used include:

  • Explore a new business idea or develop a business plan to test your idea
  • Create a marketing plan to reach new audiences
  • Plan new products or services to grow revenue
  • Prepare documentation to approach potential investors

The Investment Readiness Program is currently underway and will run until March 31, 2021.

Fourth, how is Imagine Canada involved? 

As a partner in the Investment Readiness Program, Imagine Canada will be conducting a survey of registered charities to better understand the current readiness of charities to accept social finance. This survey, which will be launched in January 2020, will also help us better understand the barriers that hinder charities from participating in Canada’s growing social finance market and potential points of intervention.

Imagine Canada will be sharing survey findings to help charities make informed decisions about social finance and to help other actors in the social finance ecosystem engage charities more effectively. This effort will be supplemented by additional sense-making activities that will help charities understand key social finance-related concepts and terms and key characteristics of the social finance market.

Fifth, what do you need to know moving forward?

Community Foundations of Canada, a funding delivery partner in the Investment Readiness Program, has opened its application portal for social purpose organizations to apply for funding available through the Program. Organizations can apply for the current round of funding by February 10, 2020.  You can visit communityfoundations.ca and irp-ppi.ca to learn whether your organization is eligible for funding and how to apply for it. Applications for organizations in Quebec are also now open through Chantier de l’économie sociale.

There are three other partners in the Investment Readiness Program that will be making funding available to social purpose organizations: Canadian Women’s Foundation; National Aboriginal Capital Corporations Association; and the National Association of Friendship Centres. Please enquire with these organizations to learn more.

Imagine Canada will be providing regular communications to help inform charities of the latest developments and opportunities with the Investment Readiness Program and Social Finance Fund. Imagine Canada will also be providing informational resources to help charities better understand what social finance is and what it may mean for their organization. To stay up-to-date, follow us on our social media channels and subscribe to the Early Alert newsletter.

Source: Adam Jog; Imagine Canada: https://www.imaginecanada.ca/en/360/your-charity-ready-social-finance

The Sector

Free (Online) Consultation – COVID-19

The world is turned upside down, and it is clear that the current corona crisis is having a major social impact. This crisis is also very profound for many organizations and entrepreneurs. In times like this we need to help each other a bit. That is why we are happy to offer our time, knowledge and network in free coaching conversations (online, of course!) In the coming weeks. Do you need a sparring session or do you have a specific question about impact in general, or the impact of COVID-19 on your organization? We would like to see how we can help you with your challenge. For example, we can coach you for an hour in the field of impact management, or about the impact of COVID-19 specifically. With the latter you can think of:

What are the effects of COVID-19 on your organization?

  • What negative impact do you have to deal with, and how can you manage it ? Think of your core business (processes that are standing still, fewer activities), your people (HR matters, well-being of home owners), your stakeholders (customers, suppliers, supporters).
  • But also: Where do opportunities arise to make a positive social impact ? For example, by using the time, products or resources that have become available to make a positive contribution? What opportunities are there to reinvent your organization in the current situation?

We are happy to help you with a free (online) consultation to identify where the most important negative and potential positive impacts are for your organization, and how you can deal with them. 

In the conversation: 

  1. We make an inventory of the most important impacts for your organization,
  2. We determine where you can and want to take actions
  3. We identify potential partners and channels to support those actions, including through our own network.

Based on your situation and needs, we zoom in on the most relevant matters, looking at your organizational goals and activities, and at the people, planet and profit side.

Specifically, aspects can be discussed around finances, people, products and resources, skills and expertise, social capital, and nature and the environment.

What can you think of? 

We discuss the topics relevant to you, including:

Finance

  • Where is your biggest challenge with regard to available resources ?
  • Which emergency measures can you claim and how? For example, postponement or reduction of payment of taxes and VAT; borrowing with government guarantees.
  • How do you safeguard business continuity and crisis management ?

People 

  • Employee health and wellness: what guidelines do you have for ensuring health? How do you communicate this to your people? How do you facilitate optimal but also safe working from home with data protection? What actions can you take to ensure the well-being and team feeling of employees?
  • HR aspects : what does the situation mean for contracts, shortening working hours, salaries, engagements?
  • Time that is released: can you use it to make a positive contribution to society?

Products and resources

    • Which physical objects and products does your organization have? Which are not used now? How else do you use it for your own organization, or to make a positive contribution to society? Consider, for example, making hotel rooms available to the homeless or using IoT and VR glasses for isolated elderly people.

Skills and expertise

      • What knowledge and expertise does your organization have? How do you use it to make a positive impact? Can you contribute something to other organizations or society?
      • How do you use the time available to increase skills and expertise?
      • Think of: development of new products and services, training for employees.

Social and relationships

      • What social activities does your organization normally undertake that are now stalling? For example, offering internships and workplaces for people at a distance from the labor market , volunteering , or programs aimed at participation, health and talent development . In what alternative ways can you still create an impact during this crisis?
      • How can you mobilize your network or join forces with partners to make a positive difference?
      • How do you ensure a good communication strategy with your stakeholders?

Nature and environment

      • What natural resources does your organization normally use (such as land, water, ecosystem services)? What is the effect now that you do not use it or use it less, is there a nature restoration ?
      • Can you use the current situation to devise and test a more sustainable business model ?
      • How can you use nature reserves or other resources that you have available to create positive value?

Would you like to take advantage of this free advice? Please contact info@thesectorinc.ca

We wish everyone good luck and courage in the near future. Together we will get through this crisis!

#socialinnovation #impactinvesting #socialfinance #love #peace #change #sdgs #csr #covid-19 #mba #wbs #fundraising #consulting #socialenterprise