Financing for Social Impact | The Key Role of Tailored Financing and Hybrid Finance

November 09, 2017

EVPA

Introduction

The EVPA Knowledge Centre embarked on a nine-month journey with a group of over 30 experts to looking at how funding can be shaped in a way that meets the financial needs of the social purpose organisation (SPO) and at how different actors can collaborate in the VP/SI space to bring more resources to SPOs.

Supporting SPOs in the most appropriate way is crucial for venture philanthropy and social investment (VP/SI) organisations to maximise the social impact they can generate.Looking at both their characteristics and the financial needs of their potential grantees/investees, VP/SI organisations can customise their financial offer by choosing among a wide range of financial instruments (FIs – i.e.grants, loans, equity and hybrid financial instruments). VP/SI organisations can also structure innovative hybrid funds and financing mechanisms through which they can collaborate with other capital providers within the VP/SI space.

The EVPA report “Financing for Social Impact | The Key Role of Tailored Financing and Hybrid Finance” provides an overview of how to tailor the financial instruments to the needs of the social purpose organisations, by looking at pros and cons of each FI and selecting the ones that are the most suitable, based on the business model and the stage of development of the SPOs. The EVPA report also presents examples from the emerging field of hybrid finance, which helps bring more resources to developing societal solutions and increase the effectiveness in financing SPOs,also by de-risking traditional capital (i.e. public, commercial and retail).

Full report

Financing for Social Impact report cover - English version
Impact Strategies report cover - Spanish translation
Impact Strategies report cover - Portuguese translation
Download English versionDownload Spanish versionDownload Portuguese version

Translated in Spanish and Portuguese by

Latimpacto logo small 300x80px

Financial Instruments Overview

Two Pager Fis Cover Small

Webinar Recordings

Financing for Social Impact (31 January 2018)

Webinar | Innovative financing mechanisms for social impact – Perspectives from Latin America and Europe (10 June 2020)

Video interviews on tailored financing and hybrid finance

This article was written by

Alessia Gianoncelli Alessia Gianoncelli

Priscilla Boiardi Priscilla Boiardi

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