Presentation at a session titled "Investing for Impact: New Ways Capital is Flowing to Social Good". Describes the Canadian social capital market, the role of intermediaries, and the opportunities in place for social investors.

1. Investing for Impact: Supply-Side Perspectives Karim Harji Manager, Partnership Development – Social Capital Partners Co-founder – socialfinance.ca Investing for Impact: New Ways Capital is Flowing to Social Good Cambridge, ON 29 March, 2010 1

4. Social finance is an approach to managing money that delivers a social dividend and an economic return. (Wikipedia)

5. Also known as… social investing , responsible investing, ethical investing, double or triple bottom line investing, impact investing, targeted investing , etc etc.  there are important differences!

6. Goes beyond simply capital for non-profit social enterprises3 See: Karim Harji and Tessa Hebb (2009) “The Quest for Blended Value Returns: Investor Perspectives on Social Finance in Canada”, http://www.carleton.ca/3ci

8. Vancity – Canada’s largest Credit Union : 400,000 members, $14.5 billion in assets

9. Meritas – mutual fund committed to SRI: screening guidelines, shareholder activism and community development investments (up to 2% for microfinance)

10. Registered Disability Savings Plan (RDSP) – tax-deferred savings vehicle to assist families in planning for long-term financial security of their relatives with disabilities

11. Great Bear Rainforest Fund – public-private-philanthropic partnership structured to allow investments in ecologically-sustainable ventures within First Nations’ communities

12. Social Venture Partners (3 Canadian chapters) – network of engaged philanthropists that provide money and expertise for capacity building of nonprofits

13. CAPE Fund – $50 million fund launched by Paul Martin to provide equity and quasi-equity investment in the range of $1 million and $7.5 million to Aboriginal businesses

14. Enterprising Non Profits (BC/ON) – provides matching grants to non-profit organizations that are interested in starting or expanding a business

15. Ottawa Community Loan Fund (OCLF) – loans of up to $15,000 to small business owners, internationally-trained professionals, social enterprises, community groups.4

16. Elements of a Social Capital Market 5

17. The Social Finance Continuum 6 Sources: F.B. Heron Foundation and Jessica Shortall (2009) “Introduction to Understanding and Accessing Social Investment”

19. Alterna Savings

20. Canadian Co-operative Association

21. Citizens Bank

22. Desjardins

24. Community Loan Funds (various: Ottawa, Montreal, Toronto, St. John)

27. Ecotrust Canada Capital

28. Fonds de solidarité

29. Investeco

30. Renewal2 Investment Fund

31. Resilient Capital

33. J.W. McConnell Family Foundation

34. Maytree Foundation

35. Ontario Trillium Foundation

37. Toronto Enterprise Fund 7

39. CRA: over 161,000 nonprofit and voluntary organizations, of which approximately 83,000 are registered charities. (Pearson 2008)

41. Québec has over 6,200 social economy enterprises employing more than 65,000 people and generating over $4 billion in revenues (Pearson 2008)8 Source: Karim Harji and Tessa Hebb (2009) “The Quest for Blended Value Returns: Investor Perspectives on Social Finance in Canada”, http://www.carleton.ca/3ci

42. Aligning Demand and Supply 9 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx

44. Carleton Centre for Community Innovation

45. Sauder School of Business

47. Social Innovation Generation

48. Community Futures Development Corporations

49. Ontario Nonprofit Network

50. Chantierl’EconomieSociale

52. Canadian Community Investment Network

53. Community Foundations of Canada

55. Canada Revenue Agency

57. First Nations Finance Authority

59. Mission Investing via Intermediaries 11 Source: FSG Social Impact Advisors (2007) “Aggregating Impact: A Funder’s Guide to Mission Investment Intermediaries“

61. Provides low-cost financing for second-mortgage financing, and as necessary, primary-mortgage financing

62. Structured as investment grade instrument offering a five-year GIC rate of return It took 7 years before PSAC was able to find a “risk-free vehicle” to be able to do this! 12 Adapted from: Causeway, SiG, Volans (2009) “Building The Case for Social Finance in Canada”

63. Building the Social Capital Market 13 Source: Monitor Institute (2008) “Investing for Social & Environmental Impact, A Design for Catalyzing an Emerging Industry”

70. Optimizing for environmental & social impact AND applying the rigor of investment management tools;

71. Investing in new markets & asset classes AND maintaining exposure to traditional investment strategies;

72. Embracing new business models AND adhering to recognized financial theory;

73. Evaluating impact performance AND subjecting investments to recognized financial benchmarks; and

74. Expanding the scope and scale of philanthropic capital AND maintaining adherence to fiduciary responsibilities.16 Source: Rockefeller Philanthropy Advisors (2009) “Solutions for Impact Investors: From Strategy to Implementation”

75. Thank You! Karim Harji karim@socialfinance.ca 416-646-1871 x.108 www.socialfinance.ca www.socialcapitalpartners.ca Presentation available at: www.slideshare.net/kharji 17