Registered charities in Canada find themselves increasingly drawn to find ways of operating through partnerships and networks, but there are legal impediments they face in doing their work.
Social finance brings the challenge of how to reconcile two dynamics that historically have been opposed: the private interest for profit and the common interest for public benefit.
Increasingly, charities are looking at using their funds and other resources to contribute to positive social change, as well as to obtain a financial return. But does the law permit them to do so?
Are charities legally permitted to make impact investments with their funds? Yes, but, getting to "yes" is not straightforward, and depends on the circumstances.