Social Investment Tri borough funding fair 19 th June John Gillespie, ACEVO Diagrams thanks to Big Society Capital
Apr 01, 2015
Social InvestmentTri borough funding fair 19th June
John Gillespie, ACEVO
Diagrams thanks to Big Society Capital
What is social investment?
It IS:the provision of finance to generate social and
financial returns
It is NOT:a grant – there is an expectation of repayment of the
finance, plus a return
Why is social investment beneficial?
• Fills financing gap for innovation and growth, increasing impact.
• Strengthens governance and accountability
• Brings in new groups of supporters, and their skills and experience
• Capital is recycled for onward investment
• Deeper engagement with social sector and community
• Helps shape a new responsible form of capitalism
For INVESTEES For INVESTORS
Why social investment?
Access to finance for small and medium
sized charities – on a par with private
businesses
Broadening investor options to invest in
socially useful activity – “twin bottom line”
Capital to scale innovative approaches
to tackling social problems
Support preventative/ invest to save
approaches
Different uses
Working capital – aka “overdraft”
Capital purchase – building or equipmentaka mortgage/ hire purchase
Development/ growth capitalaka student loan/ career development loan
£109m £72m
The Social Investment Market
Wider social investment ecosystem
OCS Social Incubator
Fund(£10m)
Big Venture Challenge (>£5m)
CO ICRF (£10m)
Stage of business growth
Commissioning/revenue support
Secured Loans
Unsecured Loans
Equity
Grant
Restricted Grant
Social Investment Funds (~£20m)
Start up Early GrowthEstablished
Type
of c
apita
l
BIG Potential(£10m)
CO Outcomes Fund (£10m)
BLF Outcomes Fund (£40m)
Fully or partly funded by government
Fully or partly funded by Big Lottery Fund
Partly capitalised by Big Society Capital
Other
Grant programmes from Charitable Trusts and Foundations (>£2bn)
Social Banks (~£180m)
Tech for Good
(£500K)
Social Investment Finance Intermediaries
Social Funds
General funds
Specialised funds
Social Lenders
Social Impact Partnerships
Investment Readiness
ResultsFund
Social Investment Market CIC
SocialIncubator
Fund
Improving sustainability - Greenway Centre
“Installing solar panels has enabled us to reduce our operating costs, so our services remain affordable for the whole community”
‘hire purchase’ a mini-bus
CAF Venturesome helped a small charity with next to no reserves purchase a mini-bus. Loan paid back over 2-5 years.
SIB Model: To reduce loneliness and isolation amongst older people (in development by Social Finance)
Investment in services to reduce loneliness – benefits of reduced service use and improved health outcomes
Reduced loneliness
SIB SPV
Investment into SIB programme
Payments represent a % of cost savingsInvestors Commissioner
(eg LA)
Delivery programme (could include peer support, group activity, CBT for most isolated)
Lead delivery charity
Payment metric:Reduction in loneliness
- Pressing social need
- Engaged commissioner
- Complex social outcome to evidence
Tri-borough Commission on Social Investment “the local opportunity”
• Currently taking evidence• Report and recommendations due in August
– How to develop the local ecology? – How to increase supply of investment available to
local organisations– Perhaps working with local foundations to develop a
local fund for tri-borough– Raising money from high net worth individuals ‘crowd
funding’
Is social investment right for us?
…… Not a replacement for grants or other income..• Do you have an income stream?• What level of repayments can you afford?• Be clear about what you need it for –
working capital, capital purchase, growth capital
• Can you evidence social impact? • What is your appetite for risk (including
that of trustees)
Some sources of support
• Community Assets and Services Grants – up to £10k (pre-feasibility) and £100k (feasibility) - for any org that is looking to deliver a public service
• Big Potential – up to about £100k for any org that is looking to borrow up to £500k
For more information and contact to tri-borough commission, see