Sustainability and Social Finance
Social Investment as a new charity finance tool: 'using both head and heart'. A practitioner research paper:
Over the past two years the fledgling social investment market has continued to grow by around 30 per cent per annum. There has been incredible interest in this new tool to help charities become more sustainable and grow; however continuing to build understanding and creating new business models will be key if growth is to continue.
Our work over the past two years has involved several hundred interviews, a large symposium and an online questionnaire. We are excited to release this report with the results of our work.
While most reports on social investment to date have focused from the investor’s viewpoint, our report is aimed from the charity side and should be directly relevant to charities and their motivation for using social investment as a new finance tool. It will also be of considerable interest to investors and intermediaries wanting to engage with this nascent market.
We find that charities do want social investment, but are unsure how to use this new tool. They see potential for building sustainable and predictable income streams but are unsure how to implement and use this; especially when investment and borrowing can feel at odds to their charitable work.
Social investment Tools for Success guide
Download our new guide which will help you to understand social investment and how you can use it in your funding mix. It also includes a diagnostic tool that you can use to think about social investment.
In return for accessing and downloading the toolkit for free, we would be grateful if you would complete our short, two-page questionnaire which will help us to map out the social investment landscape and determine how we can be best placed to support the sector.
Please take part here
Articles on Social Investment and Charity Finance
Our team has been writing a wide range of articles and short reports on Social Investment and Charity Finance. You can find them here:
- The February Charity Finance column looks at the power of energy in organisations
- The March Charity Finance column looks at how charities and funders must recognise the need to properly fund overheads
- The May Charity Finance column takes a look at the interconnectivity of expenditure, income, reserves and surplus
- The June Charity Finance column looks at how charities could innovate their financial models
- The July Charity Finance column explains the thinking behind a major new research report on social investment
- Governance Blog, 15 March, Mark Salway - Civil Society
- How changes in social funding are impacting on charity finance
- How to measure performance and set unrestricted reserves
- Reviewing the Finance Function - Set your course and cruise
- Social Enterprise - A new model for change
- Mark Salway and Eric Walker consider the dangerous cycle of under funding overheads
- Mark Salway considers the current state of the market for social investment and its future growth
- How small charities can use their finances to maximum affect to build sustainability
- The September Charity Finance column looks at our biases and how these skew decisions
- The October Charity Finance column looks at Charity Finance Strategy and how FDs saves lives
- The November Charity Finance column takes a look at Olympic Athletes and how Charity Finance Directors can learn a lot from them and step up their game
- The December Charity Finance Column looks at improving management accounts
Head Over Heart: The Future of Nonprofit Finance
Together with Big Society Capital, Charities Aid Foundation, Charity Finance Group and Macquarie Group, we hosted our first symposium on nonprofit finance and social investment on 12th November 2015. We are grateful to The Worshipful Company of Management Consultants for their generous support.
The aim of the symposium was to create a base of understanding around Social Finance and Social Impact Investing upon which the topic can be explored through critical thinking, investigating new ideas and challenging existing opinions.
Symposium thought pieces
Each of our partner organisations has written a short thought piece giving a personal perspective ahead of the symposium. Download them below:
- Big Society Capital - Geetha Rabindrakumar
- Cass CCE - Mark Salway
- Charities Aid Foundation - David Stead
- Charity Finance Group - Andrew O'Brien
You can also visit our Professional Development Social Finance page where you can view events we are running and book your place.