Posts Tagged ‘Impact investing’

Introducing Solutions Finance: A New Vision for Our Work

SF for newsletter

Erica Blog Author_ENBy Stephen Huddart and Erica Barbosa VargasStephen-Huddart-author

In the coming weeks, the Foundation is rolling out several new resources on Solutions Finance: a series of white papers and related case studies, illustrating some of what we’ve learned over the last decade from our successes—and failures—in deploying capital for systems change. The first white paper is available today. We hope these resources will be useful to a growing community interested in financial innovation for positive social and environmental impact.

Until recently, we did not talk about Solutions Finance. The new term requires a bit of unpacking.

Social Finance refers to financial instruments that generate social and environmental impact alongside financial returns. It is a term widely recognized in the field and the umbrella term we have been using to describe the Foundation’s market-building and impact investing activities. However, as our experience and practice expand, we see that the promise of this work goes beyond investments with blended returns.

Successful systems innovation requires adequate resourcing, and calls for different forms of capital allocation across the multiple stages of design and implementation. To make this happen in the context of our work, we’re advocating for — and adopting as our own practice — an integrated approach to deploying financial capital and adapting financial models to catalyze, sustain and scale systems transformation. In other words, Solutions Finance. This approach includes, but is more than, continuing to grow an investment portfolio with the expectation of a financial return as well as a positive social or environmental impact.

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Reflections on Social Finance and Impact Investing

PhilipauthorSocial-FinanceblogThe exposure I am receiving during my internship at the J.W. McConnell Family Foundation, to the engaging and exciting field of Social Finance, has left me with a different world view – revealing the significant impact investment decisions made throughout a lifetime can really have. One of the quotes that has stuck with me from the 2014 Social Finance Forum that was held in Toronto at the MaRS Centre for Impact Investing, is a question that Joel Solomon from Renewal Funds asked: “What is your money doing right now?” What I take away from this quote is the importance of being aware of the impact corporations and organizations have on society, and how this will shape the future. (more…)