The application period for Round 1 is now open and closes on May 15, 2020. Subsequent application periods will be held in the Summer and Fall of 2020. Exact dates will be announced before July 2020.
Apply to the Investment Readiness Program by completing the following application. And submitting via e-mail to our IRP coordinator Shady Hafez by May 15, 2020. Below is a guide to the application, if you have any questions that can't be answered by the information below, please contact Shady Hafez.
The NAFC is one of five Readiness Support Partners mandated by the Government of Canada to deliver funding for the IRP. The IRP, through the five funding partners, will distribute $50 million to social purpose organizations (charities, non-profits, social enterprises, for-profits with a social purpose and co-operatives) to help build their capacity to participate in Canada’s growing social finance market. The IRP is also designed to help social purpose organizations (SPOs) prepare for the Government of Canada’s broader investment in social finance via the Social Finance Fund, a historic new $755 million commitment which was announced in November 2018 and is expected to be launched in 2020.
As a Readiness Support Partner, the NAFC is administering $1.12 million in funding from the Government of Canada that will be made available as non-repayable capital to FCs and PTAs.
NAFC is working closely with the other four national organizations delivering the Government of Canada’s IRP funding. FCs and PTAs may also eligible to receive support from the other funding partners. To learn more about other Readiness Support Partners’ funding programs, criteria, and application periods, please visit their websites:
- Community Foundations of Canada
- Chantier de l’economie sociale
- Canadian Women’s Foundation
- National Aboriginal Capital Corporations Association
NAFC IRP webinar
In April, we hosted a webinar outlining the program, and took time to answer any questions FC and PTA staff may have had. Find the presentaion and transcript below, a video of the webinar will be made available in the next few days.
The NAFC will support and encourage the growth and readiness of FCs and PTAs to join the social innovation and social finance ecosystem. Through the Investment Readiness Program funding, we aim to:
- Increase Friendship Centre and PTA engagement in the social finance ecosystem;
- Enhance Friendship Centres and PTA capacity to develop enterprises to help support service delivery and advance their respective missions;
- Increase Friendship Centre and PTA accessibility to expert advice and information; and
- Advance Friendship Centres and PTAs towards investment readiness.
All NAFC-member local FCs and PTAs are eligible to apply for IRP non-repayable capital. To be eligible for the IRP, FCs and PTAs must demonstrate that:
- They have, or intend to operate, a mechanism that generates revenue from the sales of goods and/or services;
- They have, or plan to build, capacity and expertise to carry out the proposed project for which they are applying;
- That the proposed project will assist the FC or PTA in fulfilling their respective missions.
The NAFC will hold three (3) IRP application periods before March 31, 2021.
There will be three deadlines throughout 2020. The application period for Round 1 opens on April 15, 2020 and closes on May 15, 2020. Subsequent application periods will be held in the Summer and Fall of 2020. Exact dates will be announced before July 2020.
FCs and PTAs can be in the early or late stages of development and anywhere in between, however we have dedicated specific amounts to various stages of development, please refer to the following funding streams to see where you fit:
- Explore ($10,000-$15,000K)
Exploration and ideation of the initiative - aligning a proposed solution to an identified need. Examples include: Feasibility analysis and community support development; business model development; use of data for planning & impact measurement; and diversification of funding sources. If the enterprise is not an existing enterprise or if research and development has not been carried out prior to this application, you must apply for the Explore stream in the first application round.
- Start ($15,000-$50,000)
Needs identified, business feasibility demonstrated, plan and model in place and developed. Ready to begin early phases of implementation.
- Grow ($15,000-$75,000)
Sustainable cash flow and assets, track record for sustainability and networking with prospective investors. Funds will be used to grow and expand the enterprise.
- Assess / Impact ($10,000-$15,000)
Explore and evaluate the impact of an existing project or funded project.
- Large Scale Project ($80,000+)
Project or idea that requires over $80,000 to realize. Demonstrate business feasibility, community support, diversification of funding sources and any current cash flow and track record for sustainability.
The IRP provides funding in the form of a grant to cover the following expenses:
- Specialized support service by a qualified professional who acts as an external resource and who is selected by the organization on the basis of a detailed service offer: costs related to customized support, participation in an incubator or an accelerator;
- Financing of studies carried out by a qualified professional, who acts as an external resource and who is selected by the organization on the basis of a detailed service offer: organizational diagnosis, cost analysis and implementation systems, market research, technical studies, plans and specifications, business plan, marketing plan, development plan, financial forecasts or any other study relevant to the realization of a project;
- Hiring essential internal human resources (project manager, coordinator and others) to carry out the investment readiness project;
- Production of prototypes (including market and product/service tests);
- Travel, representation and other expenses deemed essential to the completion of the project;
- Research and development (R & D) related expenses;
- Expenses related to the development of the organization’s project: expenses related to the rental of premises, computer equipment, telecommunications cost, supplies and other operating expenses;
- Market solicitation fees;
- Acquisition of technology, software or software packages, patents and any other expenses of a similar nature;
- Viability study;
- Impact measurement;
- Minor asset purchases (must be related to enterprise development);
- Minor renovations (must be related to enterprise development); and
- Software or web design product.
Other expenses may be considered. To receive guidance, please contact our IRP Coordinator, Shady Hafez.
What the non-repayable capital cannot be used for?
IRP non-repayable capital cannot be used for Friendship Centre or PTA regular operating costs (“core” costs). This includes ongoing administration costs, funding for additional permanent staff, rent, or procuring real estate.
IRP funds cannot be used for Covid-19 small business relief, if you are seeking small business support for your enterprise please refer to this document for more information on small business relief in your region.
To be considered for non-repayable capital from IRP, applicants must meet all IRP eligibility criteria, provide the required supporting documentation and describe their social enterprise’s social, environmental or cultural impact or desired impact. Enterprises must demonstrate sound business practices and planning. As well:
- Friendship Centres or PTAs must have, or plan to operate, a mechanism that sell goods and/or services.
- The proposed project must move the organization forward (towards investment readiness) in its enterprise development.
- FCs and PTAs must demonstrate they have a detailed and appropriate budget for their project.
The following are the NAFC’s definitions of each term.
Social Purpose Organization: A social purpose organization (SPO) is an organization that is not centred on monetary profit and is advancing a social, cultural or environmental mission. A SPO can be a charity, non-profit, social enterprise, co-operative, or for- profit social enterprise. For the purposes of the IRP, the NAFC considers all NAFC-member FCs and PTAs to be social purpose organizations.
Social Economy: Friendship Centres play an important role in the social economy. The NAFC is adopting wording from Chantier de l’économie sociale regarding the definition of social economy. For the NAFC-funded component of the IRP, the NAFC will consider all economic activities with a social purpose carried out by FCs who either operate or own for-profit enterprises, whose activities consist of the sale or exchange of goods or services with the purpose of meeting the needs of urban Indigenous community members or the community as a whole.
Social Enterprise: A social enterprise is a business, whether independent or owned by an organization, that is mission-driven, aiming to sell goods or services to earn a revenue, while also helping achieve positive social, cultural or environmental objectives. FCs often operate social enterprises as either a subsidiary business or operate the social enterprise directly in addition to its non-profit work. As social enterprises, the revenue generated from FC-owned businesses should support the delivery of services or the overall mission of the FC itself.
Social Finance: Social finance is an investment that has a positive social, cultural or environmental impact that also generates some return for investors. Through loans and investments, social finance can give FCs access to opportunities to create new streams of revenue and in turn sustain the missions of FCs.
Social innovation: Social innovation supports new solutions to pressing social, cultural and environmental concerns. However, many of the social innovations that are developed by Indigenous communities and organizations are not necessarily new but rather are drawn from Indigenous principles and ways of knowing. In some situations, a social innovation may include the resurgence of an Indigenous way of knowing, practice, or approach to a contemporary matter.
Investment Readiness: Under the IRP, the NAFC seeks to support FCs and PTAs with acquiring skills, knowledge, techniques that, once mastered and implemented within the Friendship Centre movement, will move down the readiness spectrum and increase preparedness for financial investment in FC social enterprises. In preparing for investment, FCs can adopt approaches related to new entrepreneurial projects and new tools to attract new investment to increase the impact of their social mission.
The NAFC developed this flowchart to assist FCs and PTAs identify which stream may be appropriate for them.