WIDENING PARTICIPATION IN SOCIAL INVESTMENTInside Government
@GeethaBigSocCap
October 2016
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
OUR VISION
3
We want to make sure that every charity and social enterprise in the UK can navigate
and find appropriate and affordable finance and support which is accessible and easy
to understand, to grow their positive impact on society.
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
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
SECURED LOANS
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Emmaus Village Carlton used loans from Charity Bank to pay for
refurbishment of their 15 acre site. It now supports several Emmaus homes as
well as a boutique, a furniture shop and a companion run bric-a-brac store.
WHO ARE SOCIAL INVESTORS?
PhilanthropyTraditional
Investment
Trusts and
Foundations
Individual
Investors
Angel
Networks
Social
Investment Fund
Managers
Social Investment
Social Return Financial Return
FARESHARE SOUTHWEST – TAKING ON SOCIAL INVESTMENT FOR REVENUE GROWTH
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• FareShare South West works with the food industry to reduce the amount of fit-for-
purpose food going to waste.
• The produce is distributed to local organisations working with vulnerable people,
ensuring those in the community that are most in need have nutritious food.
• Fareshare wanted to grow their Surplus Supper Arm Club but did not have the funds
upfront
• They borrowed 70,000 from individuals using Social Investment Tax Relief and
will repay the loan through growth in revenue
WAYS TO WELLNESS SIB
Bridges Social Impact Bond
Fund invests into SIB
Ways to Wellness funds
consortium of 4 local charities
to provide non-clinical services
improving self-care and lifestyle
Reduction in secondary care
usage
Newcastle Gateshead Clinical
Commissioning Group saves
money, plus reduced burden
on services, investors paid
with % of cost savings
SOCIAL PROPERTY FUNDS
By 31st March 2016, the £57m Real
Lettings Property Fund had 226 properties
tenanted, providing fully refurbished homes
for 553 people (including children)
A SHIFTING LENS – MAKING BEST USE OF ALL ASSETS
Charities as
investorsCharities as
investeesSet up a fund to incubate new
interventionsLarge long-term finance
Shaped around
Macmillan’s mission
Capital used to scale
innovative community-
based models that meet
the needs of those with
long-term conditions
CROWD MATCH FUND
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The Crowd Match Fund will
match investments made by
individuals on crowdfunding
platforms into charities and social
enterprises
The £5 million fund will match
investments eligible for social
investment tax relief.
Debt and equity (community
shares)Regulated Social
Sector Organisations
Social Investment Tax Relief
Crowdfunding platform
Crowdfunding platform
Crowdfunding platform
“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
SUMMARY OF SOCIAL INVESTMENT SOLUTIONS
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Charity Raises Investment
Directly
Investment via Another Vehicle
(not on charity balance sheet)
• Traditional secured loans
• Blend secured/unsecured loan
• Charity bonds
• Social property fund (Dedicated for one charity/client group
or for multiple groups)
Unlikely to be a single solution for all
We believe organisations should have access to a range and combination of options
that best meet their requirements and circumstances
• Unsecured loans
• Grant/loan blend
• Equity-like: social venture funds,
community shares
• Crowdfunding
• Social Impact Bonds
Cap
ital fo
r
Pro
pert
y
Cap
ital fo
r N
ew
Reven
ues
“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”