Social Finance for Social Good.
Social finance harnesses the power of private capital to achieve social and environmental outcomes while obtaining an economic return, creating mutually beneficial opportunities for organizations seeking capital and for investors seeking to benefit society. Social finance is a broad term that encapsulates a variety of financial tools, used to achieve these social, environmental, and financial returns, including impact investing, community bonds, social impact bonds, development impact bonds, success notes, pay-for-performance vehicles, and our own Community-Driven Outcomes Contracts.
Impact investing differs from traditional investment in both intention and measurement. Investors are purposeful about allocating capital to initiatives they believe will generate positive social or environmental returns in addition to financial returns. Investees are also seeking to create positive social or environmental outcomes with their work. Impact measurement ensures that these good intentions translate into tangible social or environmental benefits.