Ten years ago, a concerted effort began to accelerate Canada’s social finance ecosystem. In 2020, this ecosystem faces the most significant social challenges yet – but is it ready? We spoke to those who helped build it, alongside international experts, to find out how far Canada has come, and what must happen next. This story is in partnership with MaRS.
The next 10 years will be critical to solving some of the world’s toughest problems. Climate change mitigation has a looming deadline (certainly within a decade). Poverty, food insecurity, and gender inequity are on the rise post-pandemic. And 2030 is the deadline for the UN’s Sustainable Development Goals. How will social finance contribute to solutions over the next decade?
The social finance world loves to talk about the “win-win” of social and financial returns. Failures, however, get much less airtime. As the government’s Investment Readiness Programs helps organizations prepare for social finance, understanding potential pitfalls could prove vital to maximizing positive social and environmental impacts – and avoiding some negative ones, too.
Social finance could help charities support Canada’s COVID-19 recovery and become sustainable, but many are not ready for investment. Two-thirds of charities don’t even know what it is. Having lost billions in revenue, charities cannot afford to miss out on new sources of income.
The Prime Minister’s upcoming Throne Speech will set the tone for the federal government’s post-pandemic recovery plan. Updating and prioritizing the Social Innovation and Social Finance Strategy in this recovery plan would bolster the social impact sector — at a time when it’s simultaneously struggling to stay afloat and seeing steep increases in demand.
Homelessness rates will rise from already crisis-level after the pandemic. Systemic racism means racialized communities could be left behind in recovery. And underlying all this is that COVID-19 won’t be the last global crisis we face — climate change will make sure of it. These problems need innovative, long-term funding. Just in time for the launch of Canada’s $755-million Social Finance Fund.