Instead of maximizing profit at all costs, the Vancity Group uses the tools of finance to tackle systemic challenges and create lasting social and environmental impact.

A financial force for change

As part of the Vancity Group, Vancity Community Investment Bank (VCIB) is a values-based bank and the only federally chartered bank in Canada that exclusively finances organizations and projects that are driving positive impact in our communities.

All of VCIB’s business decisions are guided by the Vancity Group’s four ethical principles:

1.  Accountable and sustainable business leadership that engages in co-operative principles and practices
2.  Economic and social inclusion for all people
3.  Strong and resilient communities
4.  Environmental and sustainability leadership

“Our four principles have been translated into policies that guide every aspect of our organization, from our lending and investing to our procurement practices,” explains Jennifer Hutcheon, VCIB’s Vice President.

“Unconventional doesn’t mean higher risk to us and that’s one of VCIB’s biggest differentiators; sometimes it requires more work to bring impactful projects to life and we’re willing to put in that extra effort.”

Our guiding principles in practice

An example of how we implement principles 1 and 2 is by supporting the preservation and development of affordable housing. VCIB provides specialized financing for housing co-operatives, affordable housing providers, land trusts, and other organizations that are working to make our communities more equitable and affordable.

For instance, VCIB’s financing supported Union Co-operative’s first property purchase – two apartment buildings in Kitchener, Ontario. This acquisition allowed the community co-operative to preserve 58 units of affordable homes. More recently, VCIB’s tailored support helped Phoenix Housing Co-operative refinance its mortgage.

We embody principles 3 and 4 through the implementation of VCIB’s climate finance solutions, which support a net zero transition. For example, VCIB supported the Six Nations of the Grand River Development Corporation’s clean energy portfolio by refinancing the Niagara Region Wind Farm.

The project’s profits will be directed back into the Six Nations community and will be used to stimulate economic opportunity, purchase critical infrastructure, and finance support services like mental health programs.

Our impact criteria and measurement process

In the financial sector, trust can only be achieved when banks are transparent about their lending activities and investments. To meet the Vancity Group’s high standards of transparency and accountability, we track, analyze, and report the impact of our financial activities in Vancity’s Annual Report.

When it comes to lending and investing, VCIB carefully considers the degree to which our financing will positively impact communities and the environment by applying a holistic assessment process.

When evaluating a business loan application, we look at the impact a project will have with respect to people and planet as well as the financial risks and returns. If the project aligns with our values, the financing application is reviewed against the Vancity Group’s Community Impact Transaction (CIT) Guidelines. If the application is for a clean energy project, it is also tested to fit within our Energy Policy.

As we’re evaluating each application, we consider the degree to which a loan may facilitate emissions reductions, provide benefits to underserved communities, or pioneer new business models to accelerate impact. To validate all impact claims, we complete thorough due diligence and collect relevant documentation. Finally, if the project meets our impact guidelines, the application can proceed through VCIB’s typical lending approval process, which includes an assessment of various credit risk factors prior to final adjudication of the application.

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Visit our website to learn more about VCIB’s products and services. If you’re a values-driven organization, or you’re looking to finance an impactful project, get in touch.

“We’ve been looking to expand our responsible investments in a way that directly benefits people in our community,” says Jacky Shen, director of SFU’s treasury department. “VCIB supports projects that align with our values and we’re proud to be the first Canadian university to invest with them.”

Universities and other institutional investors appreciate the Impact GIC as a safe and secure way to invest at competitive rates, while supporting transformational change in their communities and meeting the needs of their students and other stakeholders.

“Universities can be significant platforms for societal and environmental change, and they have the power and resources to create positive impact beyond the campus boundary,” notes Jennifer Hutcheon, Vice President at VCIB. “When responsible investors like SFU choose to invest with VCIB, they are choosing to support tangible, impact-driven projects that advance the change we need to see in the world.”

Vancity Community Investment Bank (VCIB) is part of the Vancity Group and a recognized leader in impact investing. With a 100% impact mandate, VCIB is the only bank in Canada that exclusively finances organizations and enterprises that drive social, economic and environmental change. This means that all projects must make a measurable contribution to building equitable and sustainable communities as a requirement for financing approval.

“Our impact lending requirements set a high threshold,” adds Hutcheon. “But when all loans are guaranteed ‘impact’, depositors are assured that their investments support only impact-driven projects. When you add the flexibility of the cashable option plus competitive returns, the Impact GIC is most definitely an attractive choice for institutional investors.”

The Impact GIC at work

With funds from Impact GICs, VCIB’s climate finance team supported the Six Nations of the Grand River Development Corporation’s clean energy portfolio by refinancing the Niagara Region Wind Farm, the second largest wind farm in Ontario. In British Columbia, VCIB financed an innovative residential retrofit project where geoexchange technology provides low-cost, clean and efficient heating and cooling for nearly 250 homes. More recently, VCIB financed an innovative partnership with Vancouver-based Seven Generation Capital to advance the electrification of Canada’s freight transportation sector.

A considerable amount of VCIB’s funds on deposit have been used to increase housing affordability across Canada. Examples include financing to support Habitat for Humanity’s development of 414 affordable housing units in the next three years, and Union Co-operative’s preservation of 58 affordable apartments in Ontario.

“There are many worthy projects VCIB has supported to date that are making a difference,” says Shen. “We’re eager to see what kind of impact our deposit can help make, while providing the university a healthy return on its investment.”

See a showcase of VCIB’s work in this Impact GIC video and learn more about Vancity Group’s work in impact banking at rethink.vancity.com.

The definition, developed by the European Commission, is the driving concept behind Venture for Canada’s mission: Fostering the entrepreneurial skills and mindsets of young Canadians with a vision of a prosperous, equitable, and sustainable future for Canada.

“Our training programs are a systemic drive for positive change. They are equipping our greatest national resource – our people – with the tools they need to create impact for themselves and their communities,” explained Scott Stirrett, Founder and CEO of Venture for Canada (VFC).

Through VFC’s programs, Canada’s youth develop essential entrepreneurial skills to tackle substantial challenges – such as climate change, income inequality, and reconciliation. Focused on providing real-world experience for recent graduates, and work-integrated learning experiences for students at startups and small businesses, VFC exposes young Canadians to what’s involved in building a business from the ground up.

Scott believes it is essential to incorporate their mission into every aspect of their organization, including their cash reserves.

“As a charity, we are committed to building a more innovative, resilient, and entrepreneurial Canada,” said Scott.

“The main way we achieve impact is through our programs, but it is also important that we do that through our accumulated surpluses – investing them to generate a strong return for the organization while leveraging those funds in a way that’s impactful and helps build that better Canada.”

Planting the seeds for impact investing

VFC took its first step toward impact investing with Vancity Community Investment Bank (VCIB). As part of the Vancity Group, VCIB is the only bank in Canada that works exclusively with organizations and businesses that drive social, economic, and environmental change.

“I was super impressed with the rate that VCIB could offer, as well as their specialized support. The fact that VCIB focuses on working with non-profits and social purpose enterprises, I felt like VCIB understood our needs. Most financial institutions don’t specialize in this specific area.”

To provide organizations with the ability to support transformational work in their communities while investing at competitive rates, VCIB created an innovative investment platform – the Impact GIC.

The deposits that go into the Impact GIC provide growth capital for purpose-driven businesses and help finance impactful projects in Canada like affordable housing and clean energy projects.

“We wanted to ensure that we invest our accumulative surpluses in a way that aligns with our values, and VCIB’s [Impact GIC] allowed us to generate strong returns while leveraging VFC’s financial resources to make Canada a better place,” continued Scott.

“[And] I genuinely really enjoy working with VCIB. Excellence in customer service is what we value, and they have an authentic passion for our work.”

The Impact GIC at work

The deposits in VCIB’s Impact GIC have financed a plethora of critical projects.

As a notable example, VCIB’s $30 million credit facility for Habitat for Humanity Canada will support the development of 414 affordable housing units over the next three years.

The first of Habitat’s projects was recently finished – a 41-unit condo built by Habitat for Humanity Peterborough & Kawartha Region. Located at Leahy’s Lane in Peterborough, Ontario, the new complex was unveiled on Sunday, April 3rd to welcome its expectant tenants.

In addition to affordable housing projects, VCIB’s Impact GIC is helping finance Canada’s transition to a net-zero future by supporting a vast array of clean energy projects.

For example, VCIB provided $3.81 million to refinance a residential geoexchange project in British Columbia that is currently providing heating and cooling for 246 residential properties.

Recently, VCIB also partnered with the Six Nations of the Grand River Development Corporation (SNGRDC), arranging a $32.5 million loan to refinance the Niagara Region Wind Farm, the second largest wind farm in Ontario.

The project’s profits will be directed back into the Six Nations community and will be used to stimulate economic opportunity, purchase critical infrastructure, and finance support services like mental health and suicide prevention programs.

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Click here to learn more about VCIB’s Impact GIC. If you’re interested in chatting with VCIB about your financing needs, get in touch.

“As healthcare providers, we need to address the issues that are affecting population health,” said Ethan Holtzer, Director at DMC. “And according to the World Health Organization, climate change is the biggest health threat facing humanity.”

DMC’s team believes it’s necessary to keep the climate emergency top of mind to ensure a livable and healthy future for the communities they support and the world around them.

In the early stages of DMC’s sustainability efforts, the organization took conscious steps to divert waste by reducing, reusing, and recycling as much as possible.

Then, DMC partnered with Bullfrog Power, an organization that offers high-impact renewable energy solutions for businesses. With their help, DMC ensured that their facilities “which use a large amount of energy” had zero-emission power systems.

DMC’s inspiring sustainability accomplishments stem from the organization’s long-term vision, a vision that was carried through from the organization’s inception: To model the future of healthcare.

Modeling the future of healthcare

DMC started as an out-of-province clinic back in the 1980s, when hospitals in the Toronto area didn’t have the capacity to provide dialysis care for patients travelling to the region.

“We were the first ones to provide dialysis in a community setting in the province, so we live by this thought: We might not be a large, influential healthcare organization, but if we can push the needle by innovating and being nimble, we can show where healthcare should be and influence the trends of our province and our system.”

To carry this vision through, DMC is constantly looking inwards to see what parts of the organization can be improved. And in this process of reflection, Ethan came across a pressing concern. According to the Intergovernmental Panel on Climate Change, countries must take immediate action to reduce the supply and demand of fossil fuels.

“As I became more aware of the business practices of our financial institution, I thought: How can we say we’re modeling the future of healthcare, one that is sustainable and net-zero, when we’re partnering with a bank that helps finance the climate crisis?”

This prompted Ethan to search for a bank where “we would be more comfortable investing our funding.”

Finding the right financing partner

In his search to find a financing partner that shared DMC’s values, Ethan came across Vancity Community Investment Bank (VCIB). As part of the Vancity Group, VCIB is the only bank in Canada that exclusively partners with organizations and businesses that drive positive change.

“Banking with an organization that invests in projects that improve the social well-being of our communities is important to us,” said Ethan.

“With VCIB, we knew that no matter how they use our funding, it will be aligned with what we stand for.”

DMC joined VCIB and is exploring investing in the bank’s Impact GIC – an investment platform for organizations that want to support transformational work in their communities while earning attractive rates.

Impact GIC deposits provide growth capital for purpose-driven businesses and help finance impactful projects in Canada like affordable housing and clean energy projects.

Financing one impactful project is great, but catalyzing change across industries is better

The deposits in VCIB’s Impact GIC have financed a wide variety of critical projects.

To tackle Canada’s affordable housing crisis, VCIB’s $30 million credit facility for Habitat for Humanity Canada will support the development of 414 affordable housing units over the next three years. In April 2022, the first of Habitat’s projects was unveiled – a 41-unit condominium located at Leahy’s Lane in Peterborough, Ontario.

VCIB’s Impact GIC is also accelerating Canada’s transition to a net-zero future by supporting first-of-their-kind clean energy projects. For example, VCIB financed the world’s largest energy transfer project, located at Toronto Western Hospital and operated by Noventa Energy Partners.

Over the next 30 years, Noventa’s wastewater energy transfer technology will supply 90% of the hospital’s heating and cooling needs and will reduce its carbon emissions by a quarter of a million tonnes.

Recently, VCIB also partnered with the Six Nations of the Grand River Development Corporation (SNGRDC) to refinance the second-largest wind farm in Ontario. The project’s profits will be directed back into the Six Nations community to stimulate economic growth, purchase critical infrastructure, and finance support services like mental health and suicide prevention programs.

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Click here to learn more about VCIB’s Impact GIC. If you’re interested in chatting with VCIB about your financing needs, get in touch.

“I believe much more capital needs to be directed towards supporting the growth of purpose-led organizations,” Yugai says. “And with VCIB, I saw the opportunity to do this on a much larger scale, through impact investment products for institutional investors.”

Yugai’s career first took off with work in tech, supporting companies to scale. But though she was excited to witness the growth, she wanted something more — the chance to use her skills to support mission-driven organizations.

For a half-decade, Yugai held a dizzying array of paid and volunteer roles in Vancouver, helping social enterprises access new funds and guiding impact investors toward values-aligned investment opportunities.

In 2017, she took a role as the investment manager with a family investment office, which opened a whole new path for impact. Through her position, she managed a portfolio of fifteen social enterprises and led the firm’s advisory practice, helping other impact investors connect with local social enterprises.

“Every investor can have a positive influence on our society and our planet,” she says. “But when it comes to finding impact investment options, new and aspiring impact investors don’t know where to start.”

Alongside her advisory work, Yugai helped grow the pool of local, investment-ready social enterprises. She mentored, advised, and coached, supporting the growth of dozens of ventures. She also helped launch the National Social Value Fund, a student-led impact investing fund that has raised over $800,000 and grown to seven chapters across Canada.

At each turn, her work has been about growing both sides of the market: helping social enterprises get investment-ready and helping investors find the investments that truly fit their values.

Today, Yugai has that same mission — but now on a bigger scale, supporting connections between impact investors and purpose-driven social enterprises through products like VCIB’s Impact GIC. This straightforward investment option contributes to affordable and sustainable communities across Canada.

“The Impact GIC is one of the fastest and easiest ways for organizations to invest with impact,” says Yugai. “Before reimagining their investment policies, wrapping their heads around risk, or determining how to invest for impact in capital markets, they can invest in the GIC and know their funds are providing growth capital for affordable housing projects, clean energy innovations, and mission-led organizations.”

It was partly the turn-key nature of the Impact GIC that drew an investment from the Primate’s World Relief and Development Fund (PWRDF), the Anglican Church of Canada’s agency for sustainable development and relief.

“Public markets have taught us a lesson: they go up and down,” says Dan Waterston, board treasurer of PWRDF. “As a responsible investor, you should have a portion of your portfolio that’s not equity. VCIB’s Impact GIC is a great fixed income product that combines strong social impact with a competitive financial return.”

In addition to the ease of investment, the definitive impact draws investors too. “Rather than letting the funds sit in your chequing or savings account, earning almost no interest, you can place them in an Impact GIC, knowing that they’re creating extraordinary impact in your own community,” says Yugai.

“The best investment is place-based,” she says, recalling her work to support social enterprises in Vancouver. “I keep cultivating my connections across the country because I want to be ready to be nimble when opportunities come up to support other communities.”

Click here to learn more about VCIB’s Impact GIC. Ready to invest in change? Let’s talk.

Nonetheless, the world is changing, and investors are looking for more than just secure investments with high interest rates.

With the climate crisis accelerating, organizations are becoming mindful to avoid investing with financial institutions that support fossil fuel extraction. Many investors want a responsible and sustainable investment vehicle that aligns with their values, one that combines social and environmental impact with competitive financial returns.

Fortunately, Vancity Community Investment Bank – Canada’s only values-based bank – offers a solution for purpose-driven businesses and non-profit organizations: the Impact GIC.

What is an Impact GIC?

VCIB’s Impact GIC gives organizations the ability to support transformational work in their communities, while investing at competitive rates. When you invest in the Impact GIC, your deposits provide growth capital for purpose-driven businesses and help finance impactful projects in Canada like clean energy and affordable housing projects.

The Impact GIC is a low-risk investment that offers both non-redeemable and cashable options for short-term and long-term horizons.

Financing a better tomorrow with Impact GICs

For years, the Anishnawbe Health Foundation (AHF) had been raising funds to build the first a state-of-the-art Indigenous health centre in Toronto. In 2019, with fundraising well underway, AHF recognized the need to identify suitable investments to allow their fundraised dollars to keep growing while the project plans continued to take shape.

The foundation was already familiar with VCIB’s values-driven financing and, after comparing products across several financial institutions, AHF decided to invest in the Impact GIC.

“Securing a good rate to support the Health Centre and grow our fundraised dollars was our first priority — and it was added value for us that VCIB’s Impact GICs do good in the community too,” said Julie Cookson, Executive Director at AHF.

For the Primate’s World Relief and Development Fund (PWRDF), it was important to have reserve funds in place. Recognizing the power of their investments, the board of directors decided to focus on impact, committing to investing a portion of their funds into impact investments.

“Banking is a heavily regulated industry, and it gave us confidence to know that VCIB is a [Schedule I] reputable financial institution,” explained Dan Waterston, Board Treasurer of PWRDF.

“VCIB’s Impact GIC is a great fixed income product that combines strong social impact with a competitive financial return.”

The Impact GIC at work

Impact GIC deposits have financed projects serving diverse communities – from supportive housing for women and gender-diverse people at risk of being homeless, to community hubs for charities and non-profits.

A considerable amount of deposit funds have also been used to increase affordable housing options across Canada. For example, VCIB’s $30 million credit facility will support the development of 414 affordable housing units through local Habitat for Humanity organizations.

With help from the Impact GICs, VCIB’s clean energy team supported the Six Nations of the Grand River Development Corporation’s clean energy portfolio by refinancing the Niagara Region Wind Farm, the second largest wind farm in Ontario. More recently, VCIB’s $3.81 million financing for a residential geoexchange project is currently providing heating and cooling for 246 residential properties in British Columbia.

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Click here to learn more about VCIB’s Impact GIC. Ready to invest in change? Let’s talk.

In the early 2010s, Nixon worked with some of the leaders of the nascent Canadian movement, professionals who talked about building a different sort of capitalism, developing new impact investing products, and growing the pool of capital available for purpose-driven businesses, affordable housing, and clean energy projects. Essentially, they wanted to build a financial system that worked for people and the planet.

But she got blank stares when she went outside her immediate professional circles with ideas about how banking and investing could be organized to cycle benefits back into the community.

“Colleagues and friends had no idea or understanding there was a space between business and philanthropy,” she says.

A decade later, it’s very different.

Today, Nixon heads up the commercial impact banking practice for Vancity Community Investment Bank (VCIB) — a job that has her rubbing shoulders with real estate developers, institutional investors, affordable housing providers, and government partners.

“Nobody’s asking the question, ‘Is this relevant?’ anymore,” she says. Instead, there’s a recognition of the need for an ‘all hands on deck’ approach to address our greatest challenges. Banks, investors, and asset owners, along with private and public companies, are increasingly striving to be part of the solution. Along with the climate crisis, nowhere is this need and opportunity more obvious than in the push to create more affordable housing across the country.

In her first real estate deal with VCIB, Nixon worked with the Parkdale Neighborhood Land Trust (PNLT) and a group of impact investors to structure a financing solution that meant they were ready to nab properties that create more affordable housing in the rapidly-gentrifying west Toronto neighborhood. Last spring, this preparation paid off, allowing PNLT to efficiently secure a 36-unit apartment building that was at risk of being snapped up by a private developer and converted into higher-cost housing.

That same creativity and drive was present, Nixon says, in her team’s work with Habitat for Humanity Canada—a longstanding advocate for safe and affordable housing. The partnership provided Habitat Canada with a $30 million credit facility that enables local Habitat organizations to access capital quickly and easily. Over the next three years, this financing will drive the construction of up to 414 new affordable housing units across the country.

In addition to partnering with non-profits, VCIB is increasingly finding alignment with private developers committed to integrating impact goals into their projects. Dream, who prioritize sustainability and community benefit in many of their developments, is a great example.

A decade in, the impact banking professional says she’s glad to be working with Canada’s first and only impact-driven bank and the broader Vancity Group—a financial institution that was pushing for affordable, sustainable communities before it was cool, too.

Learn more about impact financing at VCIB and, if you’re interested in chatting with VCIB about your financing needs, get in touch.

Early on, Dream – now one of Canada’s leading for-profit real estate companies – came across an answer.

Tenants showed a desire for high-quality office spaces, and Dream realized they could meet this need by offering sustainable spaces that contribute to tenants’ health and wellness. By proactively investing in spaces with these qualities, Dream discovered their assets were in higher demand, had lower operating costs, and consistently generated strong financial returns, all while building better communities for their tenants, customers, and stakeholders.

“We have always focused on great design and community building. Sustainability creates superior assets and helps people in our communities lead better lives,” said Jamie Cooper, Portfolio Manager of the Dream Impact Fund. “When you invest in the sustainability of a building, you’re extending its life cycle and decreasing your operating expenses.”

From the very beginning, Dream’s business model was built on the notion that the real estate industry has a big part to play in “making the change that we want to see in our communities” explained Cooper.

But after the COVID-19 pandemic hit, highlighting the depth of the inequities in our society, Dream realized it needed to take its impact standards to a new level.

A major sustainability milestone

In the fall of 2020, Dream became a pioneer in Canada’s real estate industry by becoming the first Canadian real estate company to formally implement and measure an impact framework.

“The pandemic shed a light on Canada’s already existing social inequalities,” said Cooper. “Plus, not long ago, in 2019, the IFC’s Operating Principles for Impact Management were published. This provided a method for evaluating impact investing as an asset class and it was a game changer – these events prompted us to think about creating our own impact framework.”

Right after implementing their impact measurement framework, the Dream Hard Asset Alternatives Trust changed its name to ‘Dream Impact Trust’, turning its focus to impact investing.

In 2021, with financing from Vancity Community Investment Bank (VCIB), Dream made its first acquisition under its dedicated impact investing approach – a building located at 68-70 Claremont Street in Toronto’s trendy Queen West neighborhood.

Partnerships with purpose

Securing a financing partner that shared Dream’s vision for sustainable real estate was of paramount importance for Jamie Cooper and his team.

Motivated by Dream’s mission and impact journey, VCIB provided a $14,500,000 loan to assist in the acquisition and renovations of the Claremont building.

“The Claremont Project is a very meaningful property for us. It was the very first building that we bought under our new impact lens, so for us to have been able to partner with VCIB was extremely helpful,” said Cooper. “This is the impact bank. VCIB understood the value created by the remediation work that we’re doing in the building, and I think that was really wonderful.”

The Claremont Project

“We have a big vision for this building,” said Cooper. “We’re planning to offer a curated ecosystem of amenities and services that promote health and well-being in the community. Ramps will be installed to improve the building’s accessibility and we’re going to increase the water efficiency by replacing existing water fixtures with high-efficiency, low-flow fixtures.”

In addition, to increase the energy efficiency of the building and reduce greenhouse gas emissions, Dream will upgrade its HVAC system and windows, and install LED lighting.

For Dream, the tenants play an important role in managing the sustainability performance of their assets. “We want to create a very sustainable building and we’re hoping to attract tenants that value that,” continued Cooper. “Like-minded tenants can potentially help us achieve more than we otherwise could.” Dream engages its tenants through training and feedback sessions focused on increasing tenant awareness of sustainability issues.

Old partnerships, new vision

Dream’s partnership with VCIB didn’t stop there.

When Dream joined forces with BlackTusk – a Toronto-based and minority-owned real estate asset management firm – VCIB provided their joint venture with the financing needed to acquire a three-storey building located at 34 Madison Avenue, Toronto. This quaint old building is the future site of a Montessori school.

“It’s a beautiful building but it needs a lot of capital to reposition it and make it relevant,” said Cooper. “And we’re happy to have partnered with BlackTusk – this makes the project have double the impact as we see this as an opportunity to help grow their real estate private equity group while creating a school in Toronto.”

VCIB’s financing will also cover the renovations needed to create a high-quality learning centre. In keeping with Dream and BlackTusk’s building restoration policies, the property renovations will respect the essence and history of Toronto’s Annex neighborhood, where it’s located.

The Claremont Street and Madison Avenue projects illustrate Dream’s approach to impact investing and demonstrate that sustainability, community interests, and profit need not be at odds with each other. Across Canada, Dream is developing buildings that serve the community, embody a sense of place, and meet business objectives – without compromise.

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As Canada’s only values-based bank, VCIB provides construction, term, and acquisition financing for commercial real estate projects that drive lasting positive change in our communities. Learn more about VCIB’s social purpose real estate financing in our website. If interested in chatting with VCIB about your financing needs, get in touch.

Click here to learn more about Dream’s sustainable approach to real estate development.

“We are going to be there for you,” was the message Tonya Surman and the Centre for Social Innovation (CSI) received when the pandemic first hit, and she was faced with the prospect of closing her doors for the first time ever, to the hundreds of organizations that count on CSI.

On the other end of the line was the CEO of Vancity Community Investment Bank (VCIB), Jay-Ann Gilfoy, who called to see how she could help keep CSI running and serving its members as the reality of COVID-19 sunk in. A year later, Surman — the CEO of CSI — credits VCIB, a subsidiary of Vancity Credit Union, for helping her navigate the tumultuous waters of operating a business during a pandemic.

CSI plays an important role within the world of innovative non-profits and social enterprises in Toronto. It provides shared workspaces, programming and education, as well as networking and mentoring to more than 900 social-purpose organizations. In short, CSI works with organizations passionate about changing the world for the better. Which is why it was more important than ever to stay strong during the pandemic.

When it comes to non-profits and charities, the cards are often already stacked against them, says Surman. When she first launched in 2004, she couldn’t even find a bank that would open an account for her. “The leadership from one of the Big Five banks told me point blank, ‘We don’t want to foreclose on a charity, it would be terrible PR.’ And that’s the truth. They don’t know who we are, how we operate, all they perceive is that we look risky.”

But VCIB has supported CSI from the beginning, says Surman. They not only understand the non-profit sector, but have made it a mandate to support social enterprises in ways other financial institutions don’t. For Surman, that promise didn’t stop when COVID-19 ground businesses to a halt last March.

“Here we are, we have two mortgages with VCIB on our buildings, the pandemic hits, and we have to close our doors to flatten the curve,” says Surman. “All of a sudden, 9 per cent of our members have closed up shop permanently. I’m scared. VCIB, in the face of this global pandemic calls (and asks): ‘Tonya, how are you doing? Are you okay? What can we do to help you and CSI get through this?’”

“We work (together) on a new financial relationship, which then enables me to create a community rent pool and offer it to our hundreds of member organizations. We’ve been able to continue to offer services to our members (in ways) we wouldn’t have been able to if VCIB hadn’t been there. Not foreclosing on us, but checking in and actively problem solving with us!”

“That’s partnership,” says Surman. “This pandemic has proven VCIB has our back, and I could not be more grateful.”

Trish Nixon, VCIB’s managing director of Commercial Impact Banking, says helping partners find solutions to remain operational during the pandemic was a priority, given their mandate as a values-based bank whose aim is to empower organizations that exist to drive positive change.

“Non-profits and social enterprises are by design and definition purpose-driven. We intentionally focus on understanding and financing these organizations because there’s a very clear path to us meeting our own impact objectives,” says Nixon.

Even outside of the pandemic context, these organizations often face difficulties accessing capital and financial services. And not just the big-ticket items like mortgages, but day-to-day products like credit cards and lines of credit too. By designing solutions that meet the needs of charities and non-profits, as well as purpose-driven businesses, VCIB is addressing a market that is often underserved by financial institutions.

“There’s a ripple effect when organizations with shared values and goals work together,” Nixon says. “CSI is a great example of that. They support so many other social enterprises and are exactly the kind of partner we want to help fuel, whether that’s through mortgage financing for their buildings or operating accounts and credit cards. By supporting them, we’re also supporting all of the changemakers they serve.”

For her part, Surman says she is eternally grateful for the partnership VCIB has provided to CSI, and by extension, all the organizations CSI supports.

“We’re building the next economy,” she says. “Especially now, with COVID, there’s a recognition that we need an economy that actually puts people and planet first. It’s going to take leaders that can craft the really meaningful solutions. To be walking side-by-side with other leaders who have the same vision to make a better world … I’m just really proud. It makes me really grateful to have the privilege to serve with so many extraordinary people.”

Learn more about VCIB’s impact financing in our Business Banking page. If interested in chatting with VCIB about your financing needs, get in touch.

Disclaimer: The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.

Create positive change. That’s the simple idea behind Vancity Community Investment Bank, and one that’s particularly important now as affordable housing, economic inequality and the climate crisis impacts people from coast-to-coast.

It’s known as values-based banking — the concept that financial institutions should serve their communities through supporting social, environmental and economic sustainability initiatives. In fact, many Canadians are showing increasing interest in the values of the banks with which they do business, says Jay-Ann Gilfoy, CEO of Vancity Community Investment Bank (VCIB). “They’re saying, ‘If I’m going to give you my money, I need to know you are doing something meaningful with it.’”

And that, says Gilfoy, is exactly what VCIB aims to do. “We’re part of an international group of banks called the Global Alliance for Banking on Values, and all of us share a common set of principles,” Gilfoy says. “One is the idea that, in banking, you should prioritize lending money to the people and organizations that most need it.”

A nationally-focused subsidiary of BC-based Vancity Credit Union, VCIB works exclusively with organizations that drive social, environmental and economic change, and its suite of banking, investing and financing solutions are purpose-built to help these companies thrive, and enable their impact. It’s partnered with affordable housing developers like Options for Homes, and recently announced strategic partnerships with both the Canadian Mortgage and Housing Corporation and Habitat for Humanity Canada.

VCIB also connects clean energy developers, installers and building owners with financing to get their clean energy and energy efficiency projects off the ground. Through their subsidiary, CoPower, they’ve made loans to new clean energy and energy conservation projects that include solar, geo-exchange and building retrofits.

“We are equally passionate about the projects (our partners) are working on, in the sense (that) when they succeed, we succeed, both financially and in terms of our impact objectives,” says Gilfoy. “We bring other people to the table if you need more than just a loan, (and) amplify your story for you.”

One such story is that of Forum Equity Partners, a Canadian-based private investor, developer and asset manager of real assets across North America, that’s committed to projects that spur environmental and social change.

Forum is developing a portfolio of co-operative living projects in cities across Canada to help provide a solution to the affordable housing crisis, including one such planned development in Ottawa, according to Aly Damji, a partner at Forum.

“The project was purchased through a court process and had a short window period to close,” says Damji. “While co-living is still in its infancy in Canada and therefore new to many lenders, VCIB stepped up to the plate on a short timeline and supported us with a loan to acquire the property.”

“Lenders are typically conservative, and many are not familiar with co-living,” he adds. “And VCIB said, ‘We really believe in this. Part of our mission is to create more affordable living in the marketplace.’”

VCIB — through its subsidiary, CoPower — has also provided Forum with a flexible credit facility to finance the construction of geothermal infrastructure throughout residential projects across the Greater Toronto Area.

“VCIB (has) been able to bridge a lot of relationships in sustainable building,” says Damji. “The relationship goes above and beyond just a lending relationship. We have a partner who will be there as a sounding board as we grow.”

“We at Forum have great aspirations of growing our impact-driven investment business in a variety of sectors,” adds Damji. “We treat our lending and banking-based relationships as our partners. VCIB is and has been a leader in impact-based lending for some time, and its vision and mission align with how we operate as an organization. … We take great comfort in knowing that we have a strategic partner that we are closely aligned with on delivering not only extraordinary financial performance, but also positive environmental and social outcomes.”

At the end of the day, VCIB measures its success not only by profit, but by how it’s able to provide financial solutions that put its partners’ values first, strengthen communities and help the planet.

“It’s important, because all of us — in this space of trying to solve these big problems — we all want to advance the solutions we have today, and the only way to do that is to form partnerships,” says Gilfoy.

“Expect to see a lot more of VCIB in the clean energy space, amplifying the affordability issues, and supporting businesses to build back better post-pandemic,” Gilfoy says. “We really want to be attracting change-makers … expanding our network and reaching organizations who want to work with a bank that cares about the impact they’re driving.”

Learn more about VCIB’s impact financing in our Partners page. If interested in chatting with VCIB about your financing needs, get in touch.

Disclaimer: The information provided herein is intended for informational purposes only and is not intended to constitute investment, financial, legal, accounting, tax, or other advice and should not be relied upon for such purpose. Always consult a professional regarding your specific needs and circumstances. Customer results may vary. The customer endorsements that appear on this page were solicited by VCIB.