The world is on the brink of a revolution in how we solve society’s toughest problems. The force capable of driving this revolution is ‘social impact investing’, which harnesses entrepreneurship, innovation and capital to power social improvement. 

It is already bringing significant advances in areas such as reducing prisoner reoffending, caring for children and the elderly, community regeneration, financial inclusion, and supported housing. It has the potential to generate great benefits in developed as well as developing countries.

Social Impact Investments are those that intentionally target specific social objectives along with a financial return and measure the achievement of both. The social impact investment ecosystem consists of:

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Demand: Impact-seeking purchasers
  • Government procurement of services
  • Government as commissioners of outcomes
  • Foundations as commissioners of outcomes
  • Socially minded consumers of goods and services
  • Socially minded corporate purchasers of goods and services
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Demand: Impact-driven organisations
  • Grant-reliant organisations (e.g. charities)
  • Grant-funded organisations with trading activities
  • Social enterprises/ profit-constrained organisations
  • Profit with purpose businesses
  • Businesses setting significant outcomes objectives
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Forms of finance
  • Secured loans
  • Unsecured loans
  • Charity bonds
  • Social impact bonds
  • Quasi equity
  • Equity
  • Grants
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Supply: Channels of impact capital
  • Social banks
  • Community developmentfinance institutions
  • Foundations as commissioners of outcomes
  • Impact investment fund managers
  • Impact investment intermediaries
  • Crowd-funding platforms
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Supply: Sources of impact capital
  • Government / EU investment
  • Social investment wholesaler
  • Charitable trusts and foundations
  • Local funds
  • Institutional investors & banks
  • Corporates
  • High net worth individuals
  • Mass retail

Members of the Social Impact Investment Taskforce

Authors & Contributors

Members of the Working Groups

Contributors

GSG National Partners

Contributors

Publication Enquiries

realimpact@gsgii.org