EVPA is grateful for the support of:

Head 7: Creating Social Value in Asia - Philanthropic or Investment

Capital?

Europe and Asia

44M km2 in Area

4.1B people

No integrated political/economic bloc

10M km2 in Area

0.7B people

European Union

AVPN

AVPN

AVPN’s platform brings together practitioners and supporters of venture philanthropy to deliver greater social impact

Greater Social Impact

AVPN currently has 115 members across 19 countries

VPOVPO

VPOVPO

Associate Members

Government or related

PracticingMembers

Professional Service Firms

Universities / Research

Wealth / Asset

Managers

CorporateCSR

Private Equity

Foundations

Jan – Mar’12

Roundtables:

Workshops:

Seminars:

Apr – Jun’12

Roundtables:

Workshops:

Seminars

Jul – Sep’12

Roundtables:

Workshops:

Seminars

Oct – Dec’12

Roundtables:

Workshops:

Seminars:

H1 2013

Annual Conf.

May 9 and 10

AVPN Member Services

Networks & Expertise from USA & Europe

2013 initiatives

1. VP fund formation

2. Deal flow database

HK

SGIN CN SG HK JP

SG

IN SG HK JP IN SG HK JP

IN SG HK JP

EVPA

Knowledge Center

Asian Venture Philanthropy Membership

AVPN member list at http://www.avpn.asia/member-directory

Creating Social Value in Asia:Philanthropic or Investment Capital?

www.dasra.org

Neera Nundy

Co-Founder, Dasra

www.dasra.org

• India’s giving in 2006 was $5 billion or 0.6% of GDP versus $300 billion (2.2% of GDP) in US

• Currently 127,000 millionaires in India; expected to double by 2015

• India has the world’s 12th largest HNI population and over 40% want to increase their donations

• India’s giving in 2006 was $5 billion or 0.6% of GDP versus $300 billion (2.2% of GDP) in US

• Currently 127,000 millionaires in India; expected to double by 2015

• India has the world’s 12th largest HNI population and over 40% want to increase their donations

Structural challenges such as lack of accountability and awareness causes this capital pool to be under-tapped

Dasra bridges this gap by connecting and enabling both

philanthropists and social leaders

The Indian Social SectorNeed for High Impact Philanthropy and Non Profits

• 3.3 million non profits in India, only 500 with budget > $100k and very few reach > 5,000 people

• Only 30 have a $5 million+ budget• Organizations lack managerial skills and

focused plans needed to scale • Less than 3% measure their impact in a

robust manner

• 3.3 million non profits in India, only 500 with budget > $100k and very few reach > 5,000 people

• Only 30 have a $5 million+ budget• Organizations lack managerial skills and

focused plans needed to scale • Less than 3% measure their impact in a

robust manner

Non Profits

There are two crucial stakeholders in bringing about social change: social entrepreneurs who deliver change in the field and philanthropists who support entrepreneurs with knowledge, funding, and networks. For real change to happen, we need to not only connect these two groups but also work hands-on to accelerate impact and scale.

Seemingly large sector, but lacks scale, quality and transparency, hence impact and funding is far

below potential

Philanthropy

8

www.dasra.org

Our Process

Introduction to Dasra

9

Our Mission We work with philanthropists, non profit organizations, social entrepreneurs and impact investors, to bring together knowledge, funding and people to catalyse large scale social change.

Our Theory of ChangeWe believe that if philanthropists and social entrepreneurs are given the skills, support and networks to become more strategic in their work, then increased funding will flow to the most impactful organizations and help move more people out of poverty faster.

Build Effective and Collaborative

Philanthropy

Identify and Support Leading

Social Entrepreneurs

Create Impact at Scale

Dasra is India's leading strategic philanthropy foundation. In Sanskrit, Dasra means “Enlightened Giving”.

Our ImpactSince 1999, Dasra has: • Engaged over 400 HNIs on strategic philanthropy• Published 8 in-depth sector research reports and other knowledge pieces• Strengthened growth plans of over 200 non-profits and social businesses• Helped direct over $15 Million to leading non profits

Build Knowledge and Insight

www.dasra.org

Private Philanthropy in India

10

India’s private philanthropy has doubled & is strong compared to some BRICS and Asian countries.

*Bain India Philanthropy Report 2011

Philanthropy in Transitional

China

Ailing Zhuang (PhD)

Co-Founder, Executive Director, Rende Center on Philanthropy Shanghai

Founder and Chair of the Board, NPO Development Center Shanghai

Co-Founder and CEO, Rende FoundationCo-Founder and Former President, China Foundation Center

2012 EVPA Annual Conference Dublin, Ireland

11

Leap-frogging Development of Philanthropy in China

Rapid growth of social organizations

Rapid growth of philanthropic giving

Rapid growth of voluntary services

Fast growth of support organizations for philanthropy

Emerging of new forms of philanthropy

2012 EVPA Annual Conference Dublin, Ireland

12

Causes of the Rapid Growth of Philanthropy in China

Rapid increase of massive social needs

Continuous and fast growing economy

Increasing awareness and willingness of citizen participation

Positive changes and improvement of social policy

2012 EVPA Annual Conference Dublin, Ireland

13

Transparency

Professionalism

Effectiveness

Policy limitation

Social recognition

Support system

Challenges for the Sustainability of Philanthropy

in China

2012 EVPA Annual Conference Dublin, Ireland14

Some Efforts Being Made in China

Rende Center on Philanthropy

• Research • Evaluation

NPO Development

Center Shanghai

• Capacity building

• Networking • One-stop program support

Rende Foundation

Shanghai

• Foundation Park

• Foundation Incubator

China Foundation

Center

• Information Hub for Foundations

• Knowledge Center

2012 EVPA Annual Conference Dublin, Ireland

15

Some Efforts Being Made in China

Narada Foundation

• Jingko Project

• Social Innovation Award

NPI

• NPO Incubator

• Institute for Social Entrepreneurs

YouChange Foundation

• YouChange Institution

British Council

• Training of social entrepreneurs

• Social Innovation Award

2012 EVPA Annual Conference Dublin, Ireland 16

What Can Venture Philanthropy Contribute to Improve the Sustainability of Philanthropy

in China?

Local players• Lanshan Social Investment; • Yu Social Investment Fund;• Xinhu Social Investment Fund;• YiMei Capital

International players• British Council;• US social impact investors;

EVPA/AVPN???

2012 EVPA Annual Conference Dublin, Ireland

17

Ian LearmonthExecutive Director

Social Finance and Philanthropy

Our story so far

• Established in 2002 by WorkVentures, AMP Foundation, BenSoc and Smith Family to provide a venture philanthropy model for NFPs

• Backed by some of Australia’s leading non-profit organisations, corporates and philanthropists, our networks are deep and well established.

• SVA offer strategic consulting, venture funding, a range of social finance models as well as ‘thought leadership’.

• 45 FTEs in Sydney, Melbourne, Brisbane and Perth and rep in ACT.

• Leveraging our commercial skills, we’ve brought new perspective to social sector initiatives such as the formation of the GoodStart Childcare syndicate.

The social finance landscape in Australia

The SEDIF FUNDs

Examples of social finance in Australia include the C’th government’s SEDIF fund, three pilot impact bonds, the Goodstart syndicate and some regional initiatives

1

The Goodstart syndicate

Purchase 678 child care centres from ABC Learning

3

Social impact bonds

• Bonds to reduce out-of-home-care:• UnitingCare Burnside (SVA advising)• The Benevolent Society

• Bond to address recidivism: Mission Australia

2

Other initiatives

Western AustraliaThe WA gov’t have commenced a $10m capacity building grant program for social enterprises.

4The social

finance landscape

Private investors

Commonwealth grant

Fund managers

Invested in social

enterprise

The structure of the SVA Social Impact Fund

Social investors and the Commonwealth government have contributed capital to SVA’s Social Impact Fund, which invests in social enterprise in Australia

The Social Impact Fund(unit trust)

Social enterprise

Social enterprise

Social enterprise

Social investors

(unit holders)

HNW individuals

PAFs

Foundations

DEEWR grant money

The trustee

Fund management

agreement

Trust deed

Governed by trust deed

Fund agreement

Social impact bonds in Australia and internationally

A social impact bond is a contract where the public sector agrees to pay a private service provider for delivering improved social outcomes that result in government savings

Generic structure of a social impact bond

GovernmentService provider

Private investor

Beneficiary of service

Cost savings to government

Government pays investors when desired outcomes are met

Summary

• Private funds used to fund preventative programs

• If the program meets agreed targets , the Government saves money and in recognition of cost savings repays investors principal and interest.

• If targets are not met, investors may not receive any compensation

History

• The first (GBP 5m) was arranged by Social Finance UK to reduce recidivism rates at Peterborough prison

• A number of new SIB programs are underway in NYC and Boston

Bonds in Australia

Three pilot impacts bonds are under negotiation in NSW

• Two Bonds to reduce out-of-home-care:• UnitingCare Burnside (SVA advising)• The Benevolent Society

• Bond to address recidivism: Mission Australia

Private investors fund a social

program

Direct and indirect cost savings accrue to

government

Summary

UnitingCare Burnside (service provider)

Special Purpose Vehicle

The structure of the UCB social impact bond

UCB is in the process of negotiating a social impact bond with the NSW government to reduce the number of children in out-of-home care. SVA is advising on Investor relations.

Immediate gov cost savings

Long term gov cost savings

Improved social outcomes

Loan agreement

Implementation agreement

Social investors

HNW individuals

PAFs

Commercial investors

Program beneficiariesDirect and indirect cost

savings accrue to government

The founders

• Unique non profit alliance

• 12 month period of building syndicate

Building the SyndicateBuilding the Syndicate

25

Capital Structure

Private Equity firms raise their equity

capital in advance and call on it as

needed

Private Equity firms have good

relationships with all the major banks and

can secure debt relatively easily

As a company limited by guarantee,

GoodStart needed 100% debt financing

Difficult to determine a rate of return that reflected the social and financial risks

and rewards

~10%return

~20-30%return

?return

GoodStart Capital StructureGoodStart Capital Structure

• Big Society Capital in Australia

• Federal SIBs and SIBs in other states

• Affordable housing

Other initiativesOther initiatives

Creating Social Value in Asia:Philanthropic or Investment Capital?