Social Finance & Impact Investment
"With the recent reduction in grants, and the greater level of competition from donations, how will the sector evolve to maintain its ‘impact’ and the scope and scale of its work? This is where social finance and social investment may have a place to play."
Mark Salway, Cass CCE Director of Social Finance
Repayable finance and social investment is becoming a key part of the mix, and a potential way of funding the sector to maintain future impact. However, it is not appropriate for all charities.
Through social investment, an organisation borrows money to leverage and create impact, and then has to pay this back. It therefore relies on a much more commercial model for charities. We can help organisations go on that cultural shift and guide nonprofits in what this may mean.
We work with nonprofit organisations and charities to enable them to take their own decisions about whether social finance and social investment is right for them or not, and to enable a powerful boardroom discussion to start.
- Considering why you would borrow. For example, for cashflow, to buy an asset, to invest in a specific project or programme, or to leverage fundraising. We help you understand what social investment could be used for
- Strategic Finance model. We help trustees and management review their current financial model, reserve policy and how potential investment may change this
- Learning workshops. We help develop workshop with staff and/or trustees to build understanding of social finance, social enterprise and social investment
- Investment readiness. We review organisations for investment readiness. We also help organisations consider the governance arrangements necessary for social investment
- Review of investment opportunities. We help organisations think what options may exist for social finance models, including what form of social finance may be most appropriate: finance from loans, mortgages and simple borrowing, to crowd-funding, peer to peer lending, and Social Impact Bonds. The range of various instruments is wide