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* Tom’s Story Hi! I’m Tom. @tomjd / @StartSomeGood
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* How do we create social impact?
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* Social Impact Potential Profit Potential Traditional Non-Profit Traditional Business
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* Social Impact Potential Profit Potential Traditional Non-Profit Traditional Business Social Enterprise – for profit and purpose
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* What is a social enterprise?
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* Trend #2 Donor interest evolving in a more direct relationship with projects (Kiva) or individuals (micro-lending / finance) Trend #2 Donor interest evolving in a more direct relationship with projects (crowdfunding) or individuals (micro-finance, Kiva.org) rather than organisations. The Purpose Economy Trend #1 Consumers increasingly incorporating ethical considerations into their consumption. Trend #3 Donors are expecting increased transparency, lower admin costs and greater impact over time and the NGO market is struggling to adapt. Trend #4 Non-profits are becoming more entrepreneurial and entrepreneurs are increasingly looking to combine purpose with profit Trend #5 Businesses are looking to be aligned with social impact / good projects (CSR, Cause Marketing, Blended Value, etc) Trend #6 Market Trends New types of legal structures and certifications like B Corps
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How do we fund social impact? 12
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* Image by Michael Dawes
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* The spectrum of social and financial investment objectives Investment Grant Invest in Instrument $ Returns Bonds, Equities, Deposits ‘Impact First’ ASX200 Equities, Bank / Corporate Bonds, Term Deposits etc Venture Philanthropy Philanthropic donations General InvestmentsImpact Investing‘Financial First’ Examples Yes, market return. 100% driven by maximisation of financial gain Conventional Equity & Bond Instruments Bonds, Equities, Deposits “Do no harm” (Social Responsible Investment principles) and/or Environmental, Social and Governance (ESG) metric/evaluation based investment Yes, market return Project ‘GoodStart’ Social Impact Bonds USPP by Places for People (UK) Ltd Bonds, Equities, Hybrids Investments in companies whose primary goal/ is delivering social and environmental good, whilst also delivering competitive market returns Financial return subject to meeting predetermined performance targets Investment in Social Enterprises, B-Corps Program-Related Investments (PRI’s) Social Impact Funds Bonds & Equities, Deposits Funding for specific social venture and transactions with return potential Priority on Social Return on Investment (SROI) with ancillary financial return Seed Capital Social Enterprises or Social Businesses No Donations are given as seed capital with the expectation of operational sustainability through mentoring by investors Donation, Grants Donation to charities for general day to day use or a specific project No Donation to a charity Pure profit Pure social “Impact Investments are made with the intention to generate measurable social and environmental impact alongside financial return”
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* We need to bridge the gap between innovation and funding in the social sector
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* What Crowdfunding isn’t 3: About crowds at all
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29 “Not only did our StartSomeGood campaign provide us with seed funding for the development of our first product, Speech4Good, but it also united us with an entire cast of like- minded supporters. This resulting community, I would argue, is equally valuable to the future success of our social venture.” -Jack McDermott, Founder
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