DEMYSTIFYING Social Investment: THE Why, WHAT, WHEN & HOW! Melanie Mills @Mel_BigSocCap May 2017

The social challenge Charities & social enterprises 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

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. K10

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

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

Who Are social investors? Social Investment Fund Managers Social Banks Trusts and Foundations Individual Investors Traditional Investment Philanthropy Social Investment Social Return Financial Return

What KIND OF INVESTMENT?

WHAT IS IT? A collaborative project between organisations committed to improving access to information on investment & finance for charities & social enterprises A website for charities & social enterprises to help them navigate social investment Funded by In partnership with

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. www.furnistore.co.uk Duration 20 years Cost of capital 6% Invested £160,000 Turnover £185,000

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 1000. Larger store has wider range of groceries and promotes local products. www.burleygateshop.co.uk Duration 4 years from loan Cost of capital Between 2-3% Invested £57,000 Turnover £80,000

CASE STUDY: BRAMLEY BATHS PROBLEM Clevedon Pier is a Victorian seaside pier that suffered a partial collapse. The local community saved the pier from demolition but it needs ongoing renovation. SOLUTION New visitor’s centre, cafe, restaurant, toilets and conference room facilities. Income from this business will be used to re-develop and maintain the pier. REVENUE MODEL Over 1,000 local people have invested via community shares. The investment will be repaid with income from the visitor’s centre. IMPACT New facilities will be open for local people and organisations. The pier is the only fully operating Grade 1 listed building. www.bramleybaths.com Duration 5 Years Cost of capital 6.5% Invested £50,000 Turnover

NEW DEVELOPMENTS https://www.bigsocietycapital.com/get-informed https://www.bigsocietycapital.com/get-informed   https://www.bigsocietycapital.com/what-we-do/current-projects/social-investment-tax-relief SOCIAL INVESTMENT TAX RELIEF A TAX BREAK FOR TRADING CHARITIES & SOCIAL ENTERPRISES On Good Finance you can find: A list of open funds Information about Social Investment Tax Reliefhttps://www.bigsocietycapital.com/what-we-do/current-projects/social-investment-tax-relief Frequently asked questions about social investment Upcoming events Social impact guides and resources On Big Potential you can find information about: Investment readiness Capacity building Social Investment Explained guide

Big society capital We are an independent financial institution with a social mission, set up to help charities and social enterprises find the right kind of repayable finance they need to do more of their fantastic work. Homes for Good

ABOUT BIG SOCIETY CAPITAL We are here to grow the social investment market by: Acting as a champion, increasing the use of social investment and building understanding with charities, social enterprises and investors. Providing finance to fund managers and social banks, who invest in charities and social enterprises to tackle social issues in the UK.

Melanie Mills @Mel_BigSocCap HOW CAN WE HELP? 1. Sign Up To www.goodfinance.org.uk 2. By sharing more case studies 3. Learn more about social investment tools like SITR 4. Share our Gritty Reality Blogs with you? 5. Any questions? Melanie Mills @Mel_BigSocCap