Impact Policy Tracker Policy

Social Innovation and Social Finance Strategy



Launched in 2018, Canada’s Social Innovation and Social Finance (SI/SF) Strategy aims to build a more inclusive and sustainable economy by supporting social purpose organisations (SPOs) in Canada. Developed through a co-creation process, the strategy consists of three main components: The Investment Readiness programme (IRP), which allocated US$74 million to help SPOs; The Social Finance Fund (SFF), a US$559 million initiative to expand Canada’s social finance market through intermediaries; and the Social Innovation Advisory Council (SIAC), which advises the government on the strategy’s evolution.

Highlights

  • Combining Capacity Building and Access to Capital for SPOs: Canada’s Social Innovation and Social Finance Strategy supports social purpose organisations (SPOs) through two complementary components. The Investment Readiness Programme (IRP) focuses on capacity building, helping SPOs improve their ability to access social finance through support in networking, research, and social procurement. The Social Finance Fund (SFF), managed by three fund managers, provides repayable capital to social finance intermediaries (SFIs), which act as the wholesaler for Canada’s social finance ecosystem. These SFIs then invest in SPOs, enabling them to access affordable capital for generating social and environmental impact.

  • Empowering Indigenous Communities Through Social Finance: The SI/SF Strategy places Indigenous communities at the centre of its design and implementation. It supports Indigenous-led and Indigenous-serving organisations through targeted funding under the Investment Readiness programme (IRP), promotes culturally grounded approaches and leadership, and enables Indigenous financial institutions to act as intermediaries in the Social Finance Fund to channel capital directly to Indigenous social purpose organisations.

Government’s Role:
Market Facilitator


Country:
Canada

Policy Type:
National Impact Strategies

Year: 2018

Responsible Institution:
Employment and Social Development Canada (ESDC)

Additional information:
Recommendations of the Social Innovation and Social Finance Strategy Co-Creation Steering Group

National Impact Strategies

What are National Impact Strategies?

National Impact Strategies serve as comprehensive roadmaps to advance impact economies, identifying government priorities and actions tailored to a country's specific circumstances, existing policies, and legal framework. These strategies typically: a) Set clear, measurable targets and objectives; b) Align the activities of multiple sectors and levels of government;

c) Define specific responsibilities and coordination mechanisms; and d) Often include legally binding measures, usually supported by legislation to ensure effective implementation. Furthermore, they convene stakeholders around a shared vision, helping to build robust impact ecosystems through sustained coordination and a long-term commitment.

Specific national strategies to foster impact economies or promote social impact investing are still relatively rare around the world, with current examples such as Brazil’s Ten-Year National Impact Economy Strategy (2023–2032) and Portugal’s 2030 Agenda for Impact (AFI30) standing out as the most ambitious and comprehensive. Other national strategies or blueprints tend to have a narrower scope, typically targeting either the demand for impact capital -eg. blueprints for social enterprises or broader frameworks for the social and solidarity economy - or the supply of capital, often via green or sustainable finance strategies aimed at mobilising financial flows towards environmental goals.