1. Global Philanthropy + Development Trends: Opportunities for Social + Financial Innovation Tim Draimin Executive Director, Social Innovation Generation (SiG) Chair, Causeway British Columbia Council for International Co-operation (BCCIC) AGM Vancouver, November 28, 2008

5. Courtesy Michael Hall @ Imagine Canada Growing Donations But Declining Donors: 1984 to 2005 Donors as a % of Taxfilers Average Donation ($) Source: CRA compiled by Imagine Canada

6. “Population aging is a worldwide phenomenon that will affect Canada and all G-7 countries”

7. Global Trends Changing global philanthropy and financial architecture Rise of remittances Relative decline of ODA’s importance Technology’s impact –disintermediation Rise of social entrepreneurship, social enterprise, social finance, and expanding hybrid cross-sectoral (nonprofit for profit) universe

8. New Strategic Philanthropists: “Philanthrocapitalists” Primarily self-made entrepreneurs More sophisticated & engaged Strong outcomes focus Bring time, treasure, talent and an entrepreneurial lens See selves as a “partner” Seeking leverage: gifts plus loans, quasi- equity, leveraging social change strategies

11. Social enterprise is … A business with primarily social (and/or environmental) objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners...

12. Social finance is … finance with a social or environmental mission Or, Social finance is a sustainable approach to managing money that delivers social, environmental dividends and economic return through social enterprises operating in the non-profit or public benefit universe.

13. Social Finance Exists Across A Broad Continuum … HIGH INVOLVEMENT LOW INVOLVEMENT CHARITABLE COMMERCIAL Venture philanthropy Traditional grant making Venture capital Bank lending Adapted from Margaret Bolton, 2003

14. Social finance ’ s most visible example is MICROFINANCE …

15. Social finance for public benefit The flow of financial capital to human need uses: o Affordable Housing o Social Enterprise o Support for working families o Health & Home Care o Community Development o Social Economy o Clean Technology o Microfinance o Fair Trade o Green Building o Education o Bottom of the Pyramid (source: market sector listing adapted from www.xigi.net)www.xigi.net Sources Intermediaries Mechanisms Recipients Uses

16. Courtesy CAUSEWAY Collaborative approaches and blended returns Growing social and environmental pressures + government and market failure = the conditions for social innovation Expanding Earned Income Social Finance New Charitable Donations Gvrnt Gs & Cs Earned Income Existing Projected Income

17. Social Finance Supports Businesses in the Public Benefit Universe Low Profit Limited Liability Companies (L3C)

19. Future Directions Growing role of major donors Cross border giving will further open up, challenging monopoly of traditional players Growth of southern philanthropic structures, like Trust Africa, community foundations, etc Global trends towards cross-sectoral strategies, social entrepreneurship, social enterprise, hybrid social business structures (moving beyond tax status “silos” Deepening globalization of philanthropy…

20. Philanthropic Brokering Roles for International NGOs Using: –Capital, financial innovation, practical know-how, strategic partnerships, emergent social innovation Among –Philanthrocapitalists with shared interests –Philanthrocapitalists and key actors in sector or doing Across –Geographies –Sectors (voluntary, business, government) –Financial pathways

21. Causeway New national collaboration accelerating a social finance market place for financing social innovation serving public benefit SiG@MaRS

22. Thanks to Arthur Wood (Ashoka), Michael Hall (Imagine Canada), Michael Lewkowitz (Causeway) For more information about CAUSEWAY: www.causeway.socialfinance.ca www.causeway.socialfinance.ca For more information on the charity sector visit: www.imaginecanada.cawww.imaginecanada.ca For more information of Social Innovation Generation visit: www.sigeneration.cawww.sigeneration.ca