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Social Investment Tri borough funding fair 19 th June

Social Investment Tri borough funding fair 19 th June. John Gillespie, ACEVO Diagrams thanks to Big Society Capital. What is social investment?. It IS : t he provision of finance to generate social and financial returns. It is NOT :

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Social Investment Tri borough funding fair 19 th June

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  1. Social InvestmentTri borough funding fair 19th June John Gillespie, ACEVO Diagrams thanks to Big Society Capital

  2. 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

  3. Why is social investment beneficial? For INVESTORS For INVESTEES • 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

  4. Why social investment?

  5. Different uses

  6. The Social Investment Market £109m £72m

  7. Wider social investment ecosystem BLF Outcomes Fund (£40m) Commissioning/revenue support Secured Loans Unsecured Loans Equity Grant Restricted Grant CO Outcomes Fund (£10m) Type of capital Social Banks (~£180m) Social Investment Funds (~£20m) Fully or partly funded by government Fully or partly funded by Big Lottery Fund Partly capitalised by Big Society Capital Other Tech for Good (£500K) Big Venture Challenge (>£5m) Grant programmes from Charitable Trusts and Foundations (>£2bn) OCS Social Incubator Fund(£10m) BIG Potential (£10m) CO ICRF (£10m) Start up Early Growth Established Stage of business growth

  8. Social Investment Finance Intermediaries Investment Readiness SocialIncubator Fund Social Funds General funds Results Fund Specialised funds Social Lenders Social Investment Market CIC Social Impact Partnerships

  9. Improving sustainability - Greenway Centre “Installing solar panels has enabled us to reduce our operating costs, so our services remain affordable for the whole community”

  10. ‘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.

  11. 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 Payments represent a % of cost savings Commissioner (eg LA) Investors Investment into SIB programme • Pressing social need • Engaged commissioner • Complex social outcome to evidence Payment metric: Reduction in loneliness SIB SPV Lead delivery charity Delivery programme (could include peer support, group activity, CBT for most isolated) Reduced loneliness

  12. 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’

  13. 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)

  14. 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

  15. For more information and contact to tri-borough commission, see • John.gillespie@acevo.org.uk

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