Project A3-2007 The Non-Profit Sector Capital Market in B.C. and Alberta

The purpose of this study is to complete a current state analysis of non-profit sector capital market development and opportunities in B.C. and Alberta. Social economy organizations require different types of capital at various stages of development to move from start-up to sustainability. The resources of the non-profit sector form a distinct capital market and there is an opportunity to use these resources in innovative ways to support the growth and transformation of the social economy sector. The social economy has grown significantly over the last few years as a result of decreased government funding and an emphasis on diversification of revenue streams. We have witnessed an increase in the number of social economy organizations including social enterprises, non-profit corporations and innovative hybrid organizations. On the capital provision side, there is a significant transfer of wealth anticipated as aging parents transfer wealth and other assets to family members and charities. As well, there are an increasing number of donors and investors interested in ‘venture philanthropy’ and in seeking a social return on their investment. Combined, these forces represent significant potential for innovation and opportunity in the non-profit capital market. There is an opportunity for social economy organizations, foundations and socially oriented private investors to pool their assets and to experiment with new capital tools and instruments to support further strengthening and growth in the social economy sector. Financing that includes a range of financing tools to meet the needs of social economy organizations at various points of development is a core requirement of the social economy sector. This is critical to the successful and sustainable development of the social economy sector in B.C. and Alberta and across Canada. It also responds to the interests of foundations and investors to align their investment and social goals more effectively.This research project will explore the non-profit sector capital market in B.C. and Alberta with a focus on the role that this market can play in developing, supporting and strengthening social economy organizations