On February 28th, Imagine Canada hosted an enlightening webinar aimed at unraveling the complexities of social finance. This exclusive session for members beckoned a closer look at how social finance can be leveraged to amplify the impact of nonprofit organizations across the nation.
Insights and highlights from the discussion
Embracing innovation and creativity
The Executive Director of Furniture Bank shared his perspective on the growth of social finance, emphasizing the need for innovation and creativity in the nonprofit sector to harness this powerful tool. Below is their case study on how Social Finance and social enterprise powers their work to scale impact.
- Kathy spoke for many in the sector by highlighting the conservative nature of nonprofits when considering financial risk, touching on the challenges of encouraging these organizations to step beyond traditional funding methods.
- The discussion featured insights from many speakers delving into the cultural and perceptual barriers that often deter nonprofits from embracing social finance, despite the availability of grants and loans.
- The conversation included a strong argument for a shift in mindset among nonprofits, highlighting the necessity of seeing repayable capital not as a burden but as an opportunity for growth and sustainability.
- Many voices revisited the importance of such programs as the Investment Readiness Program (IRP), suggesting they are crucial in equipping organizations with the knowledge and skills needed to become more financially adept.
- Acknowledging the Past, Building the Future: The webinar didn’t shy away from discussing the intersection of social finance and reconciliation, stressing the importance of acknowledging historical injustices as part of a responsible finance strategy.
- The diversity of social purpose organizations utilizing social finance was a focus, with Lena sharing Imagine Canada’s research results, highlighting the wide array of organizations benefiting from this approach.
- While the potential for social and environmental impact through social finance was a key topic, speakers did not overlook the significant barriers such as high transaction costs and the current lack of suitable social finance products.
The webinar concluded on a hopeful note, with all speakers resonating a clear message: social finance, with its challenges, holds the key to transformative social and environmental impact. As Canada’s nonprofit sector continues to explore and adopt social finance, its potential to reshape the landscape of social good remains vast and promising.
Furniture Bank: Case study of transformation through social finance
Imagine a future where social impact organizations are as financially empowered and innovative as the most dynamic startups. This is not just a vision at Furniture Bank; it’s a reality we’re crafting every day. As the Executive Director of Furniture Bank, I’ve witnessed firsthand the transformative power of social finance, and its cousin social enterprise and I’m eager to share how this approach has reshaped our operations and amplified our impact.
From charity to change-maker: Furniture Bank began as a traditional charity, reliant on the ebb and flow of donations and grants. Yet, we’ve evolved beyond this model, tapping into social enterprise to pave a path of financial autonomy and stability with social finance. This shift has not just been about funding—it’s been a renaissance of our organization’s very ethos.
Empowerment through investment: Social finance has been a game-changer, providing us with the tools for empowerment, growth, and sustainability. By engaging with repayable investments, we’ve generated a cycle of growth that reinvests in our mission and community.
Overcoming misconceptions: There’s a pervasive misunderstanding that nonprofits should survive on generosity alone, but we’ve broken through these misconceptions. By doing so, we’ve unlocked our potential and have created a more robust, sustainable model that benefits everyone involved—from the families we help to the broader community.
Education as a catalyst: The narrative of Furniture Bank’s journey from financial instability to covering 80% of our operating costs through social enterprise projects for residential, corporate and governments is a case study to the possibility and effectiveness of social finance as a tool for change.
The broader impact: Our case study is one of many case studies for what’s possible when social finance is embraced. It’s about creating a world where the social sector is reimagined, and organizations are not just surviving but thriving, setting the stage for a future where social good and financial viability walk hand in hand.
Our views about Social Finance Fund announcement in 2023 can be found here.
Furniture Bank & Social Finance Fund: A Match Made For Impact | Furniture Bank
Read all the case studies below of amazing social finance powered organizations like…
- TRINITY CENTRES FOUNDATION
- THE RAW CARROT
- THE FARMERS’ TRUCK
- SOLSHARE ENERGY
- RAVEN INDIGENOUS IMPACT FOUNDATION
- PLAN INTERNATIONAL CANADA
- PILLAR NONPROFIT NETWORK
- KINGSTON ECONOMIC DEVELOPMENT CORPORATION
- INNOVATE CALGARY
- IDE CANADA
- HORTI-CITÉ
- HIKE NOVA SCOTIA
- DUNIN-DESHPANDE QUEEN’S INNOVATION CENTRE
- BC RENT BANK
- 10C
- KALAWIKK
- ABRAHAMIC FINANCE
- WESTERN ARCTIC YOUTH COLLECTIVE
- BYJ TORONTO
- THE UNITED CHURCH OF CANADA
