Day 4

Models of Social Impact
Mohamad Saad (PhD.)

Agenda
• Social Impact Models
• Donation model - Social hiring
• Capacity building - Resource Provision
• Social procurement - Selling Socially Conscious Products
• Social marketing - Systemic change
• Social movement - Social Finance Services or Products

Social Impact
• Social enterprises may have one or more social impact model(s) that guide the
activities they engage in to create positive social change

Social Impact
• A social impact model is a strategy or model that a social enterprise uses to solve
or address a social problem.

Donation Model
• This model focuses on donating financial, time, or physical resources to people in
need or organizations that help disadvantaged people and communities.

Donation Model
• This model is relatively easy to get started. This ease is likely why it’s so popular.
• Entrepreneurs use the donation model by donating profits or products to people
or communities in need or the organizations that support them.

Donation Model
• These donations can be continuous or occasional. Entrepreneurs who use this
model often are not directly involved with the cause or charitable activity, leaving
them time to focus on running their organizations. As such, it may be a great
starting point for social entrepreneurial activity.

Social Hiring
• Social hiring is intentionally hiring people who face challenges to obtaining
employment such as people who are formerly prisoned, homeless, the mentally
or physically disabled, people who have low educational attainment, and
undocumented workers
Social Hiring
Research has found that social hiring can:
– Reduce the re-entry rate of people who were formerly prisoned
– Reduce substance abuse
– Reduce reliance on public assistance
– Help beneficiaries obtain and sustain housing

Capability Building/Training
• Capacity building involves giving impoverished people, communities, or
organizations the tools and skills that enable them to help themselves.
Capability Building/Training
• Social entrepreneurs who use this technique emphasize creating “- self-help”
opportunities for their beneficiaries, essentially offering skills and opportunities
to help themselves today and in the long-run (e.g. employment opportunities,
specialized educational training).

Social Service or Resource Provision
• Resource provision is the offering of goods, services, or resources that may help
beneficiaries combat social issues or meet their needs.
• Social enterprises provide resources (e.g., medical supplies) for free or at an
affordable cost to their beneficiaries.

Social Procurement
• Social procurement is the acquisition of a range of assets and services, with the
aim of intentionally creating social outcomes (both directly and indirectly).

Social Procurement
• It involves people, organizations, and governments “buying good” from
organizations that employ people with difficulties.
• Their work has led to millions of dollars in contracts related to “buying social.”
Selling Socially Conscious Products or Services
• Goods or services that are themselves a benefit to the person using them or that
help alleviate a social problem.
• Examples of such goods or services include organic foods, upcycling services that
reduce waste and pollution. Many of these goods require educating social
enterprise consumers and beneficiaries on what makes these products or services
beneficial.
Social Marketing
• Advertising techniques or campaigns that aim to spread awareness about social
problems and/or ways to address social issues.
• Some social enterprises aim to combat these issues by directly creating marketing
campaigns and informational workshops that aim to educate and inspire others
to take action.
Systemic Change
• Systemic change involves advocating or working with governing institutions
and/or elites in an effort to change the social systems that govern society.
• It can encompass developing new organizations, planned communities, or even
working to develop new public policies that foster community-wide changes.

Systemic Change
• Social enterprises using a model of systemic change recognize the importance of
building relationships and form initiatives with people in powerful positions
related to the main issues they seek to combat.

Systemic Change
• This model is particularly appropriate for addressing deep-rooted issues like
racism, poverty, criminal justice, and environmental degradation.

Social Movement
• Developing a social movement consists of group action that aims to advance
social change regarding one or more social issues by changing people’s habits,
thinking, or lifestyle.
Social Finance Services or Products
• Social finance services and products are goods, services, or initiatives that aim to
improve economic self-sufficiency or attend to the financial challenges of
disadvantaged groups or people

Social Finance Services or Products
• It includes initiatives such as developing microfinance organizations,
crowdsourcing the financing of social organizations or programs, and awarding
restricted grants for marginalized communities.

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Models of Social Impact

Mohamad Saad (PhD.)

• Donation model - Social hiring

• Capacity building - Resource Provision

• Social procurement - Selling Socially Conscious Products

• Social marketing - Systemic change

• Social movement - Social Finance Services or Products

activities they engage in to create positive social change

or address a social problem.

• This model focuses on donating financial, time, or physical resources to people in

need or organizations that help disadvantaged people and communities.

• Entrepreneurs use the donation model by donating profits or products to people

or communities in need or the organizations that support them.

• These donations can be continuous or occasional. Entrepreneurs who use this

them time to focus on running their organizations. As such, it may be a great

starting point for social entrepreneurial activity.

• Social hiring is intentionally hiring people who face challenges to obtaining

or physically disabled, people who have low educational attainment, and

Research has found that social hiring can:

– Reduce the re-entry rate of people who were formerly prisoned

– Reduce substance abuse

– Reduce reliance on public assistance

– Help beneficiaries obtain and sustain housing

• Capacity building involves giving impoverished people, communities, or

• Social entrepreneurs who use this technique emphasize creating “- self-help”

opportunities for their beneficiaries, essentially offering skills and opportunities

to help themselves today and in the long-run (e.g. employment opportunities,

specialized educational training).

beneficiaries combat social issues or meet their needs.

• Social enterprises provide resources (e.g., medical supplies) for free or at an

affordable cost to their beneficiaries.

aim of intentionally creating social outcomes (both directly and indirectly).

• It involves people, organizations, and governments “buying good” from

organizations that employ people with difficulties.

help alleviate a social problem.

enterprise consumers and beneficiaries on what makes these products or services

• Advertising techniques or campaigns that aim to spread awareness about social

problems and/or ways to address social issues.

• Systemic change involves advocating or working with governing institutions

• It can encompass developing new organizations, planned communities, or even

working to develop new public policies that foster community-wide changes.

• Social enterprises using a model of systemic change recognize the importance of

building relationships and form initiatives with people in powerful positions

related to the main issues they seek to combat.

• This model is particularly appropriate for addressing deep-rooted issues like

racism, poverty, criminal justice, and environmental degradation.

• Developing a social movement consists of group action that aims to advance

improve economic self-sufficiency or attend to the financial challenges of

disadvantaged groups or people

• It includes initiatives such as developing microfinance organizations,

crowdsourcing the financing of social organizations or programs, and awarding

restricted grants for marginalized communities.

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