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Impatient Readiness: The State of Social Finance in Canada 2021
Foreword
The Table of Impact Investment Practitioners – partners that anything but the lightest-touch at- The report tells a critical part of the social econ- and supported, in order to reinforce the emer-
or the Table, as it has been fondly known to its tempts to harmonize the structure and content of omy story, but only part, This leads us to the third gence and development of inclusively innovative
members since earlier iterations as a scrappy the chapters would be an injustice to the distinc- key facet of the report, perhaps the most central to practices. The pandemic, and the inequalities
volunteer-driven community of practice – has a tiveness of the narratives. The practitioners tell the Table’s role as Investment Readiness Program it has exacerbated, compels us to think even
great many people to thank for this inaugural State the stories that they have helped to shape. The as an “ecosystem mobilization partner.” From the more deeply about how we more effectively in-
of Social Finance in Canada report. In an ecosys- narrative is from the viewpoints of social finance outset the project partners set out to ensure that vest to support a just, generative recovery, to
tem where collaboration is an essential ingredient intermediaries – those who raise capital to in- this was not a standalone report, nor even the which this work is a timely contribution. The 2021
of progress, this was a particularly memorable vest in social purpose organizations, enterprises first of a series tracing an evolving perspective – State of Social Finance strives both to serve as
shared effort, involving more than forty contribu- and initiatives for triple bottom-line returns – and however trenchant– but that it would also make a capacity-building tool to guide social finance
tors. From the “project partners” steering group each chapter reflects distinct intersections of in- significant contribution to further research and intermediaries and partners towards the most
determining the scope of the inquiry, to the fluences and experience. Crucially, the thematic fruitful knowledge-exchange among networks. promising practices, and to highlight - among
pan-Canadian research team building the data- chapters speak to legacies of dispossession and The interactive maps that accompany this re- governments, investors and stakeholders com-
base, to the compelling visualization of the data in exclusion experienced by marginalized, racialized, port represent the foundations of an open-source mitted to supporting a more sustainable and
graphic and map form, complementing insights remote and underserved communities – and their platform deliberately built as a versatile resource equitable future - the pivotal role of social finance
generated in community consultations - all cap- historically under-deployed capacities. While fully for all ecosystem partners. Already plotted with in advancing an inclusive recovery.
tured by a writers’ collective encompassing all TIIP acknowledging persisting challenges, each of the National Aboriginal Capital Corporation
members - the report represents the combined these chapters adopts an asset analysis – focus- Associations and Community Futures networks
efforts of values-aligned partners from cover to sing on the enriching and amplification effect of and anticipating the addition of financial coop-
cover. Exemplary cooperative practice would full, equitable inclusion, of social finance as a tool eratives, the dashboards have been designed
usually discourage the naming of names, but a in charting a path to reconciliation, and the para- to allow ecosystem partners to further populate Lauren Dobell,
single exception will be made here, to recognize, digm-shifting power of vigorous diversity among the database, and define the parameters for Executive Director, TIIP
with great appreciation, project coordinator Lena those deploying the tools and capital of social their own purposes.
Courcol’s indispensable herding. finance. Collectively, the reports’ authors speak
to a burgeoning, innovative social finance land- This work was undertaken with support from the
If the collective nature of the endeavour is the first scape, a robust and expanding infrastructure, and Investment Readiness Program, when it was al-
of three facets of the report to highlight, the vibrant impressive existing and untapped potential to de- ready clear that the ways in which intermediaries
diversity of the social finance landscape and the ploy catalytic capital for exponential effect. across the country were working to make more
perspectives this work encompasses is another. resources available on the ground for social pur-
Very early on it was recognized by the project pose organisations must be better understood
2 | Foreword Impatient Readiness: The State of Social Finance in Canada 2021 | 3Contents
Foreword 2
Contents 4
Acknowledgements 6
Introduction 10
Regions 28
Atlantic 30
Quebec 40
Ontario 48
Manitoba & Saskatchewan 56
Alberta 62
British Columbia 68
Pan-Canadian Themes 76
Indigenous 78
Grassroots 86
Inclusion, Diversity, Equity, Access (IDEA) 92
Conclusion 100
Appendix 104
Glossary of Terms 106
Bibliography 114
4 | Contents Impatient Readiness: The State of Social Finance in Canada 2021 | 5Acknowledgements
LEAD AUTHORS
Introduction and Quebec Alberta Inclusion, Diversity,
Methodology Equity, Access (IDEA)
Nancy Neamtan Jane Bisbee
Derek Ballantyne Author, Trente ans d’économie Social Enterprise Fund Narinder Dhami
sociale au Québec : Un
New Market Funds Marigold Capital
mouvement en chantier British Columbia
TIIP SECRETARIAT Lauren Dobell Victor Beausoleil
Marguerite Mendell Garth Davis
TIIP Jillisa Brown
Concordia University Andy Broderick Ryan Oneil Knight
Lauren Dobell Lena Courcol Atlantic Canada New Market Funds
Ontario Social Economy through Social
Executive Director IRP Coordinator
Inclusion (SETSI)
Seth Asimakos Indigenous
Kelly Gauthier
Saint John Community Loan Fund
Rally Assets Conclusion
Paul Lacerte
Dianne Kelderman Jeffrey Cyr
RESEARCH LEADS Derek Ballantyne Derek Ballantyne
Nova Scotia Co-operative Raven Indigenous Capital
New Market Funds New Market Funds
Council Partners
Karolina Kosciolek Kelly Gauthier Lauren Dobell
Manitoba &
Rally Assets Rally Assets Grassroots TIIP`
Saskatchewan
Sarah Leeson-Klym
Sarah Leeson-Klym
Canadian CED Network
Canadian CED Network
(CCEDNet)
RESEARCH TEAM (CCEDNet)
Atlantic Canada Manitoba & Saskatchewan North Inclusion, Diversity,
Hilary Angrove Khayla Almonte-Davila Taylor Woudwyk Equity, Access (IDEA)
Aditi Sriram
Quebec Alberta Indigenous Alexandra Zybinova CONTRIBUTING AUTHORS
Audrey Popa Brooks Hanewich Alexander Oldroyd
Alexander Draper Pan-Canadian
Ontario Grassroots Dylan Cohen Béatrice Alain Heather Conradi Charles Holt Darcy Penner
Rebecca Waterhouse British Columbia Niall Harney Arshaan Mehra Chantier de l’économie Vancity Credit Union InvestEco Capital Canadian CED Network
Emielia Dahl-Sam sociale (CCEDNet)
Hazel Corcoran Travis Inlow
Annette Aquin Canadian Co-operative Local Investing YYC Steve Petterson
Hamilton Community Worker Federation National Social Value Fund
Brenda Irwin
Foundation
MAPPING LEADS Carinna D’Abramo Rosales Relentless Venture Fund Maat Re
Lina Bowden SEED Winnipeg Inc. Social Economy through
Sarah Juma
Jason Kelly Christopher Bone VERGE Capital Social Inclusion (SETSI)
Jamila Flake Social Economy through
University of Victoria University of Victoria
Eoin Callan Social Economy through Social Inclusion (SETSI) Tracey Robertson
Map Shop Map Shop
Upper Canada Equity Fund Social Inclusion (SETSI) Ontario Trillium Foundation
David Moffat
James Chan Philippe Garant The Inlandsis Fund Brian Smith
VERGE Capital Réseau d’investissement Rhiza Capital
MAPPING TEAM social du Québec (RISQ) Stephen Nairne
Jacques Charest Raven Indigenous Capital Joel Solomon
Chantier de l’économie Jonathan Hera Partners Renewal Funds
Henry Hart Kenneth Josephson Crystal Tremblay
sociale Marigold Capital
University of Victoria University of Victoria University of Victoria Trish Nixon Adam Spence
Map Shop Map Shop Map Shop CoPower SVX
6 | Acknowledgements Impatient Readiness: The State of Social Finance in Canada 2021 | 7Sarah Stuewe Michael Toye Mike Winterfield Bill Young
Windmill Microlending Canadian CED Network Active Impact Investments Social Capital Partners
(CCEDNet)
Kevin Taylor Eden Yesh
SVX Vijay Venkatesan BC Community Impact
London Community Investment Coalition
Foundation (BC CIIC)
REPORT DESIGN & PRODUCTION
Copy Editor Design & Layout Data Visualization Translators
Rohan Quinby Aaron Legaspi Isaac Eckert Adela Nistor
Dossier Creative Nicolas Soumis
FUNDERS
The research, development, and publication of this report was made possible from
funding by the Government of Canada’s Investment Readiness Program
8 | Acknowledgements Impatient Readiness: The State of Social Finance in Canada 2021 | 9Introduction
certain investments), or funds that direct capi- and for the public good”4. These values shaped
tal away from certain activities (e.g., zero-carbon the pre-confederation economies of Turtle Island
funds) in favour of others. With the recent surge and can be seen in the tenets of the re-emerg-
in interest in environmental, social and gover- ing social economy – sustainability, reciprocity,
nance (ESG) investment there is often confusion and communal well-being. The elements of this
between simple ESG screens and genuine im- framework can also be seen in the early system of
pact investment, which is a more intentional and credit and savings that may have first developed
outcome-driven investment approach. Social fi- in Ethiopia, and continue to be the basis of helping
This report is a testament to the depth and environmental returns being delivered. There is nance capital is directly linked to the imperative people access funds in a collective setting5.
breadth of impact investing in Canada over the a complex network of organizations that work to for sustainable development, and the achieve-
past decade. Social impact fund assets under attract new capital to impact purposes, build the ment of the 2030 United Nations Sustainable
management have increased substantially in re- capacity of intermediaries, and support the social Development Goals (SDGs). [Social finance] reflects the
cent years, nearing an estimated $1 billion . The 1
enterprises that contribute to the social economy. Indigenous centric values that we
proliferation of funds has fostered a vibrant diver- This report focuses on social impact investment The Impatient Readiness: The State of Social
hold collectively as Canadians:
sity of impact and increased investment choices. funds, also known as social finance intermediar- Finance in Canada 2021 report is not intended to
that ultimately, we are all
A rich landscape of investment opportunities is ies3. These funds aggregate capital from multiple be a comprehensive inventory of investment op-
portunities, and social impact funds do not exist relatives and therefore have a
generating positive triple bottom line impact in sources, providing a pooled investment approach
communities across Canada. that reduces the risks associated with direct, sin- in isolation from the targets of their investment shared responsibility for the well-
gle-purpose investments. Social impact funds are – social enterprises and initiatives – or the val- being of our collective society and
As “a tool that seeks to mobilize private capital the primary social finance tool that links capital ue-driven investors. The report is an illustration for the public good.
for the public good,” social finance creates “op- and measurable impact. of the development of the social impact invest-
portunities for investors to finance projects that ment sector, providing regional and thematic
benefit society and for community organizations context and insights, and speaks to the successes Post-confederation, values of communal well-be-
to access new sources of funds”2. This does not achieved and challenges being faced by funds ing shaped the creation of co-operatives to
Social impact funds are
exclude government tax advantages and invest- and impact investment practitioners in the devel- support community access to capital and eco-
the primary social finance
ments being used to augment private capital or opment of social finance across Canada. nomic development. For example, as described
tool that links capital and in the chapter on Atlantic Canada “in the 1920s, a
to mitigate risk that supports private investments.
measurable impact Social finance in Canada is not new. As noted in group of priests and educators… came together
Integral to social finance objectives is that so-
cial and environmental outcomes are measured the Indigenous chapter that follows “(s)ocial fi- to address the social and economic issues fac-
along with financial returns. nance in Canada can and should be thought ing the peoples of Atlantic Canada”6. These efforts
Social impact fund investments are made in
of as an Indigenous concept.” It reflects “the resulted in the Antigonish Movement—a multi-
enterprises and projects that seek to create mea-
The social finance ecosystem includes a range Indigenous-centric values that we hold collec- pronged approach, including micro-finance, to
surable positive social and environmental change.
of actors – from investors through to the enter- tively as Canadians: that ultimately, we are all support small, resource-based communities
This is distinct from funds or investments that seek
prises and initiatives that generate the social and relatives and therefore have a shared responsi- across the Maritimes. Similarly, co-operatives
to “do no harm” (usually through screening out
bility for the well-being of our collective society have been an integral part of the social impact
1 Survey conducted by TIIP in November 2020
2 Employment and Social Development Canada (ESDC), “About Social Innovation and Social Finance,” Social Innovation and Social Finance 4 Paul Lacerte, “Indigenous Chapter, Impatient Readiness: The State of Social Finance in Canada 2021” (Table of Impact Investment Practitioners (TIIP),
(Government of Canada, April 17, 2019), https://www.canada.ca/en/employment-social-development/programs/social-innovation-social-finance. May 2021).
html. 5 Narinder Dhami, Victor Beausoleil, and Jillisa Brown, “Inclusion, Diversity, Equity, Access (IDEA) Chapter, Impatient Readiness: The State of Social
3 Employment and Social Development Canada (ESDC), “Discussion Guide for the Investment and Readiness Stream of the Social Finance Fund,” Finance in Canada 2021” (Table of Impact Investment Practitioners (TIIP), May 2021).
Social Innovation and Social Finance (Government of Canada, April 17, 2019), https://www.canada.ca/en/employment-social-development/programs/ 6 Seth Asimakos and Dianne Kelderman, “Atlantic Canada Chapter, Impatient Readiness: The State of Social Finance in Canada 2021” (Table of
social-innovation-social-finance/consultation-investment-readiness-stream/discussion-guide.html. Impact Investment Practitioners (TIIP), May 2021).
10 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 11sector in Quebec and the Prairies. The co-oper- social economy of their communities. The growth measurable positive impacts addressing social sustainable local and global development. There
ative movement in Canada today is large and of grassroots intermediaries is not as evident in and environmental challenges, to support eco- are a myriad of opportunities to put capital to
diverse, framed by the underlying values of col- the Prairies, Northern Ontario, and parts of Atlantic nomic development, achieve social inclusion, work for social change and innovation, to which
lective community benefit and welfare. New Canada , where it remains a challenge to raise
7
create a more resilient civil society infrastruc- social finance fund managers have responded
co-operative models are emerging in Alberta and deploy social impact capital. ture and scale enterprises that are providing in diverse ways. Common to all funds is the need
(the Opportunity Development Co-operatives, for innovative and enduring solutions advancing to access and deploy capital in ways that are still
example) and British Columbia (BC). These co-op- The growth of impact investment is substantial
eratives, enabled by new regulatory frameworks and encouraging, for advocates of a more just, in-
in those provinces, are supporting innovative clusive, sustainable circular economy. It is also not
without challenges and these are well-illustrated Fig. 1 — Canada’s social finance intermediaries by investment range, stage, and legal entity type
ventures, meeting the needs of smaller rural com-
munities, or simply aggregating capital for larger in the chapters that follow. Chief among the chal-
impact investment in social enterprise. lenges is broadening access to investment capital
and attracting capital from sources across the in-
The increased interest in social impact investment vestor spectrum. The Inclusion, Diversity, Equity and
by investors and governments can be linked to the Inclusion (IDEA) chapter that follows clearly sets
development of a robust ecosystem in Quebec, out patterns of exclusion in social finance, and the
at the centre of which is the Chantier de l’écon- need to address inequities in access to capital,
omie sociale. The Quebec ecosystem illustrates using a multilayered lens approach in supporting
how the capacity of financial institutions and civil persons and communities that are under-repre-
society organizations can be leveraged to cre- sented in the social finance ecosystem.
ate a mature investment environment. In Ontario,
the efforts of institutions such as the MaRS Centre The experience of Quebec shows that enabling
for Impact Investing, and the work of pioneering government policy and intentional financial sup-
community and private foundations have sup- port translate into increased private investment
ported the development of intermediaries and and greater access to capital, and therefore so-
encouraged the growth of impact investment. cial impact. The public recognition of the social
These critical sources of capital have fostered the economy as a fundamental component of sus-
expansion of social impact investment opportu- tainable development, the creation of institutional
nities and have created an understanding of how instruments such as the Quebec Solidarity Funds,
public policy instruments can play a role in the ex- and the critical role of intermediaries such as the
pansion of the social economy. Réseau d’investissement social du Québec (RISQ),
combine to establish a sound and sustainable
Social finance intermediaries are as diverse as the basis for social finance and the social economy. This plot identifies Canada’s social finance intermediaries based on the size of investments they
funds that they manage. These include a grow- place. Here, intermediaries are broken down into five ranges of investment size, with the length
ing number of collective or community-owned Sector Diversity and Complexity of each bar representing the number of intermediaries that place investments in that range.
grassroots organizations, focused on local im- The pie chart at the end of each bar demonstrates the intermediaries’ targeted investment
The investment focus, size, and scope of so-
pact. In BC, the BC Community Impact Investment stages of investees (i.e., seed, early, mid, late).
cial impact of funds varies greatly. This is not
Coalition benefits from provincial and national
unexpected – social finance seeks to create Note: The proportion of investee legal entity types within an investment range is represen-
securities regulation exemptions to invest in the
tative and scaled based on percentage. Of the intermediaries surveyed, 55% have data on
investment range.
7 See http://www.novascotia.coop/programs/community-economic-development-investment-funds/ for example.
12 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 13relatively new to investors and is for the most part smaller proportion in real assets (see Figure 3). High-net-worth (HNW) individuals may be at- investments. There is evidence that larger funds
still on the margins of financial and economic Public equity and public debt form the smallest tracted to the outcomes of impact funds and (i.e., over $10 million AUM) are having success in
policies in this country. proportion of reported investments. The illiquidity are generally less constrained than foundation attracting institutional investors.
of most social impact investments stems from the investors. To date, with some exceptions, there
More than over 130 social finance intermediaries time required to create the change in social out- has been limited engagement of financial in- Quebec, as noted above, has a unique history and
have been identified through regional surveys. comes being financed, or the development and stitutions in social impact investment. This may approach to social finance. Following the economic
This includes a relatively small number of funds maturation of the enterprises being supported. again be due in part to issues of scale, in this case crisis in the early 1980s, which exacerbated exist-
managing more than $5 million in assets under While capital lock-up periods and fund redemp- the relative cost and complexity of making small ing social and economic inequalities, a diverse set
management (the largest manage over $100 tion policies vary widely, it is common for social of actors came together to create an intentional
million) to a larger group of smaller funds (less impact funds to require patience in the realiza-
than $250,000 in AUM). The illustrations in the re- tion of the full returns on investment, even where Fig. 2 — Relationships between Canada’s social finance intermediaries and investees
port draw especially on the experience of three there are in-course yields available to investors.
dozen funds belonging to the Quebec-based CAP These characteristics likely have an influence on
Finance and the pan-Canadian Table of Impact the source of investment capital available to im-
Investment Practitioners, which jointly strive to pact investment funds.
support all funds actively engaged in impact in-
vestment across Canada. In the past twenty years, impact investment in
most of Canada has been led by foundations
Impact investment funds invest at all stages of and mission-driven individuals, though Quebec
enterprise development, with larger funds tending is a notable exception to this pattern. Private and
to be focused on mid to late stages, and smaller community foundations are attracted by the
funds tending to invest in seed and early stages ability to generate impacts through investment,
(see Figure 1). These differences may in part be rather than relying solely on granting, which in
the product of investor risk appetites, investment most cases is restricted by the income generated
return expectations, and depth of social mission from investment and the desire to ensure the
of the funds in question. preservation of this capital base as an endow-
ment to generate grants in the future. There are
Among the funds surveyed there is a relative
notable leaders, such as the Hamilton and Ottawa
parity in the number of for-profit and non-profit
Community Foundations, McConnell Foundation,
intermediaries, with a larger proportion of AUM
and Makeway (formerly Tides Canada) that have
being directed to for-profit enterprises. This may
headed the call to use philanthropic capital to
be a function of the largest funds being more ex-
accelerate social finance. There also remains
clusively focused on for-profit enterprises (see This Sankey diagram illustrates the links between Canada’s social finance intermediaries and
considerable foundation capital that remains
Figure 2), whereas smaller funds may tend to sup- their investees (organizations they place investments into). Intermediaries and investees are
on the sidelines.
port non-profit ventures. It is interesting to note coloured according to their legal entity type, and the width of the grey link represents the num-
that co-operative enterprises (both for-profit and Foundations, key in the development of the social ber of intermediaries of one legal entity type (for-profit organizations, for example) that target
non-profit) make up a significant proportion of impact space in much of Canada, can be con- investees of one legal entity type (charities, for example).
the investment targets for funds. strained by the size of funds (the risk of holding
a disproportionate investment in a small fund) Note: While social finance intermediaries exist as a single legal entity type, their fund mandate
Approximately 75% of investments made by so- may include investees of multiple legal entity types. Of the intermediaries surveyed, 93% have
and by internal policies that seek to achieve
cial impact funds surveyed are equally divided data on legal entity types.
mission-related impact (limited investment op-
between private equity and private debt, with a
portunity alignment with specific missions).
14 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 15Fig. 3 — Breakdown of Canada’s social finance intermediaries by asset class Different social impact funds target a broad range and environmental technologies is an important
of outcomes (see Figure 4). Of the funds surveyed, component of the social finance ecosystem, while
the majority operate in three sectors – employ- conservation finance is an exciting emerging field.
ment, community development, and business
literacy. Relatively few funds target the environ- Not all funds are thematic – for example, com-
ment (biodiversity, forestry, and oceans), arts munity loan funds that support non-profit and/or
and media, and transportation. While the abso- for-profit enterprises are largely sector-agnostic
lute number of funds under review were relatively and seek impacts across a range of economic
small, the net assets under management were sectors. Increasingly social impact funds are mea-
high. Investment in clean tech, energy retrofits suring outcomes in the framework of the United
Fig. 4 — Breakdown of Canada’s social finance intermediaries by sector
This doughnut chart illustrates the breakdown of Canada’s social finance intermediaries based
on the asset class(es) that their investments fall under. The size of the slice of the doughnut
represents the number of intermediaries whose investments fall under that asset class.
Note: A single intermediary may appear across multiple asset classes if they offer multiple in-
vestment products. Of the intermediaries surveyed, 80% have data on asset class.
social finance ecosystem. A key institution has dedicated entirely to co-operative and non-profit
been the Quebec Solidarity Fund, supported by enterprises. With initial financing of $10 million,
the labour movement, which together with local of which 50% came from large financial institu-
development funds, community-based funds, tions and private corporations, the creation of the
and state funds support the delivery of solidarity Réseau d’investissement social du Québec (RISQ)
finance and development capital. represented a major step in the evolution of social
finance in Quebec despite its modest capitalisa-
The chapter on Quebec in this report describes tion. Quebec now has the most developed system
how the social finance ecosystem received a criti- of social finance in Canada, recognized in all sec-
cal boost in 1996 with the convening by the Premier tors and by all orders of government as integral to In this chart, the length of each bar represents the number of intermediaries that place invest-
of Quebec of a summit on employment and the the economic development of the province. More ments in that sector.
economy. Following the suggestions of a working recently, the ecosystem has encompassed funds
group bringing together the diverse actors in the Note: A single intermediary may appear across multiple sectors if they offer investment prod-
focused on Indigenous communities and the-
Quebec economy and civil society organizations, ucts in more than one sector. Of the intermediaries surveyed, 90% have sector data.
matic funds developed though private initiatives.
and investment fund unlike any existing entity,
16 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 17Nations Sustainable Development Goals (SDGs). or a limited number of the SDG outcomes. The Economic and social empowerment of vulnera- provides indicators of what actions can assist
All of the seventeen SDGs were primary focuses majority of thematic funds focus on one or more ble or marginalized communities is a significant in the continued growth of the sector, and the
of one or more of the impact funds under review. of three of these – decent work and economic theme for many funds – directly and indirectly. Of broader application of social finance to address
growth (SDG 8), reduced inequalities (SDG 10), and the funds included in the survey that have a focus an increasing range of challenges experienced by
Those funds that are not thematic in design gen- sustainable cities and communities (SDG 11). on inclusion, the plurality focus on Indigenous communities. It is the product of a collective effort
erally focus on multiple SDG outcomes (see Figure communities, with the focus on youth and women – a team of researchers who compiled the data
5). Thematic funds are more likely to focus on one the next largest targets (see Figure 6). It should be used to illustrate the current context, community
noted that some funds that may not specifically mappers who assisted in identifying the pan-Ca-
focus on inclusion tend to target these commu- nadian tapestry of social finance intermediaries,
Fig. 5 — Breakdown of Canada’s social finance intermediaries by SDG alignment
nities by virtue of their mission. For example, funds and the members of TIIP who contributed time
seeking to support the delivery of affordable and knowledge of their local and regional context
housing will indirectly impact households made to provide a more complete picture of social fi-
vulnerable in the market and are likely to include a nance in late 2020. As noted in the Foreword, social
higher proportion of racialized and persons mar- finance has many origins, many pathways, many
ginalized in their communities. parents, and emerges from many traditions. The
report captures this as best as is possible at this
Impatient Readiness: The State of Social Finance particular point in time.
in Canada 2021 illustrates the richness of the cur-
rent impact investment offerings. The report also
This bar chart shows the breakdown of Canada’s social finance intermediaries based on
the alignment of investees (organizations intermediaries invest in) with the United Nations
Sustainable Development Goals (SGDs). The length of each bar represents the number of inter-
mediaries with investees aligned with that SDG.
Note: A single intermediary may appear across multiple SDGs if they invest in organizations
aligned with multiple SDGs. Of the intermediaries surveyed, 90% have SDG data.
18 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 19Fig. 6 — Breakdown of Canada’s social finance intermediaries by target population Fig. 7 — Breakdown of Canada’s social finance intermediaries by geographic scope
This circle packing chart highlights the social finance intermediaries in Canada that specifically This doughnut chart shows the breakdown of Canada’s social finance intermediaries according
target particular Canadian communities through their mission, fund mandate, and their invest- to their mandated scope. The size of the slice of the doughnut represents the number of inter-
ment products. The size of the circle represents the number of intermediaries that target each mediaries that operate within each scope.
specific demographic community.
Note: Intermediaries may only have one assigned scope. All of the intermediaries surveyed have
Note: Of the intermediaries surveyed, only 35% target a demographic community with their in- data on mandated scope.
vestment products. As such, this plot only represents that subset of intermediaries and does not
necessarily illustrate the main recipients of impact in Canada’s social finance ecosystem.
20 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 21Methodology: notes and considerations
Origins this study, the criteria has been further refined to
focus on those entities that invest exclusively for
As referenced elsewhere in the report, and in
impact – that is, in mission-driven social purpose
the bibliography, a number of reports produced
organizations (SPOs), enterprises or initiatives – in
over the past ten years have sought to capture
communities across Canada.
a moment in, a perspective of, or recommenda-
tions for strengthening Canada’s dynamic social Consistent with the criteria employed by the Table
innovation and social finance landscape. These of Impact Investment Practitioners, this report
have included three compendiums of compara- defines social finance and impact investing inter-
tive studies of impact investment funds belonging mediaries as those:
to TIIP’s predecessor tables, beginning with Eight
Tracks / Huit Pistes, published in 20141. Building
• with an existing capital base, whose primary
on this foundation, the Impatient Readiness: The
purpose is impact investing;
State of Social Finance in Canada 2021 report is
the most comprehensive examination to date of • actively deploying capital to generate mea-
the social finance marketplace, its gaps and op- surable social and/or environmental returns,
portunities, challenges and successes, primarily as well as patient, concessionary or mar-
from the perspective of those who raise, place, ket-based financial returns;
and manage capital to generate positive social
• investing primarily in non-publicly traded
and environmental, as well as financial, returns.
Canadian enterprises; and
Defining a Social Finance Intermediary • producing publicly accessible reports, in-
cluding robust impact measures
Echoing the definitions used by the Social
Innovation and Social Finance Strategy Co-
Scope of Inquiry
creation Steering Group, ESDC defines social
finance intermediaries as the actors connecting While the lens was thereby narrowed for the
“the supply side of the social finance market (such purpose of identifying the protagonists, the
as social finance investors) with the demand pan-Canadian canvas was sweeping, and at
side (such as social purpose organizations)2. It the same time insufficient for the purpose of un-
offers as familiar examples “community loan derstanding the evolution of the social finance
funds, credit unions, Indigenous financial institu- landscape from the perspective of its intermediar-
tions, and chartered banks”3. For the purpose of ies. In recognition that the many distinctive paths
1 “Eight Tracks: Impact Investing in Canadian Communities” (National Impact Investment Practitioners Table, May 2014), https://newmarketfunds.ca/
wp-content/uploads/2018/04/Eight-Tracks.pdf.
2 Employment and Social Development Canada (ESDC), “Discussion Guide for the Investment and Readiness Stream of the Social Finance Fund,”
Social Innovation and Social Finance (Government of Canada, April 17, 2019), https://www.canada.ca/en/employment-social-development/programs/
social-innovation-social-finance/consultation-investment-readiness-stream/discussion-guide.html.
3 Ibid.
22 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 23each traced reflected intersecting influences Data Collection and the number of unique intermediaries oper-
of history, geography, demography, socio-eco- ating in each subdivision was mapped nationally.
A team of twelve researchers were tasked with
nomic circumstances, civic and community More importantly and enduringly, the Map Shop
identifying and gathering publicly-available data
priorities, three cross-cutting themes – exam- team was tasked, from the outset, with designing
to situate social finance intermediaries within
ining persistent challenges in mobilizing social a platform that would be accessible and useful
geographic regions and across the three pan-Ca-
finance tools and capital, notable advances, to ecosystem partners – including those identified
nadian themes. Under the supervision of the
and key contemporary issues from the perspec- as potential social finance intermediaries within
research leads at Rally Assets, the team compiled
tive of Indigenous-led social finance, historically the broad definition provided above - Aboriginal
the database which was then used to generate
marginalized and racialized communities and Financial Institutions, credit unions, CDFIs, and
the maps and charts featured in this report.
grassroots organizations – overlay chapters or- chartered banks – as all increasingly strive to
ganized by region. For the purposes of this report, identify triple bottom line outcomes, develop
social finance in the Indigenous context includes Database Development metrics, and intentionally engage in community
investments in the Indigenous economy to im- impact investment.
As research lead, Rally Assets was responsible
prove well-being in First Nations, Inuit, and Métis
for the development of a database structure
communities and Indigenous peoples across Report Authorship & Community
that would capture relevant information on each
Turtle Island (North America). Social finance in the Consultations
social finance intermediary. The final structure
context of the focus on Inclusion, Diversity, Equity,
of the database included over a hundred at-
Effectively the entire membership of the Table
and Access includes investments in marginal-
tributes per intermediary, covering areas such
of Impact Investment Practitioners was involved
ized and underserved communities. This theme
as location, geographic scope, asset class, in-
in the drafting of the report, as both formative in
considered communities of people experiencing
vestment stage, sector, target populations, and
shaping the current landscape, and players in the
barriers due to elements of their identities includ-
alignment with the United Nations Sustainable
recent narrative. It was an approach, as described
ing, but not limited to sexuality, race, nationality,
Development Goals (SDGs).
in the Foreword, which recognized that identify-
gender identity, ability, and age. Social finance in
ing enduring and watershed developments in
the grassroots context includes social finance in-
Data Visualization - Charts an evolving landscape relies more on hands-on
termediaries that align with three core principles:
involvement than a detached Archimedean per-
community-based, democratic, and local. The compiled database was used to generate
spective, and that the vibrant diversity of influences
the various charts included in this report using R,
is best captured by practitioners on the ground.
Project Partners an open-sourced language and environment for
Contributors are recognized, with infinite respect
statistical computing and data visualization.
As described in the Foreword, this inaugural report and appreciation, in the acknowledgements.
involved a broad team as advisors, researchers,
Data Visualization – Maps
authors, analysts, community informants and
graphic designers, with a view to building re- The experienced community mappers of the
sources that informed a specific study in the short University of Victoria’s Map Shop were engaged to
term, and were also widely accessible, on an develop a cartographic visualization of the data
open-source basis, to the whole ecosystem for a collected by the research team, and to resolve
wide range of further research. an assortment of inevitable quandaries in how
best to capture both a moment and a dynamic
process. Intermediary headquarter locations
were mapped based on their physical location.
Additionally, each intermediary’s regional scope
was expanded to census subdivision boundaries
24 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 25Interactive Map Overview
Legend Layers
Understand the symbols on Explore a series of map layers
the map by referring to the by adding up to 7 different
dynamic legend. types of social finance entities,
including credit unions,
foundations, AFIs, etc.
View the geographic scopes
of the featured intermediaries
by toggling the ‘Intermediary
Regional Scope Count’ layer.
Left Panel
Pins
Select a variety of dropdown
options to filter the social Each pin represents the
finance entities featured on headquarters of a single social
the map. finance intermediary. Click on
the pin to display information
Filters include: about the entity, including the
intermediary’s name, contact
• Province (of the
information, etc.
social finance
entities’ headquarters)
• Thematic lens
• Sector
Try it Out!
• SDG alignment
• Legal entity type of the Scan or click the QR code
targeted investees below to visit the interactive
• Investment range map online
• Investment stage
Bottom Panel
A dynamic bar chart that illustrates the provincial breakdown of
the social finance intermediaries featured on the map.
26 | Introduction Impatient Readiness: The State of Social Finance in Canada 2021 | 27Regions Atlantic
Quebec
Ontario
Manitoba &
Saskatchewan
Alberta
British Columbia
28 | Regional Areas Impatient Readiness: The State of Social Finance in Canada 2021 | 29Atlantic
Background
It is difficult to generalize about the state of so- “masters of their own destiny” — a phrase that
cial finance in Atlantic Canada. Some parts of became the title of a seminal book about the
the region have a long history of co-operative Antigonish Movement1. The People’s School was
endeavour that remains vital today, while other established at Saint Francis Xavier University in
parts remain relatively underdeveloped when it Antigonish, Nova Scotia, with the goal of helping
comes to alternative and community-based fi- build the movement, and was instrumental in the
nance. Nonetheless, it is important to remember development of the credit union system. It is no
that social finance and social impact funds are exaggeration to say that the success of these
not new concepts in Atlantic Canada. credit unions, along with other pioneering ideas of
the Antigonish Movement, has influenced provin-
cial finance systems as well as other asset-based
...it is important to remember that community development initiatives in Canada
social finance and social impact and around the world.
funds are not new concepts in
Over the past century, the legacy of the Antigonish
Atlantic Canada.
Movement has installed core values of collective
identity and community in Atlantic Canadians.
It was in the 1920s that a group of priests and This has led to the development and adoption
educators, led by Father James John Tompkins of alternative structures across the economy, in-
and Father Moses Coady, came together to ad- cluding co-operatives, social enterprises, as well
dress social and economic issues facing Atlantic as non-profit organizations.
Canadians. Together they founded the Antigonish
Today, one in three Maritimers are members of
Movement, an approach that combined adult
co-operatives, and the $5.2 billion sector em-
education, co-operatives, microfinance, and rural
ploys over 11,000 people and provides affordable
community development to support small, re-
housing for over 6,000 people across the region.
source-based communities across the Maritimes.
Additionally, there are more than 12,000 non-profit
The movement focused on empowerment organizations across Atlantic Canada, many of
through education, skills development, and ca- which are engaged in social enterprise devel-
pacity building for the common good, with the opment as a way of meeting community needs,
goal of letting people in Atlantic Canada become opportunities, and aspirations.
1 Moses Coady, Masters of Their Own Destiny (New York: Harper, 1939).
30 | Atlantic Impatient Readiness: The State of Social Finance in Canada 2021 | 31Successes A few examples illustrate the range of recent • Finally, Co-Pharm is a pharmaceutical
social enterprise investments in Nova Scotia care enterprise that provides access
undertaken by NSCC: to prescription medication for those
Nova Scotia NSCC also launched Nova Scotia’s first commu-
who have no or limited access to im-
nity impact fund, focusing on a wide variety of • Affirmative House is a 45-unit equi-
Founded in 1976, New Dawn Enterprises Limited is portant medicine.
community investment priorities. The fund used ty-based housing facility that provides
the oldest Community Development Corporation
a full spectrum of social finance tools, including affordable housing to seniors and per-
(CDC) in Canada and is a founding member of the
term debt, subordinated and/or unsecured debt, sons with disabilities. Government Financing in Nova Scotia
Canadian Community Economic Development
lines of credit, mortgages, loan guarantees, eq-
Network (CCEDNet). As a private, volunteer-di- • The Bus Stop Theatre Co-operative is a Community Economic Development Investment
uity and equity-like investments, and even royalty
rected business, New Dawn seeks to establish performance venue in Halifax. The the- Funds (CEDIFs) were first created in Nova Scotia
agreements. All of these tools were put into use to
and operate ventures that meet the needs of atre has been in operation since 2003 in 1999 and have since been replicated across
support areas such as sustainable agriculture, af-
local communities. New Dawn subsidiaries — New and hosts over 100 different groups provinces in the region. As a simple tax credit in-
fordable housing, clean technology, and financial
Dawn Innovation Fund, New Dawn Community and shows annually. A modest invest- centive, the program offers individual investors a
services for underserved populations.
Investment, and New Dawn Holdings — have ment allowed the Theatre to purchase 35% provincial tax credit in Nova Scotia, and up
participated in the provincial government’s the building they have been renting for to 50% in New Brunswick. There are approximately
The Nova Scotia Co-operative Council and its
Community Economic-Development Investment more than a decade. 115 enterprises seeded by CEDIFs in Nova Scotia
members recently hosted a “A Conversation with
Fund (CEDIF) program since 2004. Over the last alone, which have collectively raised over $104
[newly elected] Premier Iain Rankin”. During the
• Sustainable, local food has emerged as million between 1999 and 20192. CEDIFs invest in
decade, New Dawn’s CEDIFs have raised $11 million event, the Premier stated “All program and funding
a critical target for investment, and Cape for-profit enterprises, and generally fund a single
for direct investment in Cape Breton alone. New decisions going forward will have a commu-
Breton Food Hub Co-operative provides project, such as a windmill farm or a company’s
Dawn Holdings provides investors with the oppor- nity and social impact lens.” He further explained
the link between local food producers new product line. The program is a creative initia-
tunity to support local, innovative, growth-oriented that programs must deliver impacts beyond the
and consumers at all levels. They have tive that retains invested capital in the province
companies, while earning competitive dividends. traditional finance lens. This bodes well for the
created a more sustainable food sys- with RRSP eligibility. CEDIFs face several challenges
New Dawn employs over 175 people from the co-operative and social enterprise sector, who
tem, increased the number of producers such as a complex set-up process, inability to in-
Cape Breton community and serves 600 mem- have historically had a triple bottom line – peo-
and their profitability, while improving vest in real estate, and difficulty in valuation when
bers of the community every day. ple, planet, and profit. NSCC believes the Premier
access to high-quality local food across investors withdraw their investments.
will be an ally for the work they are doing and the
The Nova Scotia Co-operative Council (NSCC) is the region. NSCC’ modest investment
leadership they provide in communities.
an important champion of social finance initiatives enabled the co-operative to leverage The Black Business Initiative (BBI) was created
in Nova Scotia and has influenced the establish- $850,000 in additional financing to pur- in 1996 with financing provided by both the pro-
ment of social impact funds in other provinces chase a building. vincial government and federal governments to
NSCC manages a $160 million provide financial support for black-owned busi-
across Canada. For over 70 years, NSCC has rep-
• Meanwhile, the NSCC helped to fund the
resented more than 300 co-operative businesses
social and small business nesses. In New Brunswick, a similar initiative exists
Coastal Community Radio Co-operative,
and credit unions in Nova Scotia. NSCC supports financing program, financing over in a network of enterprise organizations at the
a community owned radio station that
groups and individuals to launch businesses that 3,000 social enterprises and small municipal level that manage government funds
provides regionally and culturally specific
not only help individual entrepreneurs help them- businesses, and creating 16,000 radio coverage to Cape Breton commu-
dedicated to investing in small business and
selves and their communities, but also contribute jobs in the past two decades. entrepreneurship.
nities, businesses and artists.
to economic growth.
NSCC manages a $160 million social and small
business financing program, financing over 3,000
2 Co-operative Enterprise Council of New Brunswick, “The Economic Impact of the Nova Scotia Community Economic Development Investment
social enterprises and small businesses, and cre-
Fund (CEDIF),” March 2021, https://static1.squarespace.com/static/5c8fa9d9b9144925103db2df/t/605a3a9b228ccb6e5681eaf9/1616526000414/
ating 16,000 jobs in the past two decades. In 2013, Report+on+CEDIF+Economic+Impact+March+2021.pdf.
32 | Atlantic Impatient Readiness: The State of Social Finance in Canada 2021 | 33The Centre for Entrepreneurship Development Saint John Community Loan Fund’s finan- enterprise, micro enterprise, and enterpris- Accelerating capacity for social enterprise devel-
(CEED) is a government-funded agency based cial products are flexible and built around ing non-profits. opment has been on the agenda of the Economic
in Halifax that provides loans up to $15,000 for the needs of an enterprise or project. They and Social Inclusion Corporation (ESIC). This is
youth-owned businesses. CEED also manages the can include simple loans, bridge loans with Finally, the fund invested the equity to a cross departmental government organiza-
Federal Self-Employment Benefit Program, which a deferred and defined payout timed on fu- leverage the construction of three semi-de- tion focused on poverty reduction and supports
enables individuals to draw employment insur- ture revenue, or royalty agreements paid on tached affordable home ownership units, in a network of Social Inclusion Networks through-
ance when starting their business. a per-unit sale, to a maximum return. Other addition to assisting in the acquisition and out the province.
products offered are equity stakes with val- maintenance of affordable housing by a
uation timing, or agreements to purchase local non-profit developer. Among other capacity-building initiatives, the
New Brunswick
future revenue. The range of initiatives Pond Deshpande Centre (PDC) in Fredericton
The Saint John Community Loan Fund is the sponsored by this suite of creative impact runs an entrepreneurship accelerator that grad-
first and only fully independent community loan investments is exciting, and is transforming uates up to twenty social entrepreneurs each
Today that pool has grown to
fund in Atlantic Canada. It has grown from a the lives of many people. For example, the year, while the Cooperative Enterprise Council of
$800,000, from which the Saint
single purpose microfinance organization to fund concluded a royalty agreement with New Brunswick is supporting capacity building for
one that delivers training and social finance, in
John Community Loan Fund
the Farmers’ Truck, which is building pat- co-operatives and for youth social entrepreneurs.
addition to developing and managing social pur- has made more than 275 loans,
ent-pending food truck bodies to distribute
pose real estate. food to food deserts. Meanwhile, a bridge and invested in more than 170 Finally, Saint John’s Community Foundation is an
loan was extended to Estey Art Initiative to start-ups, 5 buildings, and 6 Investment Readiness Program (IRP) delivery or-
The fund’s social finance work started in 1999 with ganization and manages the disbursement of IRP
help transition from a private company to a social enterprises.
microfinance, offering loans as small as $250 monies throughout the province. To date, some
charity helping school children participate in
from a tiny pool of capital. Today, that pool has twenty social enterprises have received grants to
arts programs.
grown to $800,000, from which the Saint John Community Economic Development develop their business cases, or research prod-
Community Loan Fund has made more than 275 Corporations and other actors ucts and service growth.
Other innovative projects include a share
loans, and invested in more than 170 start-ups, 5
agreement with Sensory Friendly Solutions, a
buildings, and 6 social enterprises. The fund is now Similar to the CEDIFs in Nova Scotia, Community
company creating a marketplace for com- Prince Edward Island
working on an aggressive goal to reach a fund of Economic Development Corporations (CEDCs)
panies meeting the demand for Sensory
$10 million within the next three years and extend provide a 50% tax credit to guide investing toward Prince Edward Island’s social finance ecosystem
Friendly shopping. In the heart of downtown
its reach throughout New Brunswick. The fund op- social enterprises. First announced in April 2018, is perhaps the least developed of the Maritime
St. John, the fund initiated a $40,000 purchase
erates in three portfolios: Micro Works, or individual this structure has yet to develop into the force provinces. So far, social finance on the island owes
of future revenue to keep a 150-year-old
loans for self-employment; Launch Social, a port- they have become in Nova Scotia, and so far, only a great deal to the activity of the provincial gov-
company in the Old City Market. Besides
folio of loans designed to secure equity for social one CEDC has been established. Critically, they do ernment, with supports for community economic
saving part of the city’s cultural heritage,
enterprises and entrepreneurs; and finally Build not allow for investing in affordable housing, the development and social enterprise that include
Slocum and Ferris will help clients of the SJ
NB, which finances social purpose real estate. creation of blind pools, or the use of debt. a Community Development Equity Tax Credit Act,
Learning Exchange build essential work-
introduced in 2011. This program is similar to Nova
place skills and host a product incubator
Outside of the efforts of the Saint John Community Scotia’s CEDIF model and provides a 35% personal
for products produced by the Loan Fund’s
Loan Fund, New Brunswick’s social finance ecosys- income tax credit up to a maximum of $7,000.
Enterprising Women graduates. tem is beginning to grow, with new partners taking Despite the opportunity to invest in a range of busi-
advantage of the need for community-based de- nesses approved by the Community Economic
Meanwhile, when it comes to social pur-
velopment and finance alternatives. Development Business program, the uptake since
pose real estate, the Saint John Community
the program’s inception has not been robust.
Loan Fund has invested $100,000 to lever-
age the building of the $2.7 million Social
Enterprise Hub, a collocation space for social
34 | Atlantic Impatient Readiness: The State of Social Finance in Canada 2021 | 35You can also read
