The federal government says its plan is to catalyze $2 in private social investment for every $1 spent throughout the $755 million Social Finance Fund’s administration. That’s a huge amount of money for social purpose intermediaries.
How an $18.6 million dollar fund helps community organizations beat speculators and own their own spaces
The real estate crisis is forcing community organizations to devote more and more of their funding to rent at a time when demand for their services is growing. Moving isn’t an option for community-based organizations who need to be where their clientele is, but innovative social finance could provide solutions.
Canada’s small-scale farmers and food producers face a myriad of challenges, including access to capital. Could community investment funds provide a solution, while also building resilient food systems and healthy people?
Non-profits and co-operatives could be leveraging community bonds and preferred shares to raise capital, but many don’t. A new pilot program in Quebec hopes to change that by matching every dollar invested.
Transitioning to a low-carbon economy and society requires buy-in and intentional actions from publicly traded corporations, not just social purpose companies. Shareholders can push for climate action should they choose to exercise their power. Will they?
Non-profits’ gross domestic product (GDP) was $185.8 billion in 2020, representing nine per cent of Canada’s total GDP. Over the 2010 to 2020 period, the real GDP of non-profit institutions outpaced that of the overall Canadian economy in five out of 11 years. The real GDP of non-profit institutions grew by an annual average of 1.9 per cent over the 11 years, faster than the total economy (+1.5 per cent).
Real estate developers have little to gain from building affordable units. Even when laws force them to include those units in their projects, like Montreal’s 20-20-20 rules, they pay a fine not to do so. Non-profit housing is still the most efficient way to ensure a critical mass of long-term affordable units in a community.
Montreal’s Radish plans to be the first co-op in the world to issue shares. Those shares would not guarantee voting rights, only economic rights. Co-op members would keep all the influence. Will it work? This conversation concerns financial innovation, finance’s role in hyper-local ventures, investors’ extra-financial motivations, and the risk of mixing money and the common good.
Nature Investment Hub hopes to generate $20B for natural land conservation and restoration in Canada
In 2022, the United Nations adopted the first multilaterally agreed definition of Nature-Based Solutions (NBS). This December will see Cop 28, the international conference to assess progress on the 2015 Paris Agreement goals to combat climate change. It will include the launch of the first State of NBS report. NBS can save more CO2 annually than the emissions from the entire global transportation sector and reduce the intensity of climate hazards by 26 per cent.
Over the last decades, a vast amount of federal money has been injected to address socio-economic issues. However, there have yet to be outstanding successes in changing the trajectory of socio-economic indicators, such as overall health, education and environmental issues. Outcomes financing might be a valuable tool to address some of these challenges.
Through solutions journalism, Future of Good highlights what might go right tomorrow and who’s showing the way in the social finance ecosystem. With a critical eye, we keep the reader up-to-date on how finance is being shaped to be a tool, not an end.
Most investment decisions made by private markets directly and indirectly affect children. But unlike other beneficiaries who can organize and lobby, children are underrepresented in investing analysis and decision-making.