lucid, Berlin

Social Investment: Financing Social Change

 

At its core, social impact investment is about bridging the gap between social impact creation and the provision of capital. The development of a market for social impact investment enlarges the capital base for socially motivated organisations and thus provides space for prevention, innovation and scaling-up of impactful approaches in the social sector.

Project Description

With the project „Social Investment – Financing Social Change“, the Bertelsmann Foundation is testing the structural conditions for the implementation of different social impact investment models and is contributing to the development of a market for social impact investment (SII). Such a market provides additional financial means for prevention, innovation and scaling-up of impactful approaches in the German social sector. The project is structured along two complementary project parts: on the one hand, feasibility analyses for the implementation of specific financing approaches in the German social sector are conducted, on the other hand membership in national and international committees ensures the development and transfer of knowledge on SII.

Agenda Setting

Within the framework of the international Social Impact Investment Taskforce established by the G8 (SIITF), the Bertelsmann Stiftung has been involved in the development of recommendations aimed at establishing and developing social impact investment markets. All G7 member states formed National Advisory Boards (NABs), tasked with informing the SIITF about country-specific conditions and experiences with private investment capital within the framework of their respective social sectors. The German NAB united more than 40 experts from 36 organisations within the social, financial, philanthropic, public and academic sectors, thus broadening both its own scope as well as the acceptance of the concept of SII in Germany. Chaired by Dr Brigitte Mohn, member of the board of the Bertelsmann Stiftung, the German NAB conducted a review of the status quo and developed recommendations for the development of SII in Germany.

Projects