A new UNESCAP paper suggests that outcome models may be key to closing the gap in sanitation. The outcome-based financing model and the broader Impact investing paradigm, offer impact investing several advantages, such as leveraging of investment funds for social purpose, injecting the discipline and opportunities of the marketplace and internalizing the social benefits into the system of incentives and contractual arrangements.
In a recent television interview, l'AGEFI journalist, Nicolette de Joncaire, met with Arthur Wood – WSFF convener and founding partner Total Impact Advisors – to discuss the inefficiencies of traditional social capital markets and how the emergence of new legal and investment structures promises to bring greater scale and collaboration to the sector.
"This issue is not about money. It is about taking the tools that we understand in modern capitalism and applying them to this sector." - Arthur Wood
Did you know that less than 2% of US foundations' core funds are aligned with social purpose? In an article that it sure to ruffle some feathers, WSFF convener Arthur Wood argues that the world of philanthropy is dangerously undercapitalized in the face of today's most pressing environmental and social threats. He suggests that new legal and financial structures enable the profit and philanthropic motives to coexist, and indeed, that these new structures hold the key to reallocating a foundation's core funds towards mission related investment. Go to the article
The international conference on social entrepreneurship in the EU, held in Slovenia on April 15-16, 2001, featured a session the role of social finance. In this video taken at the conference, WSFF chair and social finance expert, Arthur Wood, sheds light on new legal and financial models that are changing the way capital is raised and allocated in the social sector.
A working paper published this month by the strategic advisory firm Impact Economy names WSFF, the GAVI Alliance, and Social Impact Bonds among the key players and factors leading the revolution "from classical grantmaking to entrepreneurial internalization of externalities". Authored my Maximilian Martin, who coined the term and concept "impact economy", the report concludes that "Grants will continue to play an important role in philanthropy, but increasingly be deployed to reward impact in public-private-civil society value chains." The paper includes a case study on WSFF's role in creating