09/11/2018 1 A bank for good “We’re a bank for people who don’t just dream of a better world, they are busy building one.”

Charity Bank: A bank for good 09/11/2018 Charity Bank: A bank for good Run for charities and social enterprises and owned by charities and social purpose organisations A savings and loans bank with a mission to use money for good We only lend to charities and social enterprises Every single one of our shareholders is either a charitable trust, foundation or social purpose organisation Our non-executive directors are unpaid and we do not operate a staff bonus scheme We are the only bank in the UK with the Social Enterprise Mark We were the first bank in Europe to become a B Corporation, an independently assessed certification for businesses that can meet rigorous social and environmental standards

Our mission is to support your mission 09/11/2018 Our mission is to support your mission We exist to lend to charities and social enterprises, so you can be confident that we’ll work with you side-by-side We exists to help social sector organisations access loans We’ve approved loans of over £240 million to charities and social enterprises We take the time to meet and build relationships with our borrowers 100% of our borrowers would recommend us We run and support programmes that help prepare charities and social enterprises for repayable finance

09/11/2018 “We feel we have a partner working with us rather than a bank watching us” - Charity Bank Borrower Or as a borrower put it: This is about more than just being friendly - this is about true friendship, companionship - it’s about going further than we need to.

09/11/2018 1 Why Loans?

Why use loan finance ? To develop, purchase or refurbish a building 09/11/2018 Why use loan finance ? To develop, purchase or refurbish a building To form part of a match funding package To bridge receipt of delayed funds To obtain new contracts To acquire equipment To supplement grants and donations, which are not always sufficient To achieve one, or any mix of the above goals

What are the benefits of borrowing: 09/11/2018 What are the benefits of borrowing: Loans can allow projects to start more quickly, thus: Providing services sooner Generating income sooner Avoiding potential increases in costs Loans can be more flexible than grants Loans can enable donation income to be directed where it is most needed Loans can introduce business disciplines (effectiveness) Loans may bring involvement/expertise from motivated investors

Should your charity borrow? 09/11/2018 Should your charity borrow? Ask the lender for indicative terms early on Do a cost/benefit analysis – be sure it is the best way Are you confident you can afford the repayments? Do sensitivity testing – “what if” analysis Read the small print – can you comply with all of the terms? Have you recognised all of the costs?

09/11/2018 Are you ready to borrow? Check your constitution – does it prohibit borrowing? If not already a company – consider incorporating Can you offer security? Do you have ‘clean title’? Do you have your title deeds? Section 124(2)

09/11/2018 Dealing with lenders Make initial contact at the start of your project planning process Consider a social lender or ethical bank – they may have a better understanding of the social sector and be more willing to lend Don’t fear rejection – different banks have different criteria Find out about timescales – it can take longer than you might expect! If there seems to be a delay – contact your lender straightaway Get someone independent to read the loan offer

Key terms – comparing loans 09/11/2018 Key terms – comparing loans Interest – not just the rate but the type and term Fees – check for additional costs Security – what is required? Commitment – when and why can the bank pull the plug? Commitment – when do you become obligated? Covenants – can you comply; are they overly onerous? Trustee guarantees? Early repayment penalties? Requirement to change transactional account?

What lenders look for Evidence that you can afford the loan 09/11/2018 What lenders look for Evidence that you can afford the loan Good governance Provision of financial information Security Risk assessment or register Social impact

09/11/2018 1 Meet our borrowers

TLG, The Education Charity 09/11/2018 TLG, The Education Charity “We can now use this income stream to help us grow and give more young people the support they need to reach their full potential." - Tim Morfin, chief executive, TLG – The Education Charity

09/11/2018 Homes for Good “We aim to make 120 properties available, which we anticipate will benefit 480 people in Scotland over the next 8 years." - Susan Aktemel, director, Homes for Good

09/11/2018 Autism Plus "We’re transforming derelict farm buildings at Park House Farm, North Yorkshire, into a chocolate factory and horticulture enterprise, to be run by people with autism and other disabilities." - Philip Bartey, CEO, Autism Plus

09/11/2018 Emery Down Almshouses

09/11/2018 EVA Women's Aid “A Charity Bank loan helped us purchase the property, which is now a place of refuge helping mature women who have been suffering in silence to change their lives.” - Richinda Taylor, CEO of EVA Women's Aid

Chesterfield FC Community Trust 09/11/2018 Chesterfield FC Community Trust

09/11/2018 Settle Hydro “We used three loans from Charity Bank to achieve our vision and today I can proudly say that we are the first community-funded hydroelectric project in the region.” - Ann Harding, co-founding director, Settle Hydro

Folkestone Sports Centre Trust 09/11/2018 Folkestone Sports Centre Trust “Charity Bank saw our potential and gave its full support. Without it, the first phase of a major regeneration of this tired, 45-year old building would not have gone ahead and it would have most likely ended with closure.” - Tessa Stickler, general manager, Folkestone Sports Centre Trust

09/11/2018 First Stop Darlington “The loan from Charity Bank was easy to set up and we received good support from them throughout the process. “We are now saving around £10,000 a year that we would have been spending on rent and other operating costs. “We can now look forward to increasing the services we offer and helping more people in the future.” - Tracy Freeman, chief executive, First Stop Darlington

Save with a bank for good 09/11/2018 Save with a bank for good In a Charity Bank savings account, your money is a powerful force for good Save with a bank that is owned by the sector and run for the sector We pay you a fair rate of interest and we use your money to make loans to charities and social enterprises Your savings and reserves can become part of your social mission Visit charitybank.org for more details

09/11/2018 Get in touch Call: 01732 441973 Email: enquiries@charitybank.org Visit: charitybank.org Follow: @charitybank

09/11/2018 Date 7

THANK YOU FOR LISTENING CHASE2016 Sponsors 2 Old College Court, 29 Priory Street, Ware, Hertfordshire, SG12 0DE