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Leading organizations call for federal government to invest in capital and capacity solutions

On June 29, 2020 Canadian community capital and capacity organizations across the country including Impact Bridges Group, with Canadian offices in Ottawa, Toronto and Puslinch, are issuing a public call to action for the federal government to invest in capacity and capital solutions that lead Canada to a path of economic recovery that is inclusive, regenerative, and prosperous for all.

Over the past three months, organizations from across Canada that provide vital support and capital to strengthen social purpose organizations have united to rally around A Community Call to Action to address gaps in the collective response to the economic and social impacts of COVID-19.  Three priority action areas were identified addressing the need for capacity, capital, and systems infrastructure to provide both short-term emergency relief and advance long-term recovery and regeneration. Following a bottom up community development process, the collaborators have developed detailed recommendations regarding the first two priority areas, including capital and capacity solutions. A comprehensive set of recommendations on community capital institution infrastructure will be brought forward in the months ahead.

Two specific actions have been identified for the federal government:

• Investing an additional $150 million over the next two years into ESDC’s Investment Readiness Program (IRP) supporting capacity and skill-building organizations and social purpose  organizations; and

• Accelerating the deployment of the Social Finance Fund to move $400 million over the next two years to capitalize indigenous funds, as well as current and emerging national and place-based funds.

These recommendations recognize the role the federal government has in accelerating nation-to-nation dialogue with First Nations, Métis, and Inuit governments to identify investment priorities for their communities as part of a strong and inclusive recovery.  It is also recognized that these investments must take an intersectional lens to the needs of the most vulnerable Canadians, and that they can help collectively advance gender-based and racialized equity.  Moreover, the second recommendation represents a key component of a unified national proposal of the National Impact Investment Practitioners Table (NIIPT) and CAP Finance to accelerate the deployment of the Social Finance Fund.

The recommendations would seek to:

• help 10,000 social purpose organizations (SPOs) adapt to the crisis;

• maintain and create 10,000 jobs, particularly targeting women, newcomer Canadians, youth, and Black and Indigenous and other people of colour;

• mobilize $800 million in capital for social enterprises and organizations across Canada through existing and new impact investing funds;

• create a resilient and effective community of 100 existing and new intermediary organizations building capacity and providing capital to SPOs across Canada; and

• tackle pressing social, economic and  environmental challenges at a local level including food security and food  sovereignty, health and wellness, climate change, and inequality, in line  with the Sustainable Development Goals (SDGs).

A full letter and backgrounder were prepared and submitted to federal government representatives, and partners are connecting with these representatives in the days and weeks ahead to discuss the recommendations in further detail.  Supporters are also encouraged to write directly to their local MP and/or relevant Ministers in the federal government.  More information is available at ImpactResponse.ca.

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