Perpetual Social Capital (PSC)

Definition

A fourth capital class alongside debt, equity, and grants. PSC is characterized by zero interest, no liability on beneficiary balance sheets, soft repayment obligations, and capital recycling.

Example

A $100,000 PSC deployment to fund scholarships. Graduates are encouraged (but not obligated) to pay forward when financially able, recycling capital for future students.

Source

PSC Section 2.1

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Related Terms from Perpetual Social Capital

R Factor (Recycling Rate)R

System Value Multiplier (SVM)SVM

Total System Value (TSV)TSV

System IRRSystem IRR

Cycle Durationτ (tau)

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Perpetual Social Capital