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SOCIAL INVESTMENT 28 January 2014 . Definition . Social investment is any investment activity which has an expectation of both a specified social outcome and an explicit financial return (usually below “market-rate”).

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28 January 2014


Social investment is any investment activity which has an expectation of both a specified social outcome and an explicit financial return (usually below “market-rate”).

Main difference with traditional types of grant funding is that there is generally an expectation of repayment!

NAVCA – February 2012

types of social investment
Types Of Social Investment
  • Loan Finance
  • Equity Investment/Revenue Participation
  • Community Share Schemes
  • Social Impact Bonds
  • Charity Bonds
investment appraisal
Investment Appraisal
  • Background information on the

Trustees and Management team

  • Business Plan – 3 years forward
  • Risk Analysis, including contingency planning
  • Past 3 years annual accounts & annual reports
  • Financial projections
assessing loan applications
Assessing loan applications
  • Nature of the project
  • Who benefits
  • Ability to service borrowing
  • Quality of the applicant/key staff/governance
possible uses for a loan
Possible Uses For A Loan
  • Buying a building
  • Working capital
  • Buying equipment
  • Starting new projects
  • ‘Last Brick’ Funding
  • Refurbishing premises
  • Rescue Packages
benefits of loan finance
Benefits of loan finance
  • Enables a project to be delivered mmediately
  • Can avoid potential increases in costs
  • Lending against pledges/retrospective grants
  • Independence
  • Comes without strings attached
  • Leverage Match Funding
case study 1
Case Study 1
  • Leeds Action To Create Homes (LATCH)
  • Est in 1989 - works with homeless people and volunteers bringing disused and derelict properties back into use.
  • £50k loan agreed to refurbish x2 properties.
  • Income from properties used to fund loan repayments.
case study 2
Case Study 2
  • Foresight (North East Lincolnshire) Limited operates throughout North to meet the needs and requirements of disabled people, their families and carers.
  • Charity Bank approved a £300k loan to help purchase and renovate an empty care home into 30 flats for young disabled people.
point blank theatre company
Point Blank Theatre Company

A creative arts organisation

based in Sheffield, it provides

opportunities for artists, offers

performance classes and

reaches out to disadvantaged

people in marginalised

neighbourhoods. It borrowed

£150,000 towards purchase of a

new building in order to expand

and rely less on grants by

becoming more self-sufficient.

Point Blank Theatre, Jon Maiden

“Partly as a result of the credit

crunch, we had hit a lot of brick

walls with other lenders prior to

getting involved with Charity

Bank. We wouldn’t be where we

are now without their faith in

our project.”

bring it on
Bring It On?
  • New source of capital in market where grants are increasingly difficult to obtain.
  • But…it needs to be repaid.
  • Mission driven?
  • Consider the risks!
what is charity bank
What is Charity Bank?
  • A Bank that is also a Charity
  • Our mission is to transform

the future of charities

and social businesses

charity bank key facts
Charity Bank – Key Facts
  • Specialist Lender to Social Enterprise Mkt.
  • Loans £50k - £2m
  • Secured & Unsecured
  • Rates between 5% & 7.5%
  • Term up to 25 years
  • Generally no penalties for early repayment
  • Local representation
  • Loan book c£60m
  • Open for new business
further information
Further Information

Jeremy Ince

Telephone: 07787 575023


Jeremy Ince

07787 575023