Sustainable finance
Social Finance
Definition
Social finance is the provision of finance with the explicit intention of achieving social impact alongside financial return, spanning social and ethical banks, credit unions and community development finance institutions (CDFIs), microfinance, social enterprise investment, social impact bonds and the social end of impact investing. It is distinguished from conventional finance by intentionality (impact as an objective), and from pure philanthropy by the expectation of capital preservation or return.
References
Supports definition and framing.
Supports definition and framing.
Overview
How it is used
The concept structures community finance policy, microfinance regulation, social impact investment markets, and EU social economy finance initiatives.
Why it matters
Social finance demonstrates that capital allocation can be governed by social purpose — the proof of concept behind the entire impact investment movement.