Perpetual Social Capital
PSC
A funding model where capital cycles indefinitely without interest or debt, creating compound impact from every dollar deployed.
What is Perpetual Social Capital?
Perpetual Social Capital (PSC) is a funding model where capital cycles indefinitely without interest or debt. Instead of a donated dollar being spent once, PSC beneficiaries pay forward 85-95% to the next recipient. With an 85% recycling rate, $100,000 creates $667,000 in total system value—a 6.67× multiplier.
The Problem PSC Solves
Traditional Grants
$100K spent once = $100K impact. Capital consumed, requiring constant fundraising.
Loans
Creates debt obligations that strain recipients and extract value through interest.
Equity
Requires returns that often conflict with mission, leading to drift.
PSC creates a fourth option: capital that strengthens systems rather than extracting from them.
How PSC Works
- 1
Capital deployed
Initial capital flows to the first beneficiary
- 2
Value created
Beneficiary uses capital to create value (education, housing, business)
- 3
Pay forward
When able, beneficiary pays forward 85-95% to the next recipient
- 4
Cycle repeats
Next beneficiary receives capital, uses it, pays forward
- 5
Corpus preserved
Capital cycles indefinitely, creating compound impact
Key Numbers
6.67×
Impact multiplier at 85% recycling
$667K
Total value from $100K initial
85-95%
Typical pay-forward rate
0%
Interest charged
Where PSC Applies
PSC Calculator
Model different recycling rates and scenarios
Full Explainer
Deep dive into PSC theory and mathematics