Impact investing can go very wrong. Here are the three biggest pitfalls the social finance fund should avoid

Author Jack Graham
Mixing profit and purpose is tricky, say impact investors

Why It Matters

The social finance world loves to talk about the โ€œwin-winโ€ of social and financial returns. Failures, however, get much less airtime. As the governmentโ€™s Investment Readiness Programs helps organizations prepare for social finance, understanding potential pitfalls could prove vital to maximizing positive social and environmental impacts โ€“ and avoiding some negative ones, too.

var TRINITY_TTS_WP_CONFIG = {"cleanText":"Impact investing can go very wrong. Here are the three biggest pitfalls the social finance fund should avoid. In Winnipeg\u2019s North End, an Indigenous-owned grocer, restaurant and gallery opened its doors in 2013 to revitalize the low-income neighbourhood. The social enterprise, called Neechi Commons, secured a 50,000-square-foot building with a large mortgage. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Five years later, however, the Commons was forced to close after strugg

Join a community of 2000+ impact-oriented professionals like you. Get full access to this story and all Future of Good content, including tickets to our digital events and networking, with a membership.