Social investment

What is social investment?

Social investment is the provision of finance to charities and other social organisations to generate a social return. It is a relatively new form of finance, as charities primarily rely on grants, donations and their own reserves to survive. Many charities are coming to social investment for the first time and are wondering whether it is right for them.

Read NPC's publications on social investment to find out more about the opportunities and risks involved for charities and funders.

 

Social investment publications

Best to borrow? A charity guide to social investment (2011)
NPC’s guide to social investment aims to help charities understand the risks and opportunities social investment entails and the steps they need to think through before deciding if it is for them.

Review of Allia's charitable bonds (2011)
The charity Allia has developed a series of bonds which use social investment to generate unrestricted funds for charities. In this report, NPC reviews the bonds.

Understanding the demand and supply of social finance (2011)
The Big Society Bank (now Big Society Capital) aims to aid the growth of the UK’s social investment market, playing a central role in government plans for the voluntary sector. In 2011 NPC carried out research to inform the design of the bank.

New facilities, new funding (2010)
This paper explores how charities can use loans and social investment successfully to finance capital projects. It is the result of a project NPC carried out for the disability charity Scope, exploring the potential benefits and challenges of a financing model developed by the charity.

Lending to charities: Invest to give fund business plan (2006)
NPC has conducted research into financing charities through loans and other types of investments beyond grants. Read these reports for specific clients on a fund to support innovative fundraising approaches, and a fund to grow charities delivering public services.

 

Read more about social investment on NPC's blog.