Task Force Social Finance Canada

report harnessing power social finance canadaca

Task Force on Social Finance Canada was an initiative launched in 2010 to explore and promote the development of a social finance market in Canada. The central goal was to unlock new sources of capital for social enterprises and non-profit organizations addressing pressing social and environmental challenges. The task force recognized that traditional funding models were often insufficient and that a more innovative approach was needed to drive positive social impact. The task force comprised leaders from diverse sectors, including finance, philanthropy, business, and the non-profit world. This multidisciplinary composition brought a wide range of perspectives and expertise to the table. It was chaired by Stephen Huddart, who later became the CEO of Community Foundations of Canada. The core mandate of the Task Force was to investigate opportunities to grow the social finance market and to make recommendations to the Canadian government on how to foster a more supportive environment for social investment. They conducted extensive research, consultations, and analysis of international best practices to inform their findings. In 2010, the Task Force released its landmark report, “Mobilizing Private Capital for Public Good.” The report outlined a comprehensive vision for a thriving social finance ecosystem in Canada and presented a series of key recommendations across four pillars: awareness, supply, demand, and infrastructure. Regarding awareness, the Task Force emphasized the need to educate investors, social enterprises, and the public about the potential of social finance. This included promoting the concept of impact investing, where investments are made with the intention of generating both financial returns and measurable social or environmental benefits. On the supply side, the report focused on increasing the availability of capital for social enterprises. Recommendations included establishing a social investment wholesale fund, encouraging foundations to allocate a portion of their assets to impact investing, and incentivizing institutional investors to participate in the market. To stimulate demand, the Task Force explored ways to strengthen the capacity of social enterprises to absorb social investment. This included providing access to business development support, technical assistance, and mentorship programs to help them develop robust business models and demonstrate their social impact. In terms of infrastructure, the report underscored the importance of creating a supportive regulatory and policy environment. Recommendations included clarifying the legal framework for social enterprises, promoting the development of social impact bonds, and establishing a national data platform to track the performance of the social finance market. Following the release of the Task Force’s report, its recommendations significantly influenced the development of the social finance landscape in Canada. The federal government subsequently launched initiatives such as the Social Finance Fund, a commitment to invest in intermediary organizations that provide financing and support to social enterprises. While progress has been made, ongoing efforts are still needed to fully realize the Task Force’s vision and unlock the full potential of social finance in Canada. The Task Force’s work continues to inform and inspire social finance practitioners and policymakers across the country, driving the development of innovative solutions to address societal challenges.