The effect of resources on social cooperatives' operations
In a significant move towards sustainable development, Fondazione Social Venture Giordano Dell'Amore has announced its investment in several social cooperatives using the innovative "Impact Grant" approach.
The foundation has already invested over 500,000 euros in four social cooperatives - Vesti Solidale, Alice, Chico Mendes, and La Miniera di Giove. In addition, it has decided to invest an additional 2.2 million euros in four more cooperatives, Aeper, Auxiluim, Il Ponte, and Pandora.
The Impact Grant is an innovative financial tool that allows part of the investment in equity to be transformed into a non-repayable contribution upon meeting pre-agreed social impact objectives. This approach aligns with the foundation's commitment to fostering economic and social benefits within local communities.
Impact4Coop, an impact investing program, has been contributing to social cooperatives since 2021. The program employs the Impact Grant Tool, a specialized grant management and impact measurement approach. This tool works by setting clear objectives, implementing structured data collection, leveraging technology and AI-driven analysis, and enabling transparency and strong coordination among funders and cooperatives.
The Impact Grant Tool ensures that funds are invested wisely, impact is tracked dynamically, and community-rooted economic and social benefits are fostered. It contrasts with traditional grant methods by emphasizing rigorous impact management and continuous improvement through data and technology integration.
Impact4Coop collects rich data on cooperative success factors, applies AI analytics for swift insight generation, and reports and visualizes impact clearly to stakeholders. This sophisticated mechanism aligns with best practices in maximizing grant impact and ensuring social innovation thrives within cooperative models, ultimately leading to stronger, more resilient social economies.
The focus of these investments is on the employment of vulnerable people and preserving and strengthening the social impact of services provided to communities. The foundation has received 28 applications from social cooperatives, with 70% based in Lombardy.
In a bid to further support social cooperatives, an additional million has been added to Impact4Coop, bringing the total resources for social cooperatives to 2.2 million euros. The investments will be directed towards type A, B, or mixed social cooperatives operating in Italy and in a strategic and operational development phase.
This strategic approach to investment in social cooperatives demonstrates Fondazione Social Venture Giordano Dell'Amore's commitment to creating positive change and supporting the growth of social economies.
The foundation will invest an additional 1 million euros in Impact4Coop, increasing the total resources for social cooperatives to 2.2 million euros. This investment will be directed towards finance businesses operating as type A, B, or mixed social cooperatives. These investments, together with the previously made investments in cooperatives like Vesti Solidale, Alice, Chico Mendes, and La Miniera di Giove, align with the foundation's business of fostering economic and social benefits within local communities.
