Creativity + community need = social enterprise

Edmonton Community Foundation

When Big Brothers Big Sisters Edmonton needed capital to purchase a property for its 2009 Dream Home Lottery fundraiser, the organization turned to Edmonton’s Social Enterprise Fund. So did CASA, a community-based mental-health services agency that wanted to purchase a school property so it could build equity capital for the future expansion of its services.

The Social Enterprise Fund (SEF) is a collaborative project of the Edmonton Community Foundation, the City of Edmonton and the United Way of Alberta Capital Region. It was launched in 2008 following an eight-year incubation period and provides Edmonton-based projects with either loans or ‘Path to Loan’ grants.

Social enterprise is the use of a business model to harness the power and innovation of the market to help charities and non-profit organizations achieve their missions.

SEF’s goal is to support the long-term sustainability of non-profits in the city. Its mandate is to help such organizations develop their social enterprises – such as affordable housing projects – through a combination of loans and business development services.

Current SEF initiatives allow local agencies to achieve financial returns while pursuing their social goals. Whatever the project, Bob Ward, Executive Director of the SEF says “blended values are the key. There must be a strong business case balanced with demonstrated social benefit.”

The launch of SEF has been successful because of its unique model, which is based on innovation and collaboration. SEF’s primary services include term loans that are shaped, as much as possible, to fit the needs of the business or housing project.

"We are excited about SEF because it is another way – beyond granting – that we can use our endowment to to assist innovative charities to do more for our community.  Such PRIs (Program Related Investments) let us "recycle" the capital over and over again as each loan is paid back," says Martin Garber-Conrad, CEO of Edmonton Community Foundation.

In the near term, SEF plans to evolve its funding philosophy to include being an “engaged lender”, facilitating the sharing of business talent and expertise with organizations receiving loans.