From escalating climate emergencies and deepening economic inequality to geopolitical instability, a worsening housing crisis, and the ongoing need for reconciliation with Indigenous\u00a0Peoples, the challenges we face demand a radical rethinking of\u00a0philanthropy. These problems require more than just\u00a0philanthropic dollars\u2014they call for a transformation in how we mobilize and deploy all forms of capital.<\/span>\u00a0<\/span><\/p>\n It has been a decade since the Sustainable Development Goals were adopted and we have only five years to go; yet today, only 17% of the targets are on track. Progress on half of the goals is weak or insufficient, and alarmingly, more than one third have stalled or even reversed.\u00b2<\/span> Meeting these ambitious goals will require an estimated $6 trillion in annual\u00a0investments.\u00b3<\/span><\/p>\n Globally, the financial system manages a staggering $100 trillion (4)<\/em><\/span> in assets under management. Worldwide, 260,000 foundations manage $1.5 trillion in assets. In Canada, approximately 11,000 foundations oversee $135 billion in assets (<\/span>5)<\/em>.<\/span>\u00a0<\/span><\/p>\n The issue\u00a0isn\u2019t\u00a0a lack of capital\u2014it\u2019s\u00a0how that capital is deployed. As someone aptly put it,\u00a0<\/span> <\/span>\u201cthere\u2019s a plumbing problem in our financial systems\u201d<\/span><\/b>.\u00a0<\/span><\/p>\n The flow of capital is not being channeled effectively toward creating meaningful impact. This is where catalytic capital plays a crucial role. As a subset of impact investing, catalytic capital addresses gaps\u00a0left\u00a0by mainstream\u00a0finance, enabling outcomes for people and the planet that would otherwise remain out of reach.<\/span>\u00a0<\/span><\/p>\n Philanthropy holds a unique position in the\u00a0capital\u00a0landscape. It has the power to unlock far greater financial flows by\u00a0leveraging\u00a0its assets strategically. Philanthropy can catalyze larger investments, de-risk bold initiatives, and amplify both government funding and private capital.\u00a0By doing so, it enables the kind of large-scale, systemic change needed to tackle the world\u2019s most pressing challenges.<\/span>\u00a0<\/span><\/p>\n If\u00a0we\u2019re\u00a0to harness the potential of markets to solve global problems, we must move beyond celebrating incremental progress. We need to think bigger, act faster, and collaborate more effectively. The scale and urgency of the challenges we face demand nothing less than a reimagined financial system. Philanthropy\u00a0must\u00a0act as a powerful lever to accelerate impact and drive meaningful\u00a0systems\u00a0change.<\/span>\u00a0<\/span><\/p>\n We draw inspiration from\u00a0leading philanthropic organizations\u00a0in Canada\u00a0that are paving the way in innovative approaches\u2014from\u00a0<\/span>McConnell Foundation<\/span><\/a>\u2019s initiatives to build intermediary capacity\u00a0for a thriving social finance ecosystem,\u00a0to\u00a0<\/span>Inspirit Foundation\u2019s<\/span><\/a>\u00a0100% impact\u00a0portfolio\u00a0commitment and use of 0% loans to equity-deserving groups,\u00a0to\u00a0<\/span>Dragonfly Ventures\u2019<\/span><\/a>\u00a0grants\u00a0for\u00a0development capital to emerging social finance initiatives. Building on these and other leaders\u2019\u00a0efforts,\u00a0the Definity Foundation\u00a0is\u00a0exploring how to strengthen the\u00a0ecosystem\u00a0by providing grants\u00a0to\u00a0social finance\u00a0intermediaries, enabling them to develop and scale creative financial solutions, such as the\u00a0creation of new funds\u00a0like the\u00a0<\/span>Raven\u00a0Indigenous\u00a0Outcomes Fund<\/span><\/a>\u00a0(RIOF)\u00a0and the\u00a0<\/span>African Canadian Farmers Fund<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n Our thesis is that through innovative approaches to utilizing capital, we can collectively achieve systemic change at scale. Strategies for scaling transformative capital include:\u00a0<\/span><\/p>\n Imagine what we could\u00a0accomplish\u00a0if philanthropy came together around a shared agenda to strengthen the\u00a0impact\u00a0ecosystem\u00a0and provide catalytic capital.\u00a0We aim to enhance the success of initiatives such as\u00a0<\/span>Windmill<\/span>\u00a0Microlending<\/span><\/a>\u00a0and the RIOF; to ensure initiatives such as\u00a0<\/span>EntrepreNorth<\/span><\/a>\u00a0can support their pipeline\u00a0of Indigenous entrepreneurs; and to enable\u00a0<\/span>Rel\u00e8ven<\/span>\u00a0Transition Fund<\/span><\/a>\u00a0to\u00a0ensure\u00a0vast\u00a0community assets are\u00a0retained\u00a0for\u00a0local\u00a0community benefit.\u00a0We seek ways to support funds led by and for Indigenous,\u00a0Black\u00a0and other racialized\u00a0communities, groups that are furthest behind\u00a0and\u00a0continue to face systemic barriers to accessing capital.\u00a0By\u00a0leveraging\u00a0market tools like loans, concessionary finance, and equity finance, and empowering communities to decide how and where capital flows, we can achieve better outcomes.\u00a0Through these efforts, we hope to drive transformative, justice-centered change.<\/span>\u00a0<\/span><\/p>\n But we need a tipping point.\u00a0<\/span>A few forward-thinking foundations\u00a0exploring these strategies\u00a0isn\u2019t\u00a0enough.\u00a0With over $100 billion in assets managed by foundations in Canada, even\u00a0directing\u00a0just 10%\u00a0towards impact investments could unlock transformative capital\u00a0for the sector.\u00a0<\/span><\/b>We need\u00a0a mindset\u00a0shift\u00a0away\u00a0from\u00a0only granting with our right hands from the\u00a0money\u00a0made by\u00a0our left hands behind our back\u00a0with no visibility to the harms and\u00a0missed\u00a0opportunities at hand.\u00a0There is\u00a0much space in between.<\/span>\u00a0<\/span><\/p>\n Last November, we had the opportunity to\u00a0participate\u00a0in the Sustainable Finance Forum.\u00a0We\u00a0are encouraged by mainstream financial actors\u00a0adopting\u00a0shared scoping and standards for what does and does not constitute sustainable investment.\u00a0The calls to action by Mark Carney\u00a0to expand and make mandatory climate disclosures\u00a0were important messages\u00a0to be delivered to public policymakers.\u00a0It was refreshing to\u00a0witness\u00a0Victoria Hurth\u00a0speaking truth and\u00a0calling\u00a0out\u00a0that we must\u00a0shift from\u00a0merely\u00a0tacking on\u00a0social and environmental considerations\u00a0while\u00a0maintaining\u00a0the same self-interested\u00a0investment\u00a0parameters, to re-envisioning the purpose of capital to foster our collective and planetary wellbeing.\u00a0And\u00a0we were glad to see the\u00a0community finance sector\u00a0highlighting community-led solutions to foster sustainable rural and remote communities.\u00a0These important\u00a0sustainable finance\u00a0conversations risk staying just that\u2014talk\u2014without follow-up\u00a0action\u00a0and\u00a0without\u00a0philanthropic capital\u00a0helping to catalyze this action.<\/span>\u00a0<\/span><\/p>\n To unlock this potential, we need to make it easier to mobilize assets and offer investors more choice. We must dispel myths about impact investing, engage a new generation of mission-driven investors, and rethink the use of market tools in bold and innovative ways. By doing so, we can drive reconciliation and achieve the social, economic, health, and environmental outcomes we\u00a0shape a more\u00a0equitable\u00a0and sustainable future for Canada and its\u00a0peoples.<\/span>\u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n What bold steps do you think philanthropy and impact investing should take to drive transformative change? Join the conversation and share your ideas!<\/span><\/b><\/p>\n <\/span><\/b><\/p>\n 1 \u201c2024 shatters record for costliest year for severe weather-related losses in Canadian history at $8.5 billion\u201d. Insurance Bureau of Canada. 13-Jan-2025. https:\/\/www.ibc.ca\/news-insights\/news\/2024-shatters-record-for-costliest-year-for-severe-weather-related-losses-in-canadian-history-at-8-5-billion<\/a>\u00a0<\/span><\/b><\/p>\n 2<\/span><\/span>\u00a0\u201c<\/span><\/span>The Sustainable Development Goals Report 2024<\/span><\/span>\u201d.\u00a0<\/span>United Nations.\u00a0<\/span>28-June-2024.\u00a0<\/span>https:\/\/unstats.un.org\/sdgs\/report\/2024\/<\/a>\u00a0<\/span><\/span> \u00a0<\/span><\/span><\/b><\/p>\n 3<\/span><\/span>\u00a0\u201c<\/span><\/span>Annual cost for reaching the SDGs? More than $5 trillion<\/span><\/span>\u201d<\/span>. United Nations.\u00a0<\/span>19-Sept-2023.<\/span>\u00a0<\/span>https:\/\/news.un.org\/en\/story\/2023\/09\/1140997<\/a> <\/span><\/span>\u00a0<\/span><\/span><\/span><\/b><\/p>\n 4<\/span><\/span>\u00a0\u201c<\/span><\/span>The $100 Trillion Machine.<\/span><\/span>\u201d\u00a0<\/span>Boston Consulting Group<\/span>.\u00a0<\/span>July-2021.\u00a0<\/span>https:\/\/www.bcg.com\/publications\/2021\/global-asset-management-industry-report<\/a> <\/span><\/span>\u00a0<\/span><\/span><\/span><\/span><\/b><\/p>\n 5<\/span><\/span>\u00a0\u201cPFC Landscape Report 2024.\u201d Philanthropic Foundations of Canada<\/span>.<\/span>\u00a04-Jun-2024.\u00a0<\/span>https:\/\/pfc.ca\/documents\/pfc-landscape-report-2024\/<\/a> <\/span><\/span>\u00a0<\/span><\/span><\/span><\/span><\/span><\/b><\/p>\n <\/span><\/b><\/p>\n [\/et_pb_text][et_pb_text _builder_version=\u00a0\u00bb4.27.4″ _module_preset=\u00a0\u00bbdefault\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb theme_builder_area=\u00a0\u00bbpost_content\u00a0\u00bb][\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" It is 2025\u2014the start of a new calendar year brings forth sentiments of new possibilities, resolute action to improve our wellbeing, and hence new beginnings! However, the actual news reels in the first weeks of January have already been dominated with wildfires scorching West Coast neighbourhoods. Hardly new beginnings, it rather feels like haunting and […]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"It is 2025\u2014the start of a new calendar year brings forth sentiments of new possibilities, resolute action to improve our wellbeing, and hence new beginnings! However, the actual news reels in the first weeks of January have already been dominated with wildfires scorching West Coast neighbourhoods. Hardly new beginnings, it rather feels like haunting and tragic memories from last summer in Alberta. Indeed, the damages due to severe weather in 2024 were historic and far dwarfed all previous recorded years in terms of the $8+ billion in insured losses compared to the previous record of $6.2 billion in 2016, then caused by wildfires in Fort McMurray.[1]<\/a>\n\n\n
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![\"\"](\"https:\/\/definityfoundation.org\/wp-content\/uploads\/Globe_wide-002-e1738634798764.jpg\")
From escalating climate emergencies and deepening economic inequality to geopolitical instability, a worsening housing crisis, and the ongoing need for reconciliation with Indigenous Peoples, the challenges we face demand a radical rethinking of philanthropy. These problems require more than just philanthropic dollars\u2014they call for a transformation in how we mobilize and deploy all forms of capital.\n\nIt has been a decade since the Sustainable Development Goals were adopted and we have only five years to go; yet today, only 17% of the targets are on track. Progress on half of the goals is weak or insufficient, and alarmingly, more than one third have stalled or even reversed.[2]<\/a> Meeting these ambitious goals will require an estimated $6 trillion in annual investments.[3]<\/a>\n\nGlobally, the financial system manages a staggering $100 trillion[4]<\/a> in assets under management. Worldwide, 260,000 foundations manage $1.5 trillion in assets. In Canada, approximately 11,000 foundations oversee $135 billion in assets[5]<\/a>.\n\u201cthere\u2019s a plumbing problem in our financial systems\u201d<\/strong><\/blockquote>\nThe issue isn\u2019t a lack of capital\u2014it\u2019s how that capital is deployed. As someone aptly put it, \u201cthere\u2019s a plumbing problem in our financial systems\u201d. The flow of capital is not being channeled effectively toward creating meaningful impact. This is where catalytic capital plays a crucial role. As a subset of impact investing, catalytic capital addresses gaps left by mainstream finance, enabling outcomes for people and the planet that would otherwise remain out of reach.\n\nPhilanthropy holds a unique position in the capital landscape. It has the power to unlock far greater financial flows by leveraging its assets strategically. Philanthropy can catalyze larger investments, de-risk bold initiatives, and amplify both government funding and private capital. By doing so, it enables the kind of large-scale, systemic change needed to tackle the world\u2019s most pressing challenges.\n\nIf we\u2019re to harness the potential of markets to solve global problems, we must move beyond celebrating incremental progress. We need to think bigger, act faster, and collaborate more effectively. The scale and urgency of the challenges we face demand nothing less than a reimagined financial system. Philanthropy must act as a powerful lever to accelerate impact and drive meaningful systems change.\n\nWe draw inspiration from leading philanthropic organizations in Canada that are paving the way in innovative approaches\u2014from McConnell Foundation's<\/a>\u00a0initiatives to build intermediary capacity for a thriving social finance ecosystem, to Inspirit Foundation\u2019s<\/a> 100% impact portfolio commitment and use of 0% loans to equity-deserving groups, to Dragonfly Ventures\u2019<\/a> grants for development capital to emerging social finance initiatives. Building on these and other leaders\u2019 efforts, the Definity Foundation is exploring how to strengthen the ecosystem by providing grants to social finance intermediaries, enabling them to develop and scale creative financial solutions, such as the creation of new funds like the Raven Indigenous Outcomes Fund<\/a> (RIOF) and the African Canadian Farmers Fund<\/a>.\n\nOur thesis is that through innovative approaches to utilizing capital, we can collectively achieve systemic change at scale. Strategies for scaling transformative capital include:\n
\n \t
\"A few forward-thinking foundations exploring these strategies isn\u2019t enough. With over $100 billion in assets managed by foundations in Canada, even directing just 10% towards impact investments could unlock transformative capital for the sector.\"<\/strong><\/blockquote>\nBut we need a tipping point. A few forward-thinking foundations exploring these strategies isn\u2019t enough. With over $100 billion in assets managed by foundations in Canada, even directing just 10% towards impact investments could unlock transformative capital for the sector. We need a mindset shift away from only granting with our right hands from the money made by our left hands behind our back with no visibility to the harms and missed opportunities at hand. There is much space in between.\n\nLast November, we had the opportunity to participate in the Sustainable Finance Forum. We are encouraged by mainstream financial actors adopting shared scoping and standards for what does and does not constitute sustainable investment. The calls to action by Mark Carney to expand and make mandatory climate disclosures were important messages to be delivered to public policymakers. It was refreshing to witness Victoria Hurth speaking truth and calling out that we must shift from merely tacking on social and environmental considerations while maintaining the same self-interested investment parameters, to re-envisioning the purpose of capital to foster our collective and planetary wellbeing. And we were glad to see the community finance sector highlighting community-led solutions to foster sustainable rural and remote communities. These important sustainable finance conversations risk staying just that\u2014talk\u2014without follow-up action and without philanthropic capital helping to catalyze this action.\n\nTo unlock this potential, we need to make it easier to mobilize assets and offer investors more choice. We must dispel myths about impact investing, engage a new generation of mission-driven investors, and rethink the use of market tools in bold and innovative ways. By doing so, we can drive reconciliation and achieve the social, economic, health, and environmental outcomes we shape a more equitable and sustainable future for Canada and its peoples.\n\n_______________________________________________________________________________________________<\/b>\n\n[1]<\/a> \u201c2024 shatters record for costliest year for severe weather-related losses in Canadian history at $8.5 billion<\/em>\u201d. Insurance Bureau of Canada. 13-Jan-2025. https:\/\/www.ibc.ca\/news-insights\/news\/2024-shatters-record-for-costliest-year-for-severe-weather-related-losses-in-canadian-history-at-8-5-billion<\/a>\n\n[2]<\/a> \u201cThe Sustainable Development Goals Report 2024<\/em>\u201d. United Nations. 28-June-2024. https:\/\/unstats.un.org\/sdgs\/report\/2024\/<\/a>\n\n[3]<\/a> \u201cAnnual cost for reaching the SDGs? More than $5 trillion<\/em>\u201d. United Nations. 19-Sept-2023. https:\/\/news.un.org\/en\/story\/2023\/09\/1140997<\/a>\n\n[4]<\/a> \u201cThe $100 Trillion Machine.<\/em>\u201d Boston Consulting Group. July-2021. https:\/\/www.bcg.com\/publications\/2021\/global-asset-management-industry-report<\/a>\n\n[5]<\/a> \u201cPFC Landscape Report 2024.<\/em>\u201d Philanthropic Foundations of Canada. 4-Jun-2024. https:\/\/pfc.ca\/documents\/pfc-landscape-report-2024\/<\/a>","_et_gb_content_width":"","footnotes":""},"categories":[54,61,52],"tags":[],"class_list":["post-50378","post","type-post","status-publish","format-standard","hentry","category-blog-fr","category-impact-investment","category-learning"],"acf":[],"_links":{"self":[{"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/posts\/50378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/comments?post=50378"}],"version-history":[{"count":28,"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/posts\/50378\/revisions"}],"predecessor-version":[{"id":54677,"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/posts\/50378\/revisions\/54677"}],"wp:attachment":[{"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/media?parent=50378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/categories?post=50378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/definityfoundation.org\/fr\/wp-json\/wp\/v2\/tags?post=50378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}