Financial Planning Association of Indiana September 21, 2018 Cool New Math: Social Good + Financial Returns = Social Impact Investing Presenters: Marilee J. Springer, J.D., Partner, Ice Miller LLP Robert A. MacPherson, CAP, VP for Development, Central Indiana Community Foundation

Defining Social Impact Investment Social impact investing refers to investments made into companies, organizations and funds with the intention to generate a measurable, beneficial social impact alongside a financial return. It represents an opportunity to invest charitable assets in the growth of our economy while producing financial returns and addressing systemic, social issues. In sum, it aligns the goals and aspirations of our communities, our most dynamic businesses and employers and the philanthropic sector.

Defining Social Enterprise Social Enterprise Entities address a basic unmet need or solve a societal problem through a market-driven or commercial approach. A Social Enterprise Entity is a business with primarily social objectives. Any profits that are created are reinvested into the charitable or social mission of that entity (or into the community) rather than maximizing profits for shareholders. 

Defining Corporate Social Responsibility Socially conscious businesses embrace a philosophy reflected in their product creation and marketing, their consumer interactions and the workplace they create for their employees. Their decisions balance a desire for profits with a commitment to social impact. They understand consumer decisions are increasingly driven by and aligned with their beliefs and values.

Social Impact Investment Statistics

Social Impact Investment Benefits For Social Change For Investment Objectives For Intersection of Philanthropy and Investment “Profit with a Purpose” Challenges Defining the desired social benefit Measuring the intended returns Purely financial returns vs. purely social returns vs. blended returns

Examples of Social Impact Investment Structures Investor Side Charitable Investor Mission Related Investments (i.e., public charity investors, donor advised funds) Program Related Investments (i.e., private foundation investors) Alternative Investment UBIT Commercial Investor Private Equity Investor (i.e., individual investor)

Examples of Social Impact Investment Structures Business Side Traditional For Profit B Corp/Social Enterprise Entities Charity (e.g., low rate loan) Local Projects 16 Tech IU Philanthropic Venture Fund

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