The Canadian government wants to improve the Investment Readiness Program. Here’s what 11 sector leaders say needs to happen.

The Social Finance Fund’s Investment Readiness Program is getting a reboot. 

Buried in April’s federal budget was a promise to extend the $50 million, two-year program aimed at helping social purpose organizations develop business plans, expand their products and services, and develop employee skills. It’ll run for another two years at a time when many social finance leaders are calling for additional investment readiness support, especially for smaller charities and nonprofits. 

According to data from Community Foundations of Canada, the program’s latest round of funding reached 243 different social purpose organizations. Nearly half were registered charities, while a combination of not-for-profits, for-profit organizations, and co-ops comprised the rest of the successful applicants. Community Foundations of Canada says the list of projects selected for the IRP’s second round of funding was geographically diverse and included a wide variety of social purpose organizations. 

However, the federal government believes more can be done to improve the delivery of the program. In a briefing the day after the Liberal government tabled its latest budget, Social Development Minister Ahmed Hussen called on sector leaders to give feedback on the IRP’s design and impact — and how it could be improved. (Full disclosure: Future of Good was a successful recipient of the IRP). 

Future of Good spoke to 11 recipients, social finance organizations, and intermediaries responsible for administering the IRP with one simple question: Given that the federal government has extended the Investment Readiness Program by another two years, what’s one way you’d recommend they improve the program this time around? 

Here are the answers we received back. Responses have been edited and condensed for clarity.

 

Karen Ball, president and CEO, Calgary Chamber of Voluntary Organizations

“Like all support programs, flexibility to respond to individual organizational needs is key. The IRP program, although fairly flexible in many ways, does have fairly tight timelines for project deliverables that can be challenging to work within. Broader is better around definitions of social enterprise, timelines, and use of funds in supporting social entrepreneurship.”

 

Victor Beausoleil, executive director, Social Economy Through Social Inclusion (SETSI)

“Ensuring that a Black-led Investment Readiness Partner is included amongst the intermediaries is an important step towards greater inclusion, diversity, equity and access in the social innovation and social finance ecosystem. The current ecosystem is not adequately meeting the resource and capacity needs of African Canadians who are not just underrepresented, we have been historically excluded.” 

 

Fallon Butler, founder, GoodSort

“I applaud the Investment Readiness Program for providing organizations the opportunity to take risks in exploring social enterprise initiatives through social finance. However, without more investment in social finance mechanisms available in Canada, these worthwhile projects may not be able to thrive and grow. I would recommend that the fund consider a phase two round of growth investments that is partially repayable and would provide a pool of funds year after year to help more organizations continue to innovate and become more sustainable.”

 

Sagal Dualeh, Director of IRP, Canadian Women’s Foundation

“Embedding more time for planning at the start of the program allows for a more systems-based approach to collectively and intentionally impact Canada’s social finance and social innovation sector, and really address sector-wide issues, from inherent power dynamics in finance and investment spaces, to more awareness of gender equity and GBA+ considerations across the sector.”

 

Nadine Duguay-Lemay, CEO, Dialogue New Brunswick

“It would be helpful to have assigned mentors who can guide (IRP recipients) along in the project. It is one thing to receive the funding and put the pieces of the puzzle together, but guidance is required along the way.” 

 

Cindy Fuchs, executive director, Saskatchewan Roughriders Foundation

“In the next go around it would be helpful if they allot the budget to cover the total ask from organizations so the work in the IRP can be done properly…I understand this was common.”  

 

Sarah Leeson-Klym, regional networks director, Canadian CED Network

“A key piece is to put equity front and centre across all facets of the next IRP partnership. Over the course of the first round, equity and inclusion became an increasing focus with awesome partners bringing a range of perspectives to the table, but we hope to see equity-seeking groups deeply prioritized and in key roles with ample resources, right from the start of the new program.”  

 

Chelsey MacNeil, director of education, employment and social enterprise, Choices for Youth

“When setting the provincial allocation of IRP funds, I think it is important to ensure that the funding amounts are determined by methods other than simply population. In the Atlantic Canadian context, there are many opportunities for generating unique solutions to complex problems, however, without the availability of resources for smaller urban centres; along with rural, remote and Northern regions, this will be a missed opportunity.” 

 

Lauren Sears, Partner, Imaginal Ventures 

“The IRP process needs to be more receptive to funding impact-driven organizations with a for-profit structure the second time around. Any for-profit I know that applied did not receive funding, and these are companies with real product-market-fit and traction. They are on the cusp of refining their models.” 

 

Adam Spence, founder and CEO, Social Venture Connexion (SVX)

“The ecosystem would be well served by expanding the program beyond direct funding to social purpose organizations (SPOs) to allocate a portion of the funding to support the start-up and scale-up of critical ecosystem infrastructure from place-based impact investing funds to venture support programs or social innovation spaces across the country. If the Social Finance Fund is to succeed in the long-term, it is vital that we have a vibrant array of new and scaled up intermediaries across Canada that can capitalize and support SPOs.”  

 

Nanase Tonda, executive director, Girls Inc. of Northern Alberta

“Our one wish for the IRP will be to allow for a longer implementation period or multi-year window with increased flexibility in eligible expenses.”