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Mobilizing Private Capital for Public Good

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Mobilizing Private Capital for Public Good Mobilizing Private Capital for Public Good Canadian Task Force on Social Finance December 2010 The Task Force on Social Finance was conceived by Social Innovation Generation (SiG)* to identify opportunities to mobilize private capital for public good, within either non-profit or for-profit enterprises. In the spring of 2010, the Premier of Ontario, Dalton McGuinty, encour- aged the Task Force in a letter to SiG to: “help social enterprise and social purpose business The Task Force on Social Financeadopt was social conceived innovation by Social business InnovationThe models; Task ForceGeneration and on develop Social (SiG) recommendations Finance* to was conceived to enhance by Social public Innovation Generation (SiG)* to identify opportunities to mobilizeand privateprivate capitalsector supportfor public of good, identifysocial within finance opportunities either to unleash non-profit to mobilizeits full or potential private capitalin Ontario.” for public good, within either non-profit or for-profit enterprises. In the spring of 2010, the Premier of Ontario,for-profit Dalton enterprises. McGuinty, In the encour- spring of 2010, the Premier of Ontario, Dalton McGuinty, encour- aged the Task Force in a letter to SiG to: “help social enterpriseaged and the social Task Forcepurpose in abusiness letter to SiG to: “help social enterprise and social purpose business adopt social innovation businessThe models; members and of develop the Task recommendations Forceadopt are: social innovationto enhance business public models; and develop recommendations to enhance public and private sector support of social• Ilse financeTreurnicht to unleash, Task Force its full Chairand potential private and CEO insector Ontario.” of MaRS support Discovery of social District finance to unleash its full potential in Ontario.” • Tim Brodhead, President and CEO of The J.W. McConnell Family Foundation • Sam Duboc, Chairman of Pathways to Education Canada and Founder of Edgestone Capital Partners The members of the Task Force• Stanley are: Hartt, Chairman ofThe Macquarie members Capital of the Markets Task Force Canada are: • Ilse Treurnicht, Task Force Chair• Tim and Jackson CEO of, CEO MaRS of Discoverythe Accelerator• Ilse District Treurnicht Centre ,and Task Partner Force Chairof Tech and Capital CEO of MaRS Discovery District • Tim Brodhead, President and• Rt.CEO Hon. of The Paul J.W. Martin McConnell, Former Family•Prime Tim Minister BrodheadFoundation and, PresidentMinister of andFinance CEO and of TheFounder J.W. ofMcConnell Cape Fund Family Foundation • Sam Duboc, Chairman of Pathways• Nancy to Education Neamtan Canada, President and Founder •and Sam ofExecutive EdgestoneDuboc, Chairman Director Capital of of Partners Pathways The Chantier to Education de l’économie Canada and sociale Founder of Edgestone Capital Partners • Stanley Hartt, Chairman of• Macquarie Reeta Roy Capital, President Markets and Canada CEO• Stanley of The MasterCardHartt, Chairman Foundation of Macquarie Capital Markets Canada • Tim Jackson, CEO of the Accelerator• Tamara CentreVrooman and, CEO Partner of Vancity •of Tim Tech JacksonCredit Capital Union, CEO of the Accelerator Centre and Partner of Tech Capital • Rt. Hon. Paul Martin, Former •Prime Bill MinisterYoung, Presidentand Minister of of Social Finance• Rt. Capital Hon. and Founder PaulPartners Martin of Cape, Former Fund Prime Minister and Minister of Finance and Founder of Cape Fund • Nancy Neamtan, President and Executive Director of The• Chantier Nancy Neamtan de l’économie, President sociale and Executive Director of The Chantier de l’économie sociale • Reeta Roy, President and CEOResearch of The MasterCardand policy support Foundation• was Reeta provided Roy, President by: and CEO of The MasterCard Foundation • Tamara Vrooman, CEO of VancityJed Emerson, Credit Union blendedvalue.org;• Tamara Len Farber, Vrooman Ogilvy, CEORenault; of Vancity Aaron CreditGood, UnionPublic Policy Forum; • Bill Young, President of SocialTessa Capital Hebb, Partners Carleton Centre for• Bill Community Young, President Innovation; of SocialTom Haubenreisser, Capital Partners TCH Consulting; Charmian Love, Volans; Susan Manwaring, Miller Thomson; Liz Mulholland, Mulholland Research and policy supportConsulting; was provided and by: Nora Sobolov,Research Community and Forward policy Fund.support was provided by: Jed Emerson, blendedvalue.org; Len Farber, Ogilvy Renault; JedAaron Emerson, Good, Public blendedvalue.org; Policy Forum; Len Farber, Ogilvy Renault; Aaron Good, Public Policy Forum; Tessa Hebb, Carleton Centre forThe Community Task Force Innovation; staff team Tom includes:Tessa Haubenreisser, Hebb, Carleton TCH Consulting;Centre for Community Innovation; Tom Haubenreisser, TCH Consulting; Charmian Love, Volans; SusanRobin Manwaring, Cory, Tim Miller Draimin, Thomson; Allyson LizCharmian Mulholland,Hewitt, Love, Adam Mulholland Volans; Jagelewski Susan and Manwaring, Joanna Reynolds. Miller Thomson; Liz Mulholland, Mulholland Consulting; and Nora Sobolov, Community Forward Fund. Consulting; and Nora Sobolov, Community Forward Fund. The Task Force staff team includes:The Task Force recognizes theThe pioneering Task Force efforts staff of team Sir Ronald includes: Cohen's Task Force on Social Robin Cory, Tim Draimin, AllysonInvestment Hewitt, Adam in the Jagelewski UK, and their andRobin process Joanna Cory, served Reynolds.Tim Draimin, as a model Allyson for Hewitt, this report. Adam Other Jagelewski significant and Joanna Reynolds. contributors to the Task Force initiative can be found on the last page of this report. The Task Force recognizes the pioneering efforts Furtherof Sir Ronald informationThe TaskCohen's Force on Taskthe recognizes Task Force Force on theSocial can pioneering be found atefforts of Sir Ronald Cohen's Task Force on Social Investment in the UK, and their process served as a model Investmentforwww.socialfinancetaskforce.ca this report. in the Other UK, significantand their process served as a model for this report. Other significant contributors to the Task Force initiative can be found on thecontributors last page of to this the report. Task Force initiative can be found on the last page of this report. Further information on the Task Force can be found at Further information on the Task Force can be found at www.socialfinancetaskforce.ca www.socialfinancetaskforce.ca The Task Force on Social Finance secretariat and research were kindly supported by the following organizations: The Task Force on Social Finance secretariat and researchThe Task Force on Social Finance secretariatPlus anand research were kindly supported by the following organizations: were kindly supported by the followingAnonymous organizations: Donor Macquarie Group Foundation Plus an Plus an Anonymous Anonymous Donor Donor Macquarie Group Macquarie Group Foundation Foundation * Social Innovation Generation (SiG) is a national partnership comprised of The J.W. McConnell Family Foundation, MaRS Discovery District, PLAN Institute and the University of Waterloo. Its aim is to create a culture of continuous social innova- tion to address Canada’s social and ecological challenges. Canada’s ability to conceive, build and scale social innova- tions will require more capital than available through philanthropy and government. Canada’s emerging social finance marketplace will allow public and philanthropic capital to leverage significantly more private capital to achieve long-term benefits for Canadians. * Social Innovation Generation (SiG) is a national partnership comprised of The J.W. McConnell Family* Social Foundation, Innovation MaRS Generation (SiG) is a national partnership comprised of The J.W. McConnell Family Foundation, MaRS Discovery District, PLAN Institute and the University of Waterloo. Its aim is to create a culture of continuousDiscovery social District, innova- PLAN Institute and the University of Waterloo. Its aim is to create a culture of continuous social innova- tion to address Canada’s social and ecological challenges. Canada’s ability to conceive, build andtion scale to socialaddress innova- Canada’s social and ecological challenges. Canada’s ability to conceive, build and scale social innova- tions will require more capital than available through philanthropy and government. Canada’s emergingtions will social require finance more capital than available through philanthropy and government. Canada’s emerging social finance marketplace will allow public and philanthropic capital to leverage significantly more private capital marketplaceto achieve long-term will allow public and philanthropic capital to leverage significantly more private capital to achieve long-term benefits for Canadians. benefits for Canadians. Dear Reader, here has never been a better time to reconsider the role of capital markets in Tcreating sustainable value for our society. Canadians have long relied on governments and community organizations to meet evolving social needs, while leaving markets, private capital and the business sector to seek and deliver financial returns. However, this binary system is breaking down as profound societal challenges require us to find new ways to fully mobilize our ingenuity and resources in the search for effective, long-term solutions. Mobilizing private capital to generate, not just economic value, but also social and environmental value, represents our best strategy for moving forward. Canada has already started down this road. A growing number of enterprising charities, non-profits, co-operatives and social entrepreneurs are building
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