As expected, SoCap 2011 has been a whirlwind of activity. This year, there is a different vibe in the air, as many other participants from previous years have observed. Maybe it is the focus on entrepreneurs and the range of opportunities that were showcased at the conference. Or perhaps the number of new faces who were speaking at the various panel sessions. Or perhaps even the emphasis on "meaning" as a theme than was visible in the panels and sessions. Here's a quick summary of my highlights from the first two days of SoCap 2011.

In my preview post to SoCap, I indicated that I was looking forward to understanding better how the demand side of impact investing was evolving. I was hoping to get a better understanding of how investors and intermediaries are collaborating to source and close deals, and how entrepreneurs are increasingly more (visible) about what their needs are.

Well, SoCap11 has not disappointed so far. Right from the first couple of pages of the program agenda, where Kevin Jones articulates his vision for SoCap11, it is clear that there is an enhanced focus on entrepreneurs.

In the lead-up towards SoCap 2011, I’ve spent some time thinking about what I want to gain from this year's conference. As an attendee to prior SoCap conferences, I have had the privilege to reflect on the key issues and opportunities that have surfaced each year (see my posts here, here, and here).

It is no surprise that there is a groundswell of interest in the topics of impact investing and social finance. The first conference boasted an impressive number of attendees, despite (or perhaps, as a result of) it taking place in the midst of the worst financial crisis in a generation. It also witnessed the launch of an influential report by the Monitor Institute that proposed a vision for the growth of the impact investment industry.

Yes, it's that time of year again... as fall beckons, so does the world's premiere gathering of people involved in impact investing and social finance: the Social Capital Markets conference. SoCap, now in it's fourth year, takes place again at the scenic Fort Mason Centre in San Francisco next week from September 6-9. SocialFinance.ca has been covering SoCap since its inception, and we will be there again this year, as well as returning as a Media Sponsor.

There's clearly a lot going on in the world of social finance in Canada. As a result, it can sometimes be a challenge to keep track of the range of organizations and initiatives that are involved in building the infrastructure and practices on the ground. And perhaps more importantly, to gain an understanding of what is being learned, what isn’t working, and why.

On April 8, an event hosted by SocialFinance.ca, Social Innovation Generation (SiG) @ MaRS, Social Venture Exchange, and Social Venture Partners Toronto (SVPT) at the MaRS Discovery District aims to do just that. Nine practitioners, drawn from across the spectrum of how finance is being harnessed towards social benefit, will present on the best (and worst) practices in social finance. Speakers span the investor, enterprise, and intermediary worlds, as well as those that bring specific expertise in the area of social impact measurement, microfinance, and peer-to-peer lending.

This blog post is the first in a series curated by Al Etmanski on the topic of what leading thinkers would like to see become 'more visible' in 2011. You can download the complete collection of responses to Becoming Visible here: Download Becoming Visible. SocialFinance.ca will be cross-posting the contributions to Al's project that refer to social finance. Enjoy.

2010 saw several important developments in social finance in Canada and internationally, much of which has been blogged about and discussed at SocialFinance.ca. In 2011, I would like to see more opportunities for young people to take their interest in social finance to the next level, so that they can actually build a meaningful career in this area.

Perhaps chemistry has some lessons to teach us about how to catalyze the connections between the demand for, and supply of, social finance.

A chemical reaction occurs where specific amount(s) of reactant(s) combine to create (expected or unexpected) products. This reaction is a function of what the core substances are, as well as the process of combining the elements. Equations can provide us with a logical framework for predicting these outcomes, and we validate what happens in practice through continuous experimentation in a controlled environment.

So, what are the core elements of a “social finance reaction”?

There are often gaps between theory and practice in new and emerging areas, and often it is theory struggling to catch up with developments on the ground. Given the relatively nascent state of play around social finance in Canada, I would propose that this description fits accurately. A positive sign, however, is  the emergence of more Canadian-focused academic literature on social finance, as was recently the case at the Association for Nonprofit and Social Economy Research (ANSER) conference in Montreal.

Attendees at the Canadian Responsible Investment Conference expect to hear about the hottest trending topics from the panel sessions, with well-known terms and issues: Engaging with the Oilsands Sector, Innovations in Cleantech Investing, The G20 and Financial Re-Regulation, and Divestment and Engagement… and of course, (the obligatory) “SRI: The View From Europe”.

But a panel on impact investing and social finance? That’s probably new ground for many, given the relatively nascent stage of the discussions in Canada. An excellent panel was linked up to provide an introduction to impact investing to those that needed it, and a remainder to the rest of us around the emerging links between the world of responsible investing and social finance.

New support was recently announced for the Global Impact Investing Rating System (GIIRS), a ratings agency that provides comparable and transparent ratings about the social and environmental performance of enterprises seeking investment capital, as well as investment funds that invest in these businesses.

At a summit on entrepreneurship hosted by the Obama adminstration earlier this week, the Rockefeller Foundation, USAID and other partners have contributed $6.5 million to support the development and use of GIIRS to catalyze the flow of private sector investment into businesses that seek blended value (economic, social and environmental) returns in developing countries.

A special edition of the Making Waves magazine has been launched, titled "Capital for Communities". This edition explores the the central question of access to finance for community-based initiatives. Most nonprofits, social enterprises, and co-operatives identify capital as their key constraint, and when it is available, it if often not in the right form to meet the needs of these organizations. These organizations, and the respective sectors that they represent, continue to be undercapitalized related to the needs and pressures being placed on them, particularly in this economic environment.

This issue draws on perspectives from across the country in understanding and addressing the issue of access to finance. The articles range from a mapping of the financial ecosystem of the social economy, the challenges of financing social ventures, the importance of intermediaries, examples of how institutional investors can be engaged in social finance, and lessons from Quebec's experience with developing innovative social finance instruments. Collectively, these articles provide an excellent, multi-dimensional understanding of the key issues and opportunities around delivering more capital to communities.

I had the pleasure of presenting a session titled 'Social Capital Financing' as part of the Social Economy Lunchbox Speakers' Series at the University of Toronto. My excellent co-presenter, Anne Jamieson from the Toronto Enterprise Fund, and I discussed key issues and trends around social capital markets in Canada. My presentation focused on the supply-side of social finance, that is the capital looking to generate a blended value return.

I began with an overview of the Canadian social capital market, by providing an overview of the key players in each of the supply (social investors) and demand (social enterprises and nonprofits) sides, and the intermediaries that connect the two. The second half of the presentation focused on the issues, challenges and opportunities on the supply-side, where I described why I think there is much reason for optimism around recent movement from the supply-side that will enhance the level of activity around social finance in Canada.

Matthew Bishop and Michael Green have recently written an excellent article for the Innovations Journal titled "The Capital Curve for a Better World". The article is part of a volume prepared for the Tech4Society hosted in Hyderabad, India and offers compelling insights on social entrepreneurship and technology from leaders in the field (view the table of contents or full publication). Bishop and Green are also the authors of the recently-penned Philanthrocapitalist Manifesto, which proposes a number of 'radical' policy changes for the UK.

I recommend reading the entire article, as it spans important issues and opportunities around financing social innovation. There are several examples that illustrate the essential building blocks of a social capital market, and how they have - or can - be implemented successfully. A key theme is linking finance to the right kind of organization structure at the right time - and that this requires a more sophisticated understanding of social impact and metrics. On a related note, intermediary organizations can and should play a vital role in connecting demand and supply for social investment, but there is more work needed to build the right incentives and funding to establish and sustain these intermediaries.

One of the signs that there’s more activity around social finance in the last few months is that there are more jobs available in this line of work.

Three great organizations – the MasterCard Foundation, the Community Power Fund, and the Centre for Sustainability and Social Innovation at UBC – are all hiring for a number of exciting positions.

Investment in renewable energy continues to make the headlines across the world, and recently even more so in Ontario. Al Gore has called the Green Energy Act "the single best green energy [program] on the North American continent. A recently-announced $7 billion deal with Samsung to manufacture and deploy renewable energy technologies is a clear sign of government commitment to building a renewable energy sector. How can private sector finance take advanatge of these developments?

This Friday January 29th, the Green Energy Act Finance Forum will present financial sector attendees with information about the investment opportunities presented by the new Ontario Green Energy Act, and methods of participation in the market. Attendees will learn about the risks and rewards of investment in Ontario's FIT market from experienced international renewable energy financiers including Dexia, Deutsche Asset Management, Ernst & Young UK, and others.

There's a lot of buzz recently around all issues related to social finance - both here in Canada, and internationally. The recent national social enterprise conference has provided some momentum around policy initiatives and creating a community of like-minded individuals and organizations. And this evening, Toronto welcomes Jed Emerson at the MaRS Centre District.

Did I mention it is an exciting time?

The following is the full text of Alan Broadbent's keynote at the Third Canadian Conference on Social Enterprise held at MaRS on November 19, 2009.

"Social enterprise must be based on enterprise. Multiple bottom lines which aren’t sustainable financially only work when people are prepared to be paid on the same multiple basis.

In the meantime, we have important work to do in finding those effective new instruments for the support of social enterprises. It is critical, of course, to move beyond the aspirational stage where we identify ends but wait for others to develop the means. It is important to develop the means that are practical and ready to be implemented."

Two seminal reports commissioned by the Social Investment Organization (SIO) and funded by Environment Canada set the stage for enhanced adoption of responsible investment practices in the Canadian foundations and pensions sectors.

The first report, Best Practices in Responsible Investment for Canadian Pension Funds, authored by Mercer's Responsible Investment Team, provides an overview of responsible investment in Canada - the trends, the drivers, the global initiatives and how the Canadian pension community is involved - and provides recommendations that could help pension funds move from consideration of responsible investment to implementation.

The second report, Education and Training on Responsible Investing for Canadian Foundations and Endowments: An Inventory and Needs Analysis, co-authored by RI consultants Betsy Martin and Coro Strandberg, looks at the availability of resources and training on RI targeted at Canadian foundations and endowments.

Access to finance is often the issue that aspiring (and experienced) social enterprisers flag as the most challenging and most crucial for success. The introduction for the access to capital pillar on the social enterprise wiki describes some of the most pressing issues at play from a policy perspective in Canada:

All businesses require access to financial capital, especially investment and patient capital at start up and points of growth in the business. Social enterprises, by the nature of their predominantly non-share incorporation, have limited options beyond traditional grant models and straight forward loan arrangements. Grant income is not sustainable in the long term and loans, because they require an immediate repayment plan, could be a cash flow problem and often an expensive avenue to raise capital at a start-up or growth stage. New forms of patient capital and equity-like investments have to be developed, investor tax credits for social enterprise are needed and innovative share-based social enterprise incorporation models are required.  

I’d suggest that some of these areas require a closer examination, particularly as we move towards identifying key policy actions.

It’s not often that you hear Canadian politicians talk about social enterprise. Actually, it’s sometimes difficult to know whether many of them have even heard of the term. Of course, I am exaggerating slightly, since there are some good politicians across this country that are actively promoting for a more enabling environment for social enterprise.

The province of Quebec is often cited as the most prominent example of an active government stance towards facilitating social enterprise, with notable results. And the previous Liberal government had a strong commitment to community economic development (CED), which had positive spinoff effects for social enterprise activity in many areas.

What was striking about hearing the former prime minister of Canada, Rt Hon. Paul Martin, speak passionately about social enterprise is that he really believes in it, and is committed to advancing it through his commercial and philanthropic  ventures. Social Venture Partners Toronto played host to Mr. Martin on the 16^th of October, where he was invited to share his thoughts on his journey towards understanding social enterprise and how he has become both a strong advocate for, and active participant in, for social enterprise.

The Carleton Centre for Community Innovation is convening an international conference this week on responsible investing through the UN Principles for Responsible Investing (UNPRI) initiative. The Principles for Responsible Investment, convened by United Nations Environment Program and the UN Global Compact, was established as a framework to help investors achieve better long-term investment returns and sustainable markets through better analysis of environmental, social and governance issues in investment process and the exercise of responsible ownership practices. 

Following the initial conference of the PRI Academic Network held at Maastricht University in September 2008, this conference will bring 75 invited academics and practitioners, including representatives from the Canada Pension Plan Investment Board, Caisse de Depot, BC Investment Management Corporation, Toronto Dominion Bank, and Desjardins. Over the three days, twenty seven papers will be presented by a group of international academics, inlcuding ten papers to be presented by doctoral and masters students from around the world to encourage the next generation of academics on this topic.

Since launching less than a year ago, we've noticed an explosion of interest in the area of social finance. The blog format of the original site worked well initially, but we found much more demand for additional content and features. Several months ago, we were generously awarded a grant from SiG@MaRS towards building an entirely new site - the result of lots of hard work from a group of dedicated partners and contributors across the country.

We (hope that we) have built a platform that can stimulate conversations around the critical issues in social finance in Canada and overseas, where diverse individuals and groups can demonstrate how they are addressing social issues in their communities through the creative use of finance.

The new site has a number of exciting features that will benefit from an introduction. Let's get started...

I was fortunate to be featured in a recent article on social finance from Charity Village. In the conversation with Karl Noseworthy, which formed the basis of the article, I touched on the role of social finance as it related to the funding challenges that nonprofits face, the potential roles of corporations and hybrid organizations, some of the key trends around social capital markets, and the role of an online platform to influence social change.

Read the full article at the source, or below. And thanks to Charity Village for continuing to feature social finance as an emerging theme in the nonprofit arena.

Good Deals 2009: the Social Investment Almanack has just been published by Social Enterprise magazine in the UK. This is an excellent publication that goes some way towards demonstrating the maturity of the UK social finance space, at least compared to other countries (including Canada). As Angela Smith, the Minister for the Third Sector notes in the document, this work represents ” an unprecedented collection of think pieces and case studies that aims to build knowledge and inspiration among those operating in the social investment space as well as those looking in with curiosity from the outside.”

From the introduction:

As a UK publication focused solely on social investment, it is the first of its kind. The four chapters introduce the social investment marketplace and run through models that are well established, just taking off and those that are in the laboratory stage.

Our directory - the back section of the Almanack - brings this community together with feature profiles and alphabetical listings of names and contact details, providing a useful index of a range organisations involved in the supply, support and debate around this market.

Download the entire report from Social Enterprise Live.

The recently-concluded Social Capital Markets conference (SoCap09) in San Francisco clearly illustrated the tremendous interest we're seeing internationally around how "money and meaning" can come together. This year, we had a large Canadian contingent present that collaborated around a pre-conference "Canadian Day", where we had an opportunity to strengthen links between practitioners across the country, as well as define policy outcomes and objectives we'd like to see in the near future.

Sean Stannard-Stockton's blog - Tactical Philanthropy - has long been a credible and updated reference point on the current state of philanthropy and where it is headed. His insight and analysis has spawned critical commentary and responses from some of the leading thinkers in this space, and has demonstrated the tremendous latent demand for a clear and reasoned voice on issues related to social investing. Many other blogs, including this one, continue to be inspired by the breadth and depth of the issues that Sean weaves into his blog on a regular basis.

The following is a cross-post of Julia Moulden's original article at the Huffington Post on August 30, 2009.

Have you ever flown somewhere and, out of the blue, the captain makes an announcement that you're about to pass over, say, the Grand Canyon, and adds that people on the right side of the aircraft will have a great view? And then everyone from the left side leaps out of their seats and rushes over? And have you ever wondered if the pilots are compensating for that so that the plane doesn't tip over?

That image came into my head as I was thinking about San Francisco. Hundreds of people are heading there this week, and millions of others will be there in spirit - and online. If the Earth tips a little bit on its axis, you'll know why.

This year, there’s a sizeable Canadian contingent off to SoCAP09 in San Francisco. We’re committed to sharing our experiences in social finance with the international audience in attendance, as well as being connected to the Canadian community through blogs and twitter.

The latest issue of the Community Development Investment Review is out, and it’s an excellent and feature-packed issue. The Review is published by the Federal Reserve Bank of San Francisco (and SF is also where SoCap09 will be held), and brings together experts to write about various community development investment topics such as new financial tools and approaches, collaborations, best practices, and public policy.

Our friends at DreamNow - responsible for the excellent e-book Occupation Change The World, among other initiatives - have just posted an interesting job opportunity to work in social enterprise in Toronto. The application deadline is Monday, August 17, 2009 at 5:00pm.

As noted on the DreamNow blog, this is an exciting initiative for a number of reasons: "This is a great position based in Toronto that is all about making social enterprise accessible across race, class and privilege lines. This project has received funding for three years from the Youth Challenge Fund and is looking to build two centers in the East and West of Toronto to help bring social enterprise to needed areas of Toronto."

 

The Enterprising Non-Profits Program provides matching grants of up to $10,000 to nonprofit organizations that are exploring the development of business activities (social enterprises) for the dual purposes of generating revenue and furthering their mission. This funding allows nonprofits to access the technical assistance they need at any stage along the social enterprise development path, from idea exploration and development to project launch and growth.

To learn more about the ENP Program, visit the ENP-TO website and read the FAQs.

To register for an Orientation Session, click here.

To learn about and register for the free half-day Introduction to Social Enterprise workshop on October 6, click here.

An excellent report was recently released on access to capital for social enterprises and nonprofits in Ontario and Quebec by the Social Economy Centre at the University of Toronto. The project on Comparison of Policy Frameworks for Social Enterprises and Non-Profits in Ontario and Quebec is part of the Community-University Research Alliance for Southern Ontario's Social Economy.

The report begins with a contextual comparison of Ontario and Quebec, noting that there are significant historical and socio-political contextual differences between the two provinces which are reflected in the relationship of social enterprises with government and to society-at-large. The report then profiles the access to three distinct forms of capital in Ontario and Quebec - development capital, solidarity finance, and state finance.

A major Community Economic Development (CED) event made a mark at the beginning of June in Canada. The 2009 National CED Conference, "Full Circle: Sharing a Vision for the 7th Generation" was hosted at the University of Winnipeg in Manitoba. This event was also the occasion to celebrate the 10th anniversary of the Canadian CED Network (CCEDNet), a "member-driven organization that seeks to increase the scale and effectiveness of CED - helping organizations and individuals strengthen their communities and create solutions to local needs" (more about CCEDNet).

With assets under management projected to grow to $250 billion by 2016, CPP Investment Board is one of the largest and fastest growing institutional investors in the world. Headquartered in Toronto, with offices in London and Hong Kong, the CPP Investment Board is governed and managed independently of the Canada Pension Plan by experienced and highly skilled investment professionals. Their job is to prudently invest CPP assets to help pay future pensions.

The Analyst will contribute to the Responsible Investing team through company research, portfolio analysis, direct and collaborative engagement initiatives, and monitoring of emerging trends. This person will be experienced in the field of Responsible Investing, or related area, and bring enthusiasm and knowledge of corporate sustainability practices to the position.

Microfinance Funds Continue to Grow Despite the Crisis: As MFIs think about moving their funding "downstream", this recent report describes the tremendous rise in microfinance investment funds (MIVs).

Pushing the Boundaries on Mobile Banking and Microfinance: A fascinating paper, titled "M-Bureaus: M-Banking´s Next Killer Application?", explores the possibility of using mobile phone payment transaction history to determine credit information for customers at the bottom of the pyramid.

Raising Funds Online - What Microfinance Institutions Should Know: CGAP has released a focus note that highlights some important issues microfinance institutions (MFIs) may want to keep in mind before borrowing online.

Support for Social Enterprise in the UK (via @SEmagreporter): Lots of exciting news last week around the Social Enterprise Summit.

Brokering Investment for Social Enterprise: More from the UK, where The National Endowment for Science, Technology and the Arts (NESTA) and the Office of the Third Sector (OTS) have jointly funded a £90,000 year-long program that will pay a success fee to brokers whose investment advice results in funding for social enterprises.

NCIF Develops Tool to Measure Impact of CDFIs on Low-Income Communities: In order to measure and communicate the impact of financial institutions that serve low- and moderate-income communities, a report analyzing their impact was recently issued by the National Community Investment Fund (NCIF).

Community Banking Stays Strong: In related news, community banking in the US appears to be stable despite the continued volatility in the rest of the banking sector.

IRIS: Impact Reporting and Investment Standards (HT: Lucy Bernholz): The Rockefeller Foundation, Acumen Fund and B Lab have initiated the Impact Reporting and Investment Standards (IRIS) effort to create a common framework for defining, tracking and reporting the performance of impact capital.

Social Entrepreneurship as a business model (via @josephdee): Lisa Torjman from SiG@MaRS has pulled together an excellent presentation around social enterpreneurship, including an introduction to the Canadian context and the role of SiG and MaRS.

Social Entrepreneurs API announced (HT: Lucy Bernholz): The Skoll Foundation, PopTech, ideablob, Civic Ventures and SocialActions have announced the Social Entrepreneurs API - essentially an open database of social entrepreneurs. 

Social Innovation in a Post-Crisis World (via @narain): A must-read - this Special Edition of the Innovations journal for the World Economic Forum Annual Meeting 2009 features excellent articles by Klaus Schwab, J. Gregory Dees, Roshaneh Zafar, and many others.

Making CSR Believable: Chris Jarvis writes an excellent post on some of the core issues around CSR - how do companies create and foster trust through their investments in CSR? And what is the role of social capital in this dynamic?

The Philanthropist moves online (via Mark Blumberg's Canadian Charity Law blog): The Philanthropist is a quarterly journal that publishes articles and information of interest and assistance to managers and directors of Canadian charitable organizations and foundations, and their legal and financial directors.

Economic downturn - Crisis or Opportunity?: Joel Solomon encourages us to look at the current situation as an opportunity for transformation - both in the social sector, and in our individual living. 

Responsible Investing on the Rise: The Social Investment Organization recently released the Canadian Socially Responsible Investment Review 2008, which has revealed a significant rise in investment strategies that integrate environmental, social and governance (ESG) factors into financial analysis and portfolio management.

Social Innovation Fund update: There's been a lots of buzz every since the Obama Administration proposed the Social Innovation Fund to provide incentives to scale up the work of successful nonprofits. The Fund is now signed into law, and we now have more details around the Fund's intentions, including the $50 million ask for FY2010. America Forward has an detailed FAQ on what we know so far, and Nathaniel from Change.org digs even deeper. Canadian policymakers, are you following this?

This Canadian Socially Responsible Investment Review is the only comprehensive survey of socially responsible investment (SRI) in Canada. Now in its fifth edition, the document has been produced by the Social Investment Organization every two years since 2000.

Assets invested according to socially responsible guidelines have increased to $609.23 billion from $503.61 billion since 2006, a 21 per cent increase in two years when markets generally experienced great difficulty. The estimated share of total assets under management in Canada represented by assets under SRI guidelines is 19.9 per cent, comparable to the share in 2006 of 19.5 percent.

The Googlization of Philanthropy

UnLtd to prepare social enterprises for funding

Leadership deficit in the nonprofit sector

The Socially Responsible Intern Surplus

Grantmaking Trends in 2009

Obama and Social Innovation - Yes We Are!

Holding Canadian extractive companies accountable

An exciting announcement was made at the Skoll World Forum - the Aspen Network of Development Entrepreneurs (ANDE), based at the Aspen Institute, has garnered the support of 35 organizations to collectively manage more than $750 million during the next five years.

 

The Skoll World Forum commenced this week at Oxford, UK - billed as the "Davos of social entrepreneurship", it will play host to over 800 delegated from 60+ countries. Take a look at the impressive agenda and speakers list.

If you can't attend in person, the organizers have made it relatively easy to follow along:

• Twitter at #SWF09: @SkollWorldForum, @SocialEdge, and a whole lot of other people
• Live audio and video of sessions
  
• Social Edge is covering the Forum here
• Nathaniel from Change.org posts his thoughts and some excellent video interviews on his blog

Nonprofit Mergers and Acquisitions (via Mission Measurement): The Bridgespan Group have authored this report that analyzed 3,300 deals across four states over 11 years.

Questions about Prize Philanthropy (via Chronicle of Philanthropy): A recent report by McKinsey examined the proliferation of prize philanthropy by private foundations, businesses, and governments. These prizes provide significant incentives in some cases, but are not necessarily appropriate for other situations.

The Foundation Review launches (HT: Tactical Philanthropy): The Foundation Review is the first peer-reviewed journal of philanthropy, written by and for foundation staff and boards, and those who work with them implementing programs.  

 

What's in an MBA?: Sarah Cliff wades into the debate around b-school education.

CAPE (Capital for Aboriginal Prosperity and Entrepreneurship) Fund is a $50 million private-sector investment fund recently launched by the former Prime Minister of Canada, Rt. Honourable Paul Martin and his son David Martin. CAPE Fund will be focused on mid-market opportunities with a strong degree of Aboriginal involvement and connection to Aboriginal communities throughout Canada.

The Fund’s sole investment focus will be to partner with Aboriginal groups and individuals to promote Aboriginal business, entrepreneurship and prosperity.  The Fund will partner in businesses by providing equity and quasi equity investment in varying amounts in the range of $1 million and $7.5 million (with most investments expected to be in the $3-5m range). These investments may be "one time" or "staged" depending on the growth and business requirements of the Fund's investee companies. CAPE Fund will not make investments in start-ups, unless they are backed by a strong and credible operating partner or that, at the very least, there is complete depth and experience in the management of the investee company.

The MasterCard Foundation - one of Canada's largest - is independent, private foundation based in Toronto, with an endowment of over $1 billion. The Foundation primarily invests in microfinance and youth education, and has recently made some significant investments in microfinance internationally. The Foundation is hiring for a Program Manager for the Microfinance Program.

Investing Responsibly in Canada: Yes it's RRSP season again, and thegreenpages.ca has pulled together a useful guide of some of the key resources and RRSP-eligible funds that you can invest in.

The Potential for Social Entrepreneurship in Ontario (via Tonya Surman's blog): Working paper by Andrea Baldwin from Canadian Business for Social Responsibility on why social entrepreneurship can be an important driver of economic and social growth, and what conditions are needed for social entrepreneurship to reach its growth potential in Ontario.

First Loss Capital (hat tip: Tactical Philanthropy): The Lemelson Foundation in Portland has started a financing program, First Loss Capital, to help help nonprofits and social entreprises obtain debt financing through a “cash cushion” into the deal.

Investing in Microfinance Funds: Despite (or because of?) the financial turmoil in credit markets, there have recently been a string of investments in microfinance funds.

Turning on the Development Finance Tap: An interesting article from Ethical Corporation Magazine around the potential overlap between development policy and base of the pyramid business in emerging markets.

Riskmetrics to Acquire Innovest: The combination of two prominent providers of ESG research and analysis, RiskMetrics Group and Innovest Strategic Value Advisors, should greatly enhance the quantity and quality of data available to socially responsible investors, and go some way towards pushing the boundaries of the measurement/metrics debate.

Why Philanthropy Wins in a Web 2.0 Culture: An excellent post by Sean from Tactical Phlanthropy on the role of social media for philanthropy. The implications are profound - read it!

10 online resources for social entrepreneurs: Dan Martin's list includes Social Edge, UnltdWorld, Ashoka, and Change.org

The following post was authored by Michele Tarsilla on a symposium on Measuring the Impact of Doing Good held at the University of Toronto.

Measuring results, as challenging as it could be, is nowadays an indispensable activity for all non-profits in Canada that want to stay abreast of the increasing competition within the sector, aggravated by the ongoing financial crisis. That notwithstanding, a considerable number of non-profits nationwide are still struggling to meet the funders’ growing demand for accountability and effectiveness, primarily because they lack the technical capacity to conduct rigorous evaluations of their programs’ impact.

As a result, there is a lack of evidence on the actual benefits produced by a large contingent of social programs and that ends up questioning quite severely the non-profits’ legitimacy vis-à-vis the public opinion. As no viable strategy seems to be available to alter the current scenario as of today, a general consensus is urgently needed within the sector on the two following issues:

• turning impact evaluation into a strategic management tool
• enhancing mutual understanding and closer technical collaboration between funders and non- profits

Given the current challenges but also the opportunities embedded within the Canadian Third Sector, the Rotman School of Management’s idea of organizing a symposium on measuring the impact of doing good was particularly welcome. The general response to the Toronto event was so positive that over 200 representatives of non-profit organizations and funders attended it on January 21, 2009.

The UK Government recently announced a commitment of £42.5 million to help volunteers, charities and social enterprise. Highlights include:

• Up to £10 million investment in volunteer brokerage scheme for unemployed people with create over 40,000 opportunities for people to learn new skills and give back to communities through volunteering.
• A £15.5 million Community Resilience Fund will provide grant funding to small and medium providers in our most deprived communities. This is in addition to the £130 million already committed to the Grassroots Grants programme meaning more small grants to more community groups.
• A £16.5 million modernisation fund to help with the cost of mergers, partnerships and moves to more efficient sharing of back office functions for at least 3000 third sector organisations.
• A £0.5 million investment in the School for Social Entrepreneurs to double the number of people it trains to become social entrepreneurs, particularly those working in deprived communities.

There are lots of discussions are how we can build a social finance`"ecosystem", and I've often remarked that we should look to the microfinance industry for ideas, lessons, and inspiration.

Microfinance has evolved into an industry that isn't niche anymore - millions of people access small loans and repay them back on time, while also taking advantage of microinsurance and a number of emerging products tailored to their unique needs - since more often than ever before, previously "unbankable" clients now have access to financial products from a range of providers. Competition has encouraged MFIs to move upstream and commercial banks to move downstream. More capital has come in from larger funds and institutional investors. We're now seeing the impact of technology - from Kiva to M-Pesa and Wizzit.

Monitor Institute recently released an excellent report on the state of impact investing, how it has evolved, who is doing it and how, and where it may go. You can download the Full Report or the Executive Summary. As noted in the report, the key findings describe:

• The current state and shape of the industry at a critical moment in its development — so you can locate yourself in the current landscape, relect on its opportunities and challenges, and understand what has catalyzed other industries at this phase of evolution
• How impact investing might evolve — so you can develop an understanding of what the future may hold, including the promise and tradeoffs of pursuing different strategies
• An approach for accelerating the growth and impact of this style of investing — so you can assess what you can do to seize the business opportunities inherent in it and understand what could be achieved by joining with others
• A call to action — so you can understand the importance of the moment and can develop a concrete sense of what success in building a marketplace for impact investing might look like in the months and years ahead

There is a lot of interest among new graduates and young professionals around careers prefixed with "social"... social finance, social entrepreneurship, social innovation, etc. Many of these smart, educated young people want to change the world, make some money, save the environment and have a balance in their lives. And more.

However, there seems to be a dearth of jobs that can allow young professionals to engage in these areas as part of their "day job". Volunteer opportunities exist, and increasingly so, but there are still big questions around career prospects in this space. I've been there: before landing my (awesome) current gig at Social Capital Partners, I've worked in strategy and business planning, community economic development, social finance, social entrepreneurship, microfinance, and human rights.

The world's third-richest man has moved on from Microsoft to take a full-time role in managing his Foundation, and recently penned his first annual letter around his goals and vision for the Gates Foundation - inspired, of course, by fellow billionaire (and the man at the top of the rich list) Warren Buffet.

Here's the presentation that Michael Lewkowitz, Kerry Golden, Allyson Hewitt and I gave at MaRS (details on the event here) on SoCap08 and potential implications for Ontario.

For more context, see the written recap by Michael and Kerri as well as my comprehensive posts on Day 1, Day 2, and Day 3.

Several people have asked for the presentation that Michael Lewkowitz, Andrew Dilts and I made at Studio Earth. As well as being a useful introduction to social finance, it's probably one of the only times you'll find quotes by Karl Marx, Ayn Rand and Pink Floyd all in one place!

On a more serious note, this presentation was meant to provide some context around the broader social issues that we face, and stimulate conversation around "innovative" roles that finance could play in meeting some of these challenges. By changing the nature of the conversation around how capital and social issues intersect, we can provide new perspectives on specific social finance products and vehicles, but also build the foundation for broader systems change (which is even more important given the continued turmoil in the financial markets).

A great example of innovation in social finance - the Global Alliance for Vaccine Immunization will offer Japanese bond investors higher-than-average yields to fund a program providing vaccinations to children in poor nations.

The goal is to raise upto $500 million through philanthropy, government contributions and private investors. Funds will be used primarily used to purchase vaccines, with the remainder spent on distribution and helping local authorities expand their health-care systems.

Responsible investing, sometimes referred to as socially-responsible investing, describes investment strategies which seek to maximize both financial return and social good. Specifically, it is the integration of environmental, social, and governance (ESG) issues into investment decisions.

In Canada, the Social Investment Organization (SIO) and Shareholder Association for Research and Education (SHARE) have taken leadership roles through proxy voting and shareholder engagement services, while also raising awareness through research and policy advocacy.

Tides Top 10 of 2008: If you haven't seen this already, check out Tides Canada's annual list of outstanding social change organizations.

On Social Enterprise in the UK (hat-tip: Volans): An interview with Kevin Brennan, the Minister for the Third Sector, where he talks about the importance of social enterprise, its potential impact on public service delivery, the need for "lift-off" finance and more emphasis on measurement.

Social Entrepreneurship on Campus: Nathaniel from Change.org has a great post on trends and opportunities for social entrepreneurship at universities.

Charities Borrow For-Profit Strategies To Do Good: Well-written article from the Christian Science Monitor that describes recent interesting developments in the "hybrid" space in between the non-profit and for-profit worlds. References to social entrepreneurship, philanthrocapitalism, microfinance, L3Cs, and more.

Mission, Inc.: The Practitioner's Guide to Social Enterprise: New book by Kevin Lynch (Rebuild Resources) and Julius Walls (Greystone Bakery) that draws on their own organizations and learning from 20 other social enterprise leaders around what it takes to succeed in starting and running a social enterprise.

Mandatory CSR Reporting in Denmark: Denmark's 1,100 largest enterprises will now be compelled by law to describe their corporate CSR or socially responsible investment policies, the ways in which they've been implemented and the results they've produced.

Happy New Year from socialfinance.ca!

We've seen tremendous excitement and energy in the Canadian social finance space in 2008, and 2009 looks like it will build on this success, and challenge us to do more to creatively harness finance for social good.