Big Issue Invest Big Potential Rochester: Social Investment Explained Social Impact Madeleine Thornton Social Impact Manager 15th November 2016

What are social investors looking for? Disclaimer: I don’t speak for everyone & I’ve not covered everything We would want to see: A clear coherent idea of your organisation’s social impact That you are actively managing your social impact. That your organisation’s aims and mission are aligned with our own

1. A clear coherent idea of your organisation’s social impact I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. Rudyard Kipling, The Elephant’s Child, 1902

Five Ws (and an H) Who The Big Issue supports people who are homeless or vulnerably housed. Although it is open to all-comers, Big Issue vendors tend to share some common experiences. They are typically young (92% are under 55), male (77%), and have other problems tied up with their housing situation (27% have a substance mis-use problem). Many also have additional needs to consider (13% are disabled and 43% speak English as a second language). This combination of characteristics is sometimes known as "multiple exclusion homelessness” What The Big Issue offers an opportunity to earn a legitimate income by selling the Big Issue Magazine. Vendors undergo an induction process and sign up to a code of conduct. They are allocated a pitch and issued with a number of free copies of the magazine. After selling their initial free copies vendors go on to buy the magazine for £1.25 per copy and sell it for £2.50 per copy, making a profit of £1.25 for every magazine they sell. On an average week in 2014/15 there were 1,490 Vendors selling the Big Issue Magazine across the UK, each selling an average of 43 Magazines. That’s £54 earned per vendor per week. Where The Big Issue has 63 distribution points nationwide and pitches available across the UK, mainly in cities.

Five Ws (and an H) When Selling the Big Issue offers vendors an opportunity at a specific moment in their lives - when they are experiencing a crisis. It is not usually a long-term proposition (50% of Vendors have been with the Magazine less than 12 months). Selling the Big Issue offers a first step out of that crisis before re-integrating in to mainstream housing and work opportunities. Why There are precious few earning opportunities for people who are struggling with multiple exclusion homelessness. Many are unable to give an employer an address and bank account details and would struggle to fit in with an average workplace. Yet many want to work and benefit from the structure, self-worth and - of course - the income, that comes with paid work. Selling the Big Issue is different from having a mainstream job. Vendors do not need a fixed address, bank account, office- smart clothes, qualifications or experience. The Big Issue offers a route back in to work for those who could not achieve it elsewhere. How The Big Issue runs as a company. While vendors keep £1.25 from every magazine sold, the other £1.25 covers the costs of production. Profits aren't distributed to shareholders. Any surpluses made are re-invested in the company. The Big Issue works in close partnership with its sister charity The Big Issue Foundation. The Foundation offers a wide range of support to vendors to help them on their journey, for example help to access accommodation and health services.

2. That you are actively managing your social impact. This is not just about measuring outcomes We want to invest in organisations that are actively managing their social impact.

What does managing social impact look like? Commit to learning and act on what you learn Actively look for negatives as well as positives Make changes and monitor the effects of those changes Plan for the time and money it takes to learn

3. That your organisation’s aims and mission are aligned with our own Big Issue Invest’s mission is to tackle poverty and create opportunity. What’s yours?

Big Issue Invest’s Five Pillars of Social Impact Effective Necessary Quality Inclusive Responsible

Finally: Demonstrating your social value to investors - what you can provide Your 5 Ws (and an H) or your theory of change – give as much detail and evidence as possible Any recent evaluation reports you have available Evidence of the context of and need for your work Examples of your internal monitoring data Policies and procedures that help you manage your social impact Any external validations (e.g. CQC reports, OFSTED reports) etc. Service development plans Evaluation plans Examples of board papers including impact info.