The document discusses various social finance mechanisms including crowdfunding, microloans, community bonds, social impact bonds, social enterprises, and Community Economic Development Investment Funds (CEDIFs). Crowdfunding involves raising money through small donations from a large crowd online, microloans provide small loans to entrepreneurs without access to traditional financing, community bonds allow non-profits to raise funds with a blended financial and social return, and social impact bonds leverage private funding for prevention programs that reduce government expenditures. CEDIFs allow non-profits to raise capital through share offerings providing investors a tax credit.

2. Agenda
-Introduction
-Crowdfunding
-Community Bonds
-Microloans
-Social Impact Bonds
-Social Enterprise
-CEDIFs

3. Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

4. Social Enterprise
-Any organization that earns revenue by selling
a product or service and generates a positive
social impact
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

5. Crowdfunding
-Raise money for specific projects
-Perks / rewards are given for donations -
bigger donations get bigger rewards
-Tiny donations are made by large crowds
-These are donations, not investments
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

6. Crowdfunding
http://www.indiegogo.com/projects/handmade-products-hand-built-
business-kid-icarus-needs-help-to-take-flight

7. Microloans
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

8. Microloans
-Small loans to entrepreneurs who don’t have
access to traditional loans
-Require a strong business plan, and often
come with additional coaching, mentorship
-Creates meaningful employment by supporting
the next generation of entrepreneurs
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

9. Social Enterprise Support

10. Community Economic Development
Investment Funds (CEDIFs)
Raise capital by
issuing shares
Used for startup or
expansion
Build community support
35% tax credit
Locked-in for 5 years
Strengthen local economy

11. -Allows organizations to raise money by using
shares to non-accredited investors
-Investors get a 35% tax credit and strengthen
the local economy with their RRSP
-These investments can be very risky, and
investors won’t be able to sell if it turns south
Community Economic Development
Investment Funds (CEDIFs)
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

12. Community Economic Development
Investment Funds (CEDIFs)

13. Community Bonds
$10,000 per bond
4% return for 5 years
Raised $2 million
Provides space for
social enterprises
Protection against
global ‘systemic’ risks

14. Community Bonds
-Allows non-profits to raise money for expansion
-Investors get a ‘blended return’ - a financial
return plus a social return on investment
-Backing it with an asset (real estate) reduces
risk, and lowers the expected return
http://communitybonds.ca/

15. Social Impact Bonds
SIBs are a way to leverage private money to
invest in preventative programs that will lower
government expenditures in the long-term
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

16. Social Impact Bonds
Investors
Intermediary
Non Profit Government
1. Make Investment
2. Fund Prevention Program
3. Outcomes that
Reduce Expenditures
4. Pay for Programs that
Meet Targets
5. Repay Investment +
Return
$
$
$
$
$
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

17. Social Impact Bonds
http://www.rockefellerfoundation.org/uploads/files/655fab01-83b9-49eb-
b856-a1f61bc9e6ca-small.pdf

18. Social Impact Bonds
-Agree on social outcome metrics
-Define the scope
-Quantify saving to government
-Independent verification of results
Timothy Nash @timenash nash@sustainableeconomist.com June 10, 2013

19. THANK YOU
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