Social entrepreneurs seeking growth funding often get caught up in the culture of venture capital -- they position their enterprise as a rocket business, look for a miracle angel investor, and start giving away equity.
The idea is that by subsidizing charitable donations, we as a society are getting greater positive social impact than we otherwise would. It's logical to ask, "How can we get the most positive social impact for our money?"
Whether we like it or not, government is an increasingly central player in social and environmental markets. After all, there is a clear public interest in the positive benefits impact investing can bring.