Introduction to social investment Jo Heywood 24 October 2017

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

What is social investment? Social investment is repayable money to help charities and social enterprises to create even more impact through their work. Frontline credit

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 Is there an income stream with a surplus? What do you need investment for? Is there an income stream with a surplus? What social impact will you create? For an asset Government contract Rental income Working capital Membership fees Bridging finance Donations To expand Trading

Who Are social investors? Social Investment Fund Managers Angel Networks Trusts and Foundations Individual Investors The AHF can offer advice, grants and loans to projects that have the potential to deliver substantial social and economic benefits where they are needed most. http://ahfund.org.uk/investment/ Through the £7 million Arts Impact Fund, which is funded by Arts Council England, Bank of America Merrill Lynch, the Esmee Fairbairn and Calouste Gulbenkian foundations as well as Nesta, we’re experimenting with applying the concept of social impact investment to the arts and cultural sector in England using unsecured loans as our investment tool.   So far we have announced £5.4 million of investment across 16 enterprising arts organisations Traditional Investment Philanthropy Social Investment Social Return Financial Return

Clevedon Pier www.clevedonpier.co.uk £330,000 raised in total (£250,000 of which via Social Investment Tax Relief). PROBLEM SOLUTION REVENUE MODEL IMPACT Clevedon Pier is a Victorian seaside pier that suffered a partial collapse in 1970. Following successful lobbying from the local community, the pier was saved from demolition but requires continuous renovation. A new visitor’s centre was set up on the pier featuring a modern interactive activity and interpretation centre, cafe, restaurant and conference room facilities. Income from this business will be used to re-develop and maintain the pier. Over 1,000 local people have invested into the pier via community shares. The investment will be repaid through income generated from the visitor’s centre. Clevedon Pier serves Clevedon town in Somerset with over 25,000 residents. The new facilities will be open for local people and organisations. Clevedon Pier is the only fully operating Grade 1 listed building in the country.

What kind of investment? You have choices!

“As with any other aspect of strategy, trustees should feel confident to make bold and even radical decisions on social investment as long as they comply with their duties and responsibilities in reaching the decision and they know they have the information they need.“ Sarah Atkinson, Director of Policy and Communications, Charity Commission

For more information Big Society Capital is currently co-developing www.goodfinance.org.uk a website for charities and social enterprises to find information about social investment. Access – The Foundation for Social Investment aims to bridge the gap between charities and social enterprises, and social investors. To learn more visit: www.access-socialinvestment.org.uk You can also visit www.bigpotential.org.uk for information about investment readiness and capacity building.

bigsocietycapital.com @BigSocietyCap Big Society Capital Limited is registered in England and Wales at Companies House number 07599565. Our registered office is New Fetter Place, 8-10 New Fetter Lane, London EC4A 1AZ. Big Society Capital is authorised and regulated by Financial Conduct Authority number 568940.