Social Finance: Investing in Vernon’s Future

At Community Foundation North Okanagan, we believe that your contributions should do more than sit in a bank—they should build a better future.

As someone who works every day to strengthen our community in Vernon, BC, I’m constantly thinking about how we can build a better, more sustainable future for everyone. More than ever, I believe we have the power to use our money to make a positive impact—not just on our wallets, but on the people and the environment around us. This is where social finance comes in.

Social finance is an approach to investing that combines financial returns with the opportunity to create positive social, cultural, and environmental change. It’s about finding ways to make our investments work not just for us, but for the community, too. Let’s explore how social finance works and how it can complement more traditional forms of investing.

Traditional Investing vs. Social Finance

In traditional investing, the primary focus is often on financial returns. While this approach has been proven to grow wealth over time, there’s also an increasing recognition that investments can be made with a broader purpose in mind—one that goes beyond just profit.

Social finance offers an alternative by encouraging investors to think about the long-term impact of their investments, balancing financial goals with the desire to make a difference in the world. This isn’t about ignoring returns; it’s about seeking investments that align both financial growth and positive community outcomes.

Responsible Investing: A Step Toward Change

As awareness of social and environmental issues grows, many investors are looking for ways to align their financial decisions with their values. Responsible investing integrates Environmental, Social, and Governance (ESG) factors into the analysis of potential investments. This allows investors to support companies that prioritize sustainability and ethical practices, without compromising on the quality of their investments.

Another approach, socially responsible investing (SRI), involves selecting investments that align with specific values. This might include supporting companies that contribute to a cleaner environment or social causes while ensuring a balanced portfolio for financial security.

Social Finance & Impact Investing

Social finance offers two primary models for making an impact: Finance First and Impact First.

Finance First investing focuses on areas where social or environmental needs present opportunities for solid financial returns. For example, supporting sustainable industries that also offer competitive returns allows investors to achieve both financial growth and positive social impact.

Impact First investing, on the other hand, emphasizes the potential for social or environmental change, where financial returns may be secondary. This might involve supporting initiatives in areas like affordable housing or healthcare, where the social benefits are immense, even if the financial return isn’t as high. It’s about balancing what’s good for the community with a responsible financial approach.

In Vernon, we have a unique opportunity to invest directly in our own community. Community investing is all about supporting local projects and organizations that aim to improve the lives of our neighbors. This type of investing focuses on creating lasting change within our region, and it allows us to contribute to projects that have a direct, positive impact on our area, whether in education, healthcare, or sustainability.

Social finance isn’t just a passing trend—it’s a way to create real, positive change here in Vernon and the entire North Okanagan. By choosing investments that also benefit our community and the environment, we can ensure that our future is not only financially prosperous but also socially responsible.

Whether you’re starting a fund, donating to a cause, or exploring other investment options, remember that your financial decisions can help create a lasting impact. Together, we can build a brighter future for Vernon—one where both our community and our investments thrive.

Leanne Hammond
Philanthropy Advisor, Mother, and Perpetual Volunteer

Make the most of your giving, and contact Leanne Hammond, today!
Leanne Hammond, Executive Director
T: 250-542-8655 E: leanne@cfno.org