7:00 pm June 21 Room 1900 SFU VANCOUVER (515 W Hastings)
admission by donation * no-one turned away for lack of funds * all proceeds go to SFU’s bursary program to support leaders from traditionally excluded communities in the community economic development program * charitable tax receipt for donations over $20
Partners: SFU Community Economic Development | Mennonite Central Committee | the Hospitality Project Mission Possible | The Canadian CED Network | Skyworks Foundation
Join us at the 10th Annual Manitoba CD/CED Gathering:
OCTOBER 19, 2012
*NEW LOCATION* Churchill High School (510 Hay St.)
Don’t miss out on Manitoba’s premier community economic development event, taking place October 19 at Churchill High School in Winnipeg. For ten years, the Gathering has provided a unique opportunity for community members, government officials, students and social entrepreneurs to come together and learn about innovative ways to reduce poverty and build stronger communities in Manitoba.
Here are some reasons to attend the 2012 Gathering:
A barrier-free event that provides a great opportunity for networking and connecting with people from a variety of sectors
Learn about and celebrate the success of CED initiatives across the province
Choose from a wide range of workshop topics and themes
Learn some helpful hints for building capacity and engaging your community
Delicious lunch and snacks will be catered by a variety of social enterprises from across the city!
More info to follow!
Watch our Gathering website page more information on our keynote speaker, online registration, and workshop line-up! In the meantime, contact Sarah Leeson-Klym with questions about the Gathering: or 204-943-0547.
In his new book, CCEDNet founding member Mike Lewis, of the Canadian Centre for Community Renewal, builds on 35 years of leadership in community economic development, the social economy and development finance in Canada and internationally to cast the challenges facing us in a new light.
With so many books being written about peak oil, climate change, and their implications for our people and planet, what’s different about The Resilience Imperative? Its central thesis is that climate change and escalating energy prices compel us to reinvent our economic life on a much more local and regional basis. But how to do it? This is the vexing question. How do we forge a steady-state economy that is socially, ecologically and economically sensible and sustainable? Is it even possible, or just the naive notion of do-gooders?
The Resilience Imperativeresonates with the possible! Using a range of theory and incisive historical and contemporary analysis for a launchpad, it presents case after case of creative, strategic action in the world of today. These strategic pathways demonstrate how people in Asia, Europe and North America are learning to meet basic needs for food, land, housing, energy, and finance more locally and regionally. Their example shows how we too might navigate transition and strengthen resilience where we live. Powerfully, the authors bring these innovations back down to earth by revealing the implications, in dollars and cents, for the cost of living of the average household.
By defining connections more vividly and obstacles more clearly, this book helps readers see just what we can unleash once we put our shoulders to the common weal of innovation – locally, regionally, nationally, and globally. We can take on the status quo, practically and politically. Moreover, co-operatives, trusts, and the social economy are crucial to scaling up these innovations and powering down our economic lives to something sensible and sustainable.
Canada and the European Union are in the process of negotiating a Comprehensive Economic and Trade Agreement (CETA). This agreement would eliminate most tariffs between Canada and the EU and change some non-trade related government policies such as those related to labour, health, farming, public safety, and environmental rules and regulations.
Negotiations began in 2009 and progress has been made in the areas of goods, services, investment, government procurement, and more. The Government of Canada has made the CETA negotiations a priority in its international trade agenda and negotiating parties aim to conclude negotiations in 2012.
The Canadian CED Network promotes government purchasing policies that recognize the added social, economic, and environmental value of locally owned businesses, co-operatives, and so
cial enterprises. In doing so, we encourage governments to use purchasing as a tool for creating stronger and more inclusive local economies, building more sustainable communities, protecting the environment, promoting ethical business practices, and for creating new opportunities for marginalized groups to gain long-term local employment. However, the ability of provincial and municipal governments to continue this practice is now coming under threat.
Ongoing negotiations for the proposed CETA have revealed the EU’s intent to gain unrestricted access to purchasing by provinces, municipalities, school boards, universities, hospitals, and provincial and municipal crown corporations. If achieved, it could significantly reduce or even eliminate provincial and municipal purchasing policies that encourage local development, or set performance requirements obliging foreign suppliers to purchase locally, train local workers, or reinvest a portion of profits into local communities.
Community Benefit Agreements provide a tool governments can use to continue to purchase from local small businesses, co-operatives, and social enterprises without interfering with trade agreements. Community Benefit Agreements allow government purchasing to include a value to social components as well as price, quality, and environment considerations in all Request for Proposals. (Click here to learn more about community benefit agreements).
For more information on Community Benefit Agreements or on CETA and its implications for CED, please contact Kirsten Bernas with CCEDNet’s Policy Council at . You can also visit the Trade Justice Network’s website at www.tradejustice.ca for more information or to get involved by signing their Open Declaration. Alternatively, please contact us if you have any information you would like to share regarding CETA and CED.
Measuring social and economic impacts is vital to the growth of innovative community solutions
Every day, Shaun Loney sees positive change in the lives of his co-workers as a result of their participation at Building Urban Industries for Local Development (BUILD). BUILD is a social enterprise operating out of Winnipeg’s inner-city. Individuals with multiple barriers are hired to complete energy and water efficiency retrofits on private and public low-income housing units. Many participants have had contact with the criminal justice system and do not have a high school diploma or formal work history.
BUILD prepares participants for further education and training or employment through a Community Economic Development approach that integrates economic and social objectives. In addition to hard skills, participants develop soft skills and life skills through access to a driver’s licensing program, financial management courses, parenting courses, tutoring in basic literacy and numeracy, cultural programming, and counselling. Over 90 percent of participants who complete the six-month program go on to further education and training, or employment.
Shaun can tell story after story to demonstrate the social value his organization creates. What he and other practitioners cannot easily do is quantify that value. This is something that funders and policy-makers are increasingly interested in understanding.
Several methods of measuring social value have emerged over the last fifteen years, and they continue to be scrutinized and refined. Social Return on Investment (SROI) is one method often used by social enterprises to demonstrate the value of outcomes that are not captured in traditional financial return models.
Beyond traditional financial return models
SROI analyses translate social outcomes into financial equivalents. But not every social outcome can be assigned a monetary value, so SROI analyses also demonstrate value in qualitative terms. By measuring the value of social benefits relative to the costs of achieving them, SROI analyses can help inform decision-making processes. They can reveal the effectiveness of interventions, which allows practitioners to adjust their practice and funders and policy-makers to allocate resources in a way that optimizes social outcomes.
The SROI methodology was first developed by the Roberts Enterprise Development Fund (REDF) in San Francisco beginning in 1996. REDF’s SROI analyses compared investment in a social enterprise to the value created by that investment. This included enterprise value (i.e. financial returns) and social purpose value (i.e. reduced welfare payments and health expenditures), and a combined “blended value.” REDF’s methodology also qualitatively demonstrated the positive changes that cannot be easily monetized, such as improved housing stability and self-esteem.1
The New Economics Foundation (NEF) in the United Kingdom built upon REDF’s SROI methodology to make it as applicable and usable as possible. NEF’s approach emphasized stakeholder involvement in the identification of social value. It added impact mapping to the analysis, which demonstrates step-by-step how an organization’s actions create change. It also introduced “deadweight analysis” to provide a method to estimate how much of the change would have occurred in the absence of the organization’s actions.2
A formal revision to the SROI methodology was again produced by a consortium led by the international SROI Network. The 2009 Guide to SROI (updated in 2012)3 is based on NEF’s SROI analysis and a methodology established by practitioners in the USA and Europe in the mid-2000s.4 It applies the seven principles of good measurement developed by the SROI Network:
Involve stakeholders
Understand what changes
Value the things that matter
Only include what is material
Do not over-claim
Be transparent
Verify the result
The challenges of measuring SROI
Currently, there is no single accepted methodology for conducting SROI analyses. The international SROI Network encourages the application of the seven principles to build consistency within the social metrics field, but they have yet to be universally accepted. Other challenges related to SROI analyses go beyond the lack of consistency in methodologies used.
First, it can be difficult to capture all impacts. Which impacts get captured can depend on the judgment and imagination of those involved. Furthermore, it can be difficult to agree on how to monetize certain changes, such as increased self-esteem. Second, it can be difficult to make reliable comparisons between organizations that are competing for contracts or funds using SROI results, especially when the organizations don’t use comparable methods and judgments. Third, SROI results may not provide a reliable basis from which decisions to scale up or replicate an intervention can be made, especially when they fail to describe the underlying processes that explain how value is created. Finally, it can be costly to undertake a detailed SROI analysis with fully trained staff that can effectively carry out the methodology.5
Increasing awareness and creating consistency
A number of organizations in Canada are coming together under the umbrella of the SROI Canada Network to address some of these challenges. SROI Canada hopes to build the capacity of organizations to do SROI analyses using a common language and common tools. Members of the network can access an evolving proxy database with consistent estimates of financial value for a variety of social outcomes, which allows them to save on costs associated with researching financial proxies.
SROI Canada also offers training opportunities and is the only organization that can offer accreditation practitioner training in Canada. Accreditation can build consistency in the use of SROI by ensuring practitioners use a consistent methodology based on the seven principles of good measurement.6
The tools and training offered by SROI Canada will help social enterprises like BUILD demonstrate their full value. Already, BUILD has participated in some preliminary SROI calculations that it can build upon. These calculations demonstrated to the provincial government the value generated by increased taxes, avoided welfare payments, and avoided crime-related costs.
These additional revenues allow the government to expect a payback on its initial investment in the social enterprise within two years. Shaun Loney believes that these results should help provide the evidence that is needed to give his enterprise a competitive edge over private sector companies that are doing the same physical work without generating comparable returns to government. He hopes that, along with his stories, these numbers will broaden the case for the provincial government to invest in social enterprises like BUILD as part of a comprehensive strategy to address the employability crisis facing Aboriginal people in Manitoba.
Learn more
BUILD is a member of the Canadian Community Economic Development Network, which brings people and organizations together to share knowledge and build a collective voice in support of community economic development. The network understands that SROI analyses can provide CED organizations with a solid evidence base from which they can demonstrate the value of their work. It has prioritized the development of a list of existing SROI resources to help CED practitioners better understand and apply this emerging field of study.
Case studies featured on this webpage include an economic evaluation of Alberta’s Immigrant Access Fund Micro-Loan program, which assists immigrants in acquiring Canadian accreditation and training. It reveals annual rates of return of 33% or more, with returns upward of 100% for higher earning occupations such as for physicians. A separate study on Quebec’s employment training businesses found that governments recoup two-thirds of expenditures in the first year, and completely recover their investment in just 29 months. Please visit the webpage for more examples.
If you are aware of other resources please send them to Kirsten Bernas at
1. A detailed description of REDF’s methodology and examples of its application to specific social enterprises can be found on its website www.redf.org.
2. In 2008, NEF published a second edition of Measuring Real Value: a DIY Guide to Social Return on Investment which details its four-stage SROI analysis.This publication and case studies applying NEF’s methodology can be found on its website at www.neweconomics.org. NEF also provides consulting that offers a wide range of SROI support services including full evaluations, training, practitioner support and external verification http://www.nef-consulting.co.uk/services/sroi/.
3. Both publications can be found on the SROI Network’s website thesroinetwork.org.
4. This methodology is described in Olsen, Sara & Nicholls, Jeremy et al’s A Framework for Approaches to SROI Analysis. 2005 and in Peter Scholten’s Social Return on Investment: a guide to SROI. 2006.
5. These and other challenges related to conduction SROI analyses are described in Arvidson et al’s The Ambitions and Challenges of SROI. 2010.
6. More information on SROI Canada can be found on their website www.sroi-canada.ca.
Registration for Connections 2012: Community Investment Solutions for a Better Ontario is now open! Click here to register today!
Connections 2012 will seek to explore the systemic shift happening within Ontario’s economy that is felt acutely by the communities we live in. More than ever we need an investment strategy that builds on local skills, assets and people to reduce inequality and strengthen communities. Focusing on community economic development, Connections 2012 will bring together representatives of community organizations, co-operatives, social enterprises, government, and academic institutions to focus on innovative solutions for our communities.
As part of this event we have some exciting workshops lined up for you. You can learn more about the workshops and the agenda for the day by visiting our event webpage: http://www.ccednet-rcdec.ca/en/OntarioCEDEvent2012. There you will also find a draft program (a final version will be posted in the beginning of May) available for download and containing descriptions of each workshop.
Subsidies are available for participants coming from rural areas! For more information visit our event webpage.
Accommodations
As extra incentive to register early, for a limited time you can take advantage of reduced accommodation rates at the Delta Chelsea in downtown Toronto (33 Gerrard Street West) as a participant of Connections 2012. Up until May 9th you can reserve a room at the following prices:
$125.00 for Single or Double occupancy
$145.00 for Triple
$165.00 for Quad
Call the Reservations Department at 1-800-CHELSEA (1-800-243-5732) and identify yourself as being with the Group “Canadian CED Network” before May 9th to take advantage of this offer. Spaces are limited so don’t delay!
Shoulder Events
For those of you coming from further away, to make your travels even more worth it there are a couple of other activities that may just pique your interest.
CCEDNet’s AGM: At 7pm, members of the Canadian CED Network will be meeting at the Learning Enrichment Foundation for the annual general meeting
June 8th
Community Bond Workshop: The Ontario Nonprofit Network will be holding a one-day workshop on communtiy bonds. Stay tuned for more information!
Sponsorship
There is still time to contribute to this event. Your contribution, no matter how great or small ($100 – $20,000), helps to make this a great event. For details on sponsorship opportunities please visit our event page to download the sponsorship options brochure.
By Matthew Thompson and Joy EmmanuelClose to 400 products were generated through the various research projects coming out of the Canadian Social Economy Research Partnerships (CSERP). This body of research is a substantial contribution to understanding the history, the current context, and the future of the social economy in Canada.With Assembling Understandings, the Canadian Social Economy Hub has developed a thematic summary of the CSERP outputs, exploring the following dominant crosscutting themes within the research findings: Mapping, Social Enterprise, Co-operatives, Indigenous Peoples, Organizational Governance & Capacity, Social Finance, and Public Policy.What emerges with Assembling Understandings is a detailed snapshot of the remarkably robust and innovative nature of Canada’s social economy, and demonstrates where key developments can potentially have a significant influence on the continued economic growth and social impact of the sector.
Rupert Downing, EditorOver the five years of the Canadian Social Economy Research Partnerships, public policy emerged as a key theme.This e-book brings together the National Hub’s public policy and knowledge mobilization paper series, three papers examining strategic and practical aspects of public policy development, and new research on the links between the social economy and environmental sustainability.International comparisons present some of the characteristics of jurisdictions where public policy has contributed to a dynamic social economy sector, and papers on governance, financing and procurement focus on some of the issues that are key for the development of the social economy.Canadian Public Policy and the Social Economy is a convenient compilation of the major works on public policy produced by the Canadian Social Economy Research Partnerships.
Peter V. Hall and Ian MacPherson, EditorsEdited by CCEDNet Research Committee Chair Peter Hall and Canadian Social Economy Hub Principal Investigator Ian MacPherson, this book explores lessons for community-university engagement by reflecting on the experiences, achievements and challenges of the Canadian Social Economy Research Partnerships (CSERP).Between 2006 and 2012, the six regional nodes and the Hub conducted research on the social economy in Canada. This research entailed an unprecedented level of pan-Canadian experimentation within collaborative models of engagement, knowledge creation, sectoral (self) definition and policy development. While some parts of the social economy are professionalized and have formalized organizational structures that interact well with the university sector, important parts are emergent, informal and highly localized. Each of the CSERPs had to grapple with longstanding questions about building and sustaining community-university partnerships.In Community-University Research Partnerships each of the nodes and the Hub describe their experiences in developing meaningful approaches to partnership-building and engagement and share insights on the process and challenges of forging (and maintaining) practitioner-university engagement.
Mike Toye (he/him) lives in the traditional territory of the Abenaki and Wabanaki Confederacy in south-central Québec. His involvement with the Canadian Community Economic Development Network started in 2000, and he has been Executive Director since 2008. He has been a consultant on community economic development and the social economy in two worker co-operatives he co-founded, author of numerous articles and reports, co-editor of the book Community Economic Development: Building for Social Change, lecturer, researcher and Policy Analyst for the Library of Parliament.
Manitoba Budget 2012 – A Missed Opportunity for Meaningful Investment in our Communities
Click here to learn how the 2012 Manitoba Budget relates to our member-adopted Policy Resolutions.
On April 17th, community organizations gathered at the Manitoba Legislature to hear the provincial government unveil its 2012 budget. CCEDNet staff and members were on hand to comment on the Province’s plans to support community initiatives that address the root causes of poverty, crime, and community decline.
The communities, organizations and individuals working to address these issues have demonstrated the benefits of innovative and preventative measures. What’s needed is more investment in: affordable housing units and Employment and Income Assistance (EIA) rental allowance rates; subsidized child care spaces; opportunities for education and training; jobs for people with barriers to employment; culturally appropriate, adequate, and accessible supports for those dealing with addictions and mental health challenges; and community-based initiatives that work with people and neighbourhoods in a way that builds capacity and hope, while creating meaningful opportunities for those who need them most. (For more information on these strategies, read The View From Here and Bill C-10: The Truth About Consequences). What we found last Tuesday was half-measures and frozen budgets. Manitoba Budget 2012 does not cut spending in key community initiatives – a choice that makes a muted commitment amidst pressure to reduce the deficit. However, it does little to increase support for these important actions, beyond incremental investments in child care. This year’s Budget outlines 21 indicators of poverty reduction and social inclusion, however they are not accompanied by targets and timelines. Furthermore, the Budget does not commit any new funds to help lift Manitobans out of poverty.
It appears that the relentless chorus calling for tax cuts has weakened the government’s resolve to invest in Manitobans’ well-being. NDP-initiated tax cuts since 1999 will result in $1.2 billion of lost revenue this year alone, which would have entirely offset this year’s projected deficit of $1.12 billion.
When we look at the areas driving government spending, it becomes clear that current investment choices are shortsighted and not cost effective. Manitoba Budget 2012 demonstrates that the Province will continue to spend on the expensive results of poverty, crime and poor health, rather than on the cheaper, more effective solutions addressing their root causes. For example, there is a 2.5% decrease in the Housing and Community Development budget while the Justice budget is going up by 8.1%. Freezing or cutting preventative, community-based initiatives will only balloon the resulting costs – an outcome that serves no one.
We know that $1 invested in food skills training and nutrition awareness results in $10.64 in healthcare savings. We also know that homelessness costs society nearly $100,000 per person meaning that it is cheaper to house people than leave them on the streets. Incarceration costs up to $130,000 per year while preventative programs cost much less. If we seek to contain rising costs of healthcare and crime, reactive solutions to poverty are misguided.
We all need to be more conscious of these realities when considering political and policy positions. The media also has to play its role in providing this context so Manitobans better understand the long-term consequences of short-term thinking related to government policy, investments, and taxation.
In the end, this analysis highlights the need for a deficit reduction approach that is not about spending less, but rather spending smarter. Not just for our collective well-being, but also for more effective government, a more sustainable fiscal future, and healthier, safer and happier communities.
How the Budget stacks up to CCEDNet-Manitoba’s member-adopted Policy Resolutions:
Housing: Importantly, and to their credit in the face of this intense pressure to drastically cut spending, the government’s existing commitment to build 300 new social housing units per year remains, although there is no new investment in housing, leaving the result far short of what is needed. There was no mention of co-operative housing.
Community-led Initiatives: Support for Neighbourhoods Alive! And the Winnipeg Regeneration Strategy has been renewed, but not increased. There was a modest increase in the Co-operative Development budget.
Social Enterprise: The Budget did not include mention of support for social enterprises or procurement policies that would recognize the high investment return for society that social enterprises have on reducing poverty by creating good jobs for people with barriers to employment. However, the Neighbourhoods Alive! Tax Credit for social enterprise development was renewed.
Poverty reduction: The government will not increase EIA rates and will not be extending the EIA training timeline. Although the Budget includes strategies to address poverty reduction and social inclusion, there are no new actions, funding or timelines for achieving results.
For more information, contact Kirsten Bernas, at , (204) 943-0547.
On April 13, 2012 the Canadian Co-operative Association was informed by the Government of Canada about the termination of the Co-op Development Initiatives along with significant cuts to the Rural and Co-operatives Secretariat. This came as a surprise to the Canadian Community Economic Development Network and our member organizations including the Canadian Cooperative Association, the Canadian Worker Co-operative Federation, the Co-operative Housing Federation of Canada, the Manitoba Co-operative Association, and co-operatives throughout the country. Cuts will have a significant impact on the development of new co-operative businesses, jobs, and services for communities throughout Canada.
In a year that the United Nations has declared the “International Year of Cooperatives” — which the federal government endorsed at the United Nations and has been a partner in supporting — the elimination of the only federal government program dedicated to co-op development is not only hard to understand, it is misguided and will result in a negative economic impact much greater than the short-term spending that is “saved.”
With over $330 billion in assets, about 9,000 co-operatives in Canada provide services to 18 million members. They are a significant part of our economy and our communities. At a time when job creation is needed for economic recovery and growth, why cut support to a sector that employs over 150,000 Canadians and continues to grow? In an era when economic decisions are increasingly made outside of the communities most impacted by them, and the accumulation of wealth in few pockets is contributing to a growing income gap in our country, what we precisely need is stronger leadership and investment in a business model that roots ownership locally and distributes wealth equitably. Co-operatives also build democracy through their core principle of giving every member of a co-op an equal vote in the decisions of the business, including member representation on the co-op’s board of directors, providing the opportunity for more than 100,000 Canadians to participate in the governance of co-operative businesses in their communities.
Co-operatives are also businesses oriented to member service rather than maximization of profits. This means that, while being strong businesses, they will operate in circumstances that meet members and communities needs as long as feasible rather than closing its doors as soon as maximum profits are not realized and leaving communities without important jobs, services, and economies. For example, more than 1,000 communities in Canada have a financial co-operative as the only financial institution providing important services to the community.
Co-operatives are also more stable businesses for our communities and economies. A 2008 study in Quebec found that 62 per cent of new co-ops are still operating after five years, compared with 35 per cent for other new businesses. After 10 years, the figures are 44 per cent and 20 per cent respectively. Similar research in BC and Alberta recently found parallel results in their provinces.
But while the co-op sector is a huge part of our economy, co-operatives usually start with a collection of people looking to address a need in their community, or capture an opportunity, in a way that puts their needs and their local economy first. These initiatives are worth investment in the development, start-up, and growth phases because of the significant impact and returns that they generate over time. The Co-op Development Initiative provided precisely this type of strategic investment. Since the program’s inception in 2003, more than 300 new co-ops were created with support from the CDI program, and more than 1,600 groups received advice and assistance, which might yet lead to the creation of more co-ops.
In light of the significant negative impact that this $4 million “saving” will have on the Canadian economy and many communities, we urge the federal government to reverse their decision. Our communities and our economy are worth it.
For more information, contact Kirsten Bernas, at , (204) 943-0547.
Tuesday May 1, 2012 1:00pm Atlantic, 12:00 pm Eastern, 11:00 am Central, 10:00 am Mountain, 9:00 am Pacific
International Committee Webinar Session Register TODAY and join us to learn about how Sustainable Tourism is supporting communities growing their economies while safeguarding the environment in Canada and internationally.
[Register here]
BACKGROUND
Tourism has a major impact on economies, cultures and the environment. It often destroys cultures, communities and natural habitat but it can be a vehicle to build communities while increasing pride in local culture, improving the local economy and helping to protect local habitat. This webinar will share examples of sustainable tourism development here and abroad. We will see how Indigenous communities in Canada help empower local communities by utilizing an Indigenous approach to tourism.
SPEAKERS:
International perspective: Michael Campbell of University of Manitoba will present on his prestigious Skål International award winning project that offers tourists a chance to spy mountain gorillas in their natural habitat in Uganda. Working with Makerere University and the Uganda Wildlife Authority, they’ve established a master’s program in wildlife tourism and recreation management. Uganda now trains its own people to manage an industry that accounts for 50% of the country’s GDP.
Canadian perspective: Clinton Belcher, President and CEO of CES, will share his work with First Nation communities in Canada, particularly Quebec. From over 15 years of experience, CES has developed the Pando Terra™ Model, which creates an organic approach to sustainable tourism development. Stories of this model being used in Eeyou Istchee – the traditional territory of the James Bay Cree in Quebec – will be shared. This model empowers, encourages and supports the community and its members first, knowing that sustainable tourism development will follow.
Moderator: Jessica Braun, CES A question and answer period will follow.
SESSION LOGISTICS:
Date: May 1, 2012
Webinar begins at 12:00 pm Eastern time, 9:00 am Pacific time
Participation is free
Register by April 29 to obtain connection information and additional resources.
This session is in English.
REGISTRATION:
[Register here]
Please share this invitation with anyone you think would be interested.
Some governments around the world are experimenting with new financial instruments, notably ones that are most often in Canada called ‘social impact bonds’ (SiB).
Simply, a ‘social impact bond’ is a financial instrument that raises private capital, and links financial returns to the achievement of a social outcome. In a successful SiB model, these outcomes will create improvements in the system that create cost savings as well as social benefits, and so fund financial returns to the private capital.
While potentially creating new sources of investment for social interventions, Social Impact Bonds also represent new relationships, and shifting responsibilities, between non-profits, governments, and private investors.
Here are some resources for community groups to better understand opportunities, limits and risks offered by Social Impact Bonds
Watch this 3-minute Introductory video on Social Impact Bonds by McKinsey and Company, based on their 2012 report “From Potential to Action,” which assesses the opportunity for social impact bonds in the U.S.
The MaRS Centre for Impact Investing in Toronto published “Pioneering Pay for Success in Canada” which describes the approach. Their site offers a number of documents outlining potential Canadian applications and issues, as well as international experiences. Read more >>
Some CCEDNet members and leading CED thinkers have expressed concerns about the social impact bond model
Margie Mendell and Émilien Gruet have prepared a brief synthesis on the topic, summarizing how SiBs are being promoted, where they are already in place, and what some of the critiques are.
On November 20, 2012, the CBC Radio program The Current examined social impact bonds, discussing them with Human Resources and Skills Development Canada Minister Diane Finley, Toby Eccles, the man responsible for developing the Social Impact Bond in the UK, and David MacDonald, an economist with the Canadian Centre for Policy Alternatives Listen to the program >>
Note: Social impact bonds are not the same thing as community bonds. The Centre for Social Innovation in Toronto offers an excellent explanation of how they used community bonds to raise $2 million for the purchase of a building, and how others can learn from their experience. Read more >>
At the International Forum on the Social and Solidarity Economy in Montréal last October, Québec’s Minister of Municipal Affairs, Regions and Land Occupancy proposed the creation of a provincial-territorial Network of ministers responsible for the social economy, to facilitate information sharing on the implementation of public policies supporting the social economy.
In February, he sent a letter to his provincial and territorial counterparts inviting them to an inaugural meeting of the Network in Québec City.
The partnership of organizations that came together to organize the National Summit on a People-Centred Economy recently sent a letter to all the provincial ministers that received the invitation, encouraging them to accept.
Working directly across provinces to leverage best practices is an encouraging approach to support the development of the social economy in Canada.
Consider writing to your provincial or territorial minister, encouraging them to accept this invitation and reinforcing the significance of the social economy in your province or territory.