attracting social investment: how, what and why? · charity or social enterprise by: …and the...
TRANSCRIPT
ATTRACTING SOCIAL INVESTMENT: HOW, WHAT AND WHY?Geetha RabindrakumarHead of Social Sector Engagement@GeethaBigSocCap
Improving Financial Management across Voluntary Sector conference
November 2016
www.bigsocietycapital.com
@BigSocietyCap
ABOUT US
Big Society Capital is an independent financial
institution with a social mission, set up to help to
develop social investment in the UK.
Champion for Social Investment
Wholesale
Social Investor
THE SOCIAL CHALLENGE
Charities & social enterprises are dealing with some of the
most challenging issues in the UK
WHAT IS SOCIAL INVESTMENT?
Social investment is repayable money to help charities and social
enterprises to create even more impact through their work.
ANOTHER TOOL
Trading Donations
Bank
Finance
Contracts/ Payment
By Results
Social
Investment
FINANCIAL TOOLKIT
To build innovation, growth and sustainability
WHY SOCIAL INVESTMENT?
∞Recycling money available
Attracting additional funding
~ Being more flexible than grants
Enabling grant income to be
directed where most needed
Bringing business discipline
Sharpening focus on social impact
Bringing wider support and
engagement with your mission
Bringing involvement/expertise from
motivated investors
Social investment can help your
charity or social enterprise by:
…and the wider sector
can benefit too
6
Funding growth
Funding innovation
& sharing risk
Supporting resilience
Why are charities using social investment?
WHO ARE SOCIAL INVESTORS?
PhilanthropyTraditional
Investment
Trusts and
Foundations
Individual
Investors
Angel
Networks
Social
Investment Fund
Managers
Social Investment
Social Return Financial Return
TYPES OF SOCIAL INVESTMENT
Equity
Asset
Ownership
Alternatives
Project
Financing
Secured Loans Unsecured
Loans
Community Shares
Venture Funds
Crowdfunding
Social Angels
Community Shares
Social Impact Bonds
Charity Bonds
Social Banks
Mainstream Banks
Crowdfunding
Unsecured Loan Funds
Social Investment Tax Relief
Social Property Funds
Asset Purchase Facilities
Social Investment Tax Relief
Social Investment Tax Relief
WHAT MAKES A CHARITY INVESTIBLE?
EARLY CONSIDERATIONS
What do you need
investment for?
Is there an income
stream with a
surplus?
What social impact
will you create?
For an asset
Working capital
Bridging finance
To expand
Government contract
Rental income
Membership fees
Donations
Trading
Social Investment Business oversee 2 programmes for investment readiness:
Skills
Experience
People
What you do
Who your customers are
Market
How you do things
How well you do them
Impact/ Track
RecordState/ Management
Finances
INVESTMENT READINESS SUPPORT
www.bigpotential.org.uk
http://www.reachfund.org.uk/
“As with any other aspect of strategy, trustees should feel confident to
make bold and even radical decisions on social investment as long as
they comply with their duties and responsibilities in reaching the
decision and they know they have the information they need.“
Sarah Atkinson, Director of Policy and Communications, Charity
Commission
HOW SHOULD YOU CHOOSE A SOCIAL INVESTOR?
“If you want to do things differently and transform lives in a way
that hasn’t been achieved before, you need the disruption that
social investment creates”
NEXT STEPS
17
Geetha Rabindraukumar
@GeethaBigSocCap
Can we help you:
• By sharing more social investment case studies with you?
• To learn more about other social investment tools like SITR?
• To let you know more about GET INFORMED campaign for
Trustees?
• To discuss how social investment could work in your sector?