Wednesday, June 2, 2010

Ideas for a Social Capital Market

A credit union could create a series of funds where investors could place capital.

An investment committee would oversee the deployment of these funds according to established criteria:
  • Business case for the entity to judge repayment risk
  • Entity's expressed ends. What sort of social mission does the organization have. Do they fit in with the investor's wishes?
  • Organization's social business plan - How do they intend to fulfill their mission. What is the risk of not achieving their aims
To receive capital from the fund, an organization would have to commit to reporting social returns on investment.

Organization A has a mission to provide housing for low-income residents. They received $20,000 from the fund. How many people did they house using that investment?

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