At the Community Foundation North Okanagan, their mission is to strengthen the Vernon community by fostering sustainable growth and meaningful impact. One way they can do this is through social finance – an investment approach that not only generates financial returns but also contributes to positive social, cultural and environmental change. As awareness of the power of financial decision-making grows, the Community Foundation is committed to helping donors and investors align their financial choices with their values.
Traditional investing vs. social finance
Traditional investing focuses primarily on maximizing financial returns. While this strategy has long been effective for building wealth, there is a growing recognition that investments can do more – they can serve a broader purpose that extends beyond profit.
Social finance presents an alternative by encouraging investors to consider the long-term impact of their financial decisions. It is not about sacrificing returns but rather about making investments that align with both financial growth and community well-being. By integrating social and environmental considerations into investment strategies, individuals and organizations can help shape a better future for Vernon and beyond.
Responsible investing: a step toward change
As awareness of global challenges such as climate change and social inequality grows, more investors are seeking ways to integrate their values into their financial strategies. Responsible investing takes this approach by incorporating Environmental, Social and Governance (ESG) factors into investment decisions. This allows investors to support companies and initiatives that prioritize sustainability, ethical business practices, and corporate responsibility.
Another method, socially responsible investing (SRI), involves actively selecting investments based on ethical and social criteria. This could include supporting businesses that promote environmental sustainability, uphold fair labour practices, or contribute to social equity. By choosing responsible investments, individuals can maintain a strong portfolio while fostering positive change in their communities.
Social finance & impact investing
Social finance encompasses two primary models: Finance First and Impact First investing.
- Finance First Investing: This model targets areas where social or environmental needs align with strong financial returns. For example, investing in sustainable industries or clean energy projects provides investors with competitive returns while also contributing to broader societal benefits.
- Impact First Investing: This model prioritizes social or environmental outcomes, sometimes accepting lower financial returns in exchange for meaningful community benefits. Investments in affordable housing, local healthcare initiatives, or education programs fall into this category, ensuring that resources are directed toward urgent community needs.
To learn more about how impact investing is shaping communities, visit Thrive Impact Fund.
Investing in Vernon’s Future
Vernon and the North Okanagan have a unique opportunity to benefit from social finance strategies. Community investing allows individuals and organizations to support local projects and initiatives that have a direct impact on the well-being of residents. Whether it’s funding programs that enhance healthcare access, investing in sustainable infrastructure, or supporting youth education initiatives, community-driven investments create lasting change.
At the Community Foundation North Okanagan, we believe that social finance is more than a trend – it is a powerful tool for shaping a prosperous and socially responsible future. By choosing investments that benefit both individuals and the community, we can foster a more inclusive, sustainable and resilient Vernon.
Whether donors are looking to start a fund, contribute to an existing initiative, or explore social finance opportunities, the Community Foundation is here to help guide them toward impactful, values-driven investments. Together, we can ensure that Vernon remains a thriving and caring community for generations to come.
To learn more about social finance and community investing, contact Leanne Hammond, Executive Director, Community Foundation North Okanagan, at 250-542-8655 or via email at leanne@cfno.org.