Social investment is a relatively new form of fundraising for the non-profit sector. But with the grant pool shrinking, it is increasingly becoming a more important source of funds.
There are many providers of social investment and their products come in many forms. As a general guide, social investment is mainly loans or ‘patient capital’ ie money that is lent to your organisation which is paid back later than a loan is usually repaid.
The advantages of social investment are clear:
- It can provide significant upfront capital to enable you to get on with your work, and breathe more easily financially
- This funding helps you get on with your work and not be distracted by constantly seeking grant funds
- The funds aren’t ring-fenced, like a lot of charitable donations and grants. Therefore the funds can be used more flexibly
- The reporting requirements are less onerous, so giving you more time to spend on doing the work you set out to do
- Social investors are specialists in their work and know the challenges social organisations face, so they usually are more supportive than mainstream lenders
- Social investors work together and also work with grant funders, so a supportive package of funding which is right for you, is a likely outcome from working with a social investor.
Thinking about your application:
Taking on social investment requires a new approach for many organisations. You will need to be able to demonstrate that your organisation is ‘investment ready’ ie able to service a loan.
What we can offer:
- An assesment of your prospects of raising social investment
- Investment readiness support, with governance and financial processes etc
- Help with creating a robust business plan
- Intoductions to appropriate social investors.