In this lesson from Yale's Creating Change through Social Entrepreneurship course, students trace the historical evolution of social impact funding, examining how the field has moved from a traditional charity model toward approaches that resemble investment, including grants structured with expectations of measurable return and impact investing vehicles. The lecture bridges the historical divide between nonprofit philanthropy and for profit investment to explain how hybrid funding models emerged. Building on the prior lesson's survey of funding sources, this lesson gives students historical context for why the current, more varied financing landscape for social enterprises developed the way it did.