New Canadian Report on Mobilizing Private Capital
MaRS’ Centre for Impact Investing has just published “Mobilizing Private Capital for Public Good: Priorities for Canada,” a report by Canada’s National Advisory Board to the G8’s Social Impact Investment Taskforce.
The report notes that “Impact investing in Canada is on the rise, but it will require leadership from governments, foundations, pension funds, entrepreneurs, non-profit organizations (NPOs) and others to reach its full potential.”
Key recommendations include the following:
- Enable impact investment and social entrepreneurship in the charitable and non-profit sector, in particular by updating the Income Tax Act and related guidance, which have not kept pace with these trends.
- Establish an impact investing matching program, paired with appropriate incentives such as credit enhancements, guarantees and tax advantages, which have been used to good effect to attract investment to other markets in support of public policy priorities.
- Establish an outcomes payment fund, specifying maximum prices that the government will pay for certain outcomes, allowing the market to respond with innovative solutions. Social service providers, in turn, can gain access to impact investment capital based on the government’s commitment to pay when outcomes are achieved.