According to the NSW Office of Social Impact Investment,
Social impact investment seeks to generate social impact alongside financial return. The investment often brings together capital and expertise from the public, private and not-for-profit sectors to achieve a social objective. Investments can be made into companies, organisations or funds, whether they be not-for-profit or for-profit.
Types of social impact investment can include bonds, payment-by-results contracts, layered investments and outcomes-focused grants.
Examples of impact investment and social enterprise
Creative Land Trust, London
The Creative Land Trust London is securing artist workspaces through a combination of outright purchase of properties or long leases, and through planning policies. The funding comes from a blended capital model leveraging grant funding to attract impact investment at scale. Investment is structured as debt with a fixed rate of return to investors over an initial term.
Fairbnb.coop
Fairbnb is a social enterprise which promotes an ethical sharing economy, developed in response to the rise of ‘airbnb’ and similar platforms. Fairbnb invests 50% of its commission in community projects, which can include cultural development for local neighbourhoods.
For more ideas on how to fund the arts, please see my article on ArtsHub ‘How can we fund the future of the arts?’ and Kiley Arroyo’s great report on value-capturing and the report ‘Arts Plus: New models new money.’