1. The opportunities and risks of social investment
Kieran Whiteside, Project Manager, Good Finance

2. The social challenge
Social enterprises and charities are dealing with some of the most challenging issues in the UK
We understand the magnitude of the challenge
There is increasing demand for the sectors’ services and social need, whether due to an ageing population or the impact of the economic climate and public sector funding environment.
Issue areas:
Employment, training and education
Housing and local facilities
Income and financial inclusion
Physical health
Mental health and well-being
Family, friends and relationships
Citizenship and community
Arts, heritage, sports and faith
Conservation of the natural environment

3. K10, social enterprise
Social investment sits alongside donations and grants as another tool that charities and social enterprises can use to help buy an asset, deliver a contract or grow their work.

4. To build innovation, growth and sustainability
Another tool
FINANCIAL TOOLKIT
Social
Investment
Trading
Donations
Bank
Finance
Contracts/ Payment
By Results
To build innovation, growth and sustainability

5. Why social investment?
Recycle money available
Attract additional funding
Social Investment can benefit the wider sector, as well as the individual social enterprise or charity taking on the investment.
Be more flexible than grants
Enable enterprise to direct grant income to where most needed
Bring business discipline (effectiveness)
Bring wider support and engagement with your mission
Bring involvement/expertise from motivated investors
Sharpening focus on social impact
SECTOR
YOUR
SOCIAL
ENTERPRISE
OR CHARITY

6. Early considerations What do you need investment for?
What social impact will you create?
Is there an income stream with a surplus?
Buy an asset
Government contract
Rental income
Maintain cash flow
Membership fees
Kickstart
your business
Donations
To grow and innovate
Trading

7. Who are the social investors?
Social Investment Fund Managers
Social Banks
Trusts and Foundations
Individual Investors
Traditional
Investment
Philanthropy
Social Investment
Social Return
Financial Return

8. Common questions about social investment
Is social investment more expensive than mainstream commercial lending?
Is there a benefit of social investment over borrowing from banks?
Why do social investors ask so many questions before being able to make a decision about lending?
Is social investment suitable for social enterprises and charities at every stage of their development? E.g. start up?

9. CASE STUDY: Furnistore
PROBLEM
Families in difficult or emergency situations often lack the basic essentials to set up a home.
SOLUTION
Works with local agencies giving families furniture and household appliances at a significant discount or no cost.
REVENUE MODEL
Furnistore sells second-hand furniture to the general public and so are able to support low income families and to repay mortgage.
IMPACT
Took out mortgage to buy own premises as permanent base. Now selling second-hand furniture and provide emergency support.
Duration
20 years
Cost of capital 6%
Invested
£160,000
Turnover
£185,000

10. CASE STUDY: Burley Gate community shop & post office
PROBLEM
Due to owners retiring the Post Office and Village Shop were under threat of closure, it is the only shop and post office in 15miles.
SOLUTION
Created a Community Benefit Society and money raised from local residents to buy a new portable building for the shop and buy the Post Office contract.
REVENUE MODEL
Individuals invested £57,000 using SITR through community shares or loan stock this will be repaid through income generated.
IMPACT
Serves a rural community with population of over Larger store has wider range of groceries and promotes local products.
Duration
4 years from loan
Cost of capital
Between 2-3%
Invested
£57,000
Turnover
£80,000

11. Good Finance - what is it?
Collaborative project between organisations committed to improving access to information on investment & finance for charities & social enterprises
Funded by
Website for charities & social enterprises to help them navigate social investment
In partnership with

12. Good Finance provides... Structured content
Investors/advisers directory
Diagnostic tool
Case studies
Impact measurement
Latest events & news

14. Next steps Visit the website Board members: sign up to “Get Informed”
Do you have a social investment story to tell?
Contact:

15. Q&A