Queen s Social Investment Initiative An Overview & 2014-15 Year in Review Queen s Social Investment Initiative 2014 2015 1
Sustainable Fundraising Model Economics of Capital Deployment FUNDING DEPLOYMENT 4 As an authoritative resource in all things social investing, the organization gives back to the greater Queen s Community through education, insight, and events Loan Repayment Organizational Value Proposition 2a The AMS, through a referendum, determines clubs that add value to the student body (such as QS2i), and funding is distributed pro rata to this perceived value Education, On-theground local support Repayment Loan 1 Opt-Outable Fee Queen s University students are charged an annual, opt-outable fee by the AMS 2b Sponsorship Corporate sponsors interested in making an impact through social investing provide us with funding for an operating budget 3 Through the use of local field partners such as Educate! and alumnus Peter Morrin, QS2i is exposed to education and trained entrepreneurs seeking capital and investment at affordable rates. Not only do we provide debt financing to foster sustainability and economic growth, our local partners on the ground educate entrepreneurs on best practices and financial management. Our relationship with Alma Mater Society allows for a sustainable and secure funding model that eliminates the need to expend resources on fundraising, instead allowing greater focus on investments and operations Solid blue arrows denote fund flows, broken blue arrows denote all other flows 2
Special Projects Peter Morrin: Local Field Partner & Mentor Overview of Our Partnership Peter is a Queen s University Alumnus and retired structural engineer who has been doing social development work in East Africa since 2011 For the last three years, he has worked in Tanzania and Uganda on a wide variety of projects which include: Installation of solar power systems for lighting internet services and water pumping Tools for Africa program which ships donated carpentry tools to Tanzanian trade schools Development of a 400 hen egg-laying operation Coordination of student work-terms in Tanzania (University of Sherbrooke) Sponsorship of Tanzanian students in pursing higher degrees (specifically civil engineering) In 2012, Peter approached QS2I to assist with the development of a small business to rent solar powered lanterns and provide cell phone charging services in a small village 60 km west of Kampala, Uganda. Peter meets regularly with our organization and is a respected mentor and source of inspiration 3
What is the Queen s Social Investment Initiative? Overview A micro-finance initiative influencing economic development across the globe Queen s Social Investment Initiative ( QS2I ) is the first university-based impact investing organization in Canada We engage and assist local development groups in low-income markets that have the potential to create employment/growth capacity for their communities Investment fund is sourced from annual student opt-out fees, which is in turn used to make business loans in developing countries through our local field partners Through investments, QS2I s goal is to increase the access to capital for educated and/or trained entrepreneurs, reducing unemployment and assisting in breaking the cycle of poverty for future generations Through education, QS2I s goal is to increase awareness and knowledge on campus about impact investing, microfinance and social entrepreneurship We do this predominantly through two annual events, the Queen s Microcredit Competition and a Symposium on Economic Development, as well as other smaller events Guiding Pillars Investment Portfolio Creating Social Impact Education & Development 4
Annual Symposium on Economic Development March 13 th, 2015 sponsored by Deloitte & QSB Centre for Social Impact Symposium allowed undergraduate students from various faculties (business, economics, global development, etc.) to learn from professionals within the industry Speakers Delegate Breakdown David Chemla, Vice President Deloitte Infrastructure Advisory William Sutherland, Principal Kensington Capital Engineering 3% Arts & Science 50% Commerce 47% Samer Abughannam, Senior Associate & Social Impact Bond Lead MARS Centre for Impact Investing Growth Delegate Attendance: 15 60 Sponsorship Funding: $500 $3000 5
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Integration of Queen s Microcredit Challenge Growth of our investment portfolio and expanded network of resources Integration provides QS2I with dual-ratification status under both the Queen s Alma Mater Society and the Queen s Commerce Society Queen s Microcredit Challenge (QMCC) Founded in 2007, QMCC is a unique competition that looks to combine business acumen with creativity, philanthropy, entrepreneurial talent and professional mentorship Students receive a $100 micro-loan to start up a small business on campus and are competing against each other to turn the most profit We are looking into incorporating QMCC into the competition/challenge segment of our annual Symposium on Economic Development Dual-Ratification We will maintain our current AMS student opt-out fee and ratification as an AMS club Additionally, will gain access to Commerce Society resources and network 7
Investments New Partnership formed with NGO in Uganda Re-thought our investment strategy to focus more on direct private investments with partners versus traditional online microfinance platforms Exciting New Partnership Formed a partnership with Educate! in Uganda Educate! delivers an experience-based education model, comprised of leadership, entrepreneurship and workforce readiness training, a practically trained mentor, and experience starting a business to secondary school youth in Uganda Educate! aims to transform secondary education in Africa to bring youth out of poverty and develop the leaders and entrepreneurs necessary to drive development Partnership provides Educate! entrepreneurs with access to capital QS2I will accept applications from entrepreneurs who have completed the training program and will aim to fund five to ten businesses per year 8
Investments Two loans deployed in 2014-15; One repayment Deployment of Capital Operations Manager at Tugende, a social enterprise based in Uganda Bachelor s degree in Engineering from Kyambogo University; graduate of the Educate! Experience entrepreneurship training program Loan of C$900 to open up a PayWay point-of-sale terminal in Mbarara, Uganda Paul Sselunjoji PayWay terminal used by everyday consumers to pay for bills, including cellular airtime, water and electricity, satellite television, motorcycle lease payments, and more; commission earned on each transaction Accounting Officer at Tugende, a social enterprise based in Uganda Bachelor s degree in Business Administration from Makerere University Loan of C$1,250 to open up a retail shop in Nsambya suburb of Kampala, Uganda Irene Achomo Provides access to basic consumer goods in a previously underserved community Capital Repayment C$1000 repaid from Leonard Kawuma, through field partner Peter Morrin, from solar-powered lantern rentto-own business venture in Kamengo, Uganda 9
Research Added pillar to grow awareness on campus Resources relating to social investment are scarce- this has prompted us to make serious strides to begin laying the foundation for an in-house research arm Research Initiatives Fall Semester: Introduction to Microfinance public seminar Winter Semester: Completed two research reports Uganda Solar Power case study Asia-Pacific Infrastructure case study External Events Team members attended two external impact investing / social enterprise conferences: Columbia Social Enterprise Conference, October 2014 MaRS Social Finance Forum, November 2014 10