Loading...
Loading...
Verify if a capital system satisfies RCA's six invariants
Answer the questions below to assess whether a capital structure satisfies the six structural invariants required for regenerative behaviour. A system must satisfy all six invariants to qualify as fully regenerative under RCA theory.
Capital does not extract value from the system it serves. No interest, no profit requirements.
Does the capital structure require interest payments?
Are there mandatory dividend or profit distributions?
Does success depend on extracting value from beneficiaries?
Capital creates no legal obligation to repay. Recipients are partners, not debtors.
Can recipients be sued for non-repayment?
Are there collateral requirements or personal guarantees?
Is the relationship framed as gift/pay-forward rather than loan?
Capital is designed to flow through multiple recipients over time, not terminate with single use.
Is there a mechanism for capital to return to the system?
Can the same capital help multiple beneficiaries over time?
Is there a defined recycling rate (R factor)?
Capital deployment matches the temporal requirements of the mission, not external cycles.
Are funding commitments aligned with project timelines?
Is the capital protected from political or fiscal cycles?
Can multi-year projects receive multi-year commitments?
Decision-making authority is distributed. No single actor can unilaterally control capital.
Do beneficiaries have voice in governance?
Are there checks on donor or administrator power?
Can a single election or appointment change capital policy?
The system grows stronger over time. Each cycle leaves the system more capable than before.
Does the System Value Multiplier exceed 1.0?
Do recipients retain assets after the capital cycle?
Is there evidence of increasing institutional capacity over time?