{"id":56842,"date":"2020-02-04T16:11:00","date_gmt":"2020-02-04T15:11:00","guid":{"rendered":"https:\/\/cms.munich-startup.net\/?p=56842"},"modified":"2024-04-24T09:47:16","modified_gmt":"2024-04-24T07:47:16","slug":"social-impact-funds","status":"publish","type":"post","link":"https:\/\/cms.munich-startup.net\/en\/56842\/social-impact-funds\/","title":{"rendered":"Social Impact Fund: \u201cFinally using \u2018dead\u2019 capital\u201d"},"content":{"rendered":"
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In order to establish a Social Impact Fund, the Social Entrepreneurship Network Germany (SEND) a reform <\/a>proposed. To this end, so-called dormant assets are to be used to finance companies with social added value.<\/strong> Now there is news. <\/strong><\/p>\n\n\n\n

Since innovative solutions to societal challenges such as climate change, an aging society, or structural change brought about by digital transformation often struggle to obtain appropriate financing, a reform proposal has been initiated. Dormant assets could be channeled into a social impact fund.<\/p>\n\n\n\n

Use up to 9 billion euros of assets for society<\/h2>\n\n\n\n

Dormant assets are assets with which financial institutions have lost contact with customers. This usually happens when someone moves or changes their name before their death without reporting it. In Germany, the value of these assets is estimated at between \u20ac2 billion and \u20ac9 billion. Germany is the only country in the G7 that does not have legal regulations governing what happens to these assets. <\/p>\n\n\n\n

The next steps<\/h2>\n\n\n\n

What has happened since October? The reform proposal has now been included in the High-Tech Forum's discussion paper on social innovations as a possible source of funding for social innovations. Furthermore, a press release from the governing parties on the upcoming coalition proposal for greater support for social entrepreneurship has taken up the proposal. <\/p>\n\n\n\n

"We are pleased that our proposal to establish a Social Impact Fund through dormant assets is receiving so much cross-party support. Now it's up to politicians to move from talk to action and finally put this 'dead capital' to work for society," <\/p><\/blockquote>\n\n\n\n

explained Markus Sauerhammer, <\/strong>Board of SEND, in response to a request from Munich Startup. <\/p>\n\n\n\n

How do other countries deal with this social investment capital?<\/h2>\n\n\n\n

Other countries use these funds for the common good. For example, Japan uses them to finance solutions to the challenges of an aging society. In Great Britain, banks transfer these assets to a 'reclaim fund'. If the money is not claimed by the heirs, a semi-public fund of funds for social investment capital benefits. The advantage: Such models create added value for society\u2014and do not burden taxpayers. <\/p>\n\n\n\n

Curious? SEND has also provided an update on the concept in a video:<\/p>\n\n\n\n

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