A different bank for those who want a different world

When Grants are not enough……. Community Funding Options 27 November 2012 Jeremy Ince Regional Representative

A different bank for those who want a different world Social Investment Social investment is any investment activity which has an expectation of both a specified social outcome and an explicit financial return (usually below market-rate). Main difference with traditional types of funding is that there is generally an expectation of repayment! NAVCA – February 2012

A different bank for those who want a different world How Does It Work? Investees Charities Social Ent Intermediaries £ Investors Individuals Grant Makers Government Corporations

A different bank for those who want a different world How Does It Work (2) Service IncomeSurplusInvestor £££ Growth

A different bank for those who want a different world Types Of Social Investment Loan Finance Bridging Loan Overdraft Equity Investment/Revenue Participation Community Share Schemes Social Impact Bonds Charity Bonds

A different bank for those who want a different world Possible Uses For A Loan Buying a building Working capital Buying equipment Starting new projects Last Brick Funding Refurbishing premises Rescue Packages

A different bank for those who want a different world Benefits of loan finance Enables a project to be delivered mmediately Can avoid potential increases in costs Lending against pledges/retrospective grants Independence Comes without strings attached Leverage Match Funding

A different bank for those who want a different world Investment Appraisal Background information on the Trustees and Management team Business Plan – 3 years forward Risk Analysis, including contingency planning Past 3 years annual accounts & annual reports Financial projections Bank statements

A different bank for those who want a different world Assessing loan applications Nature of the projectNature of the project Who benefitsWho benefits Ability to service borrowingAbility to service borrowing Quality of the applicant/key staff/governanceQuality of the applicant/key staff/governance

A different bank for those who want a different world What is Charity Bank? A Bank that is also a Charity Our mission is to transform the future of charities and social businesses

A different bank for those who want a different world How we achieve our mission We provide affordable loan finance to social enterprises, charitable organisations and community groups that might not be able to borrow elsewhere Our work is funded by individuals and organisations that use their savings as a positive source for change. Every pound deposited is used to provide loans to organisations that support their communities.

A different bank for those who want a different world Charity Bank s impact to date £ 60+ million the amount of money that has been placed with or invested in Charity Bank. £ 110,000,000+ the amount committed to 730+ charities, churches, and social enterprises to date. 3,000,000 the number of people in the UK that have been reached by organizations that Charity Bank has supported £ 160 million of additional funding has been unlocked as a result of our funding.

A different bank for those who want a different world Charity Bank loan finance 6 months to 25 years Secured or unsecured Secured on property or other assets: maximum 70% loan to value Rate typically 6.5% secured and 7.5% unsecured Arrangement fee 1%, minimum £ 250 No early repayment penalties

A different bank for those who want a different world Why Charity Bank Other banks might not consider itOther banks might not consider it No guarantees from Directors / TrusteesNo guarantees from Directors / Trustees Unsecured loans where appropriateUnsecured loans where appropriate Stable & competitive interest ratesStable & competitive interest rates No need to change banksNo need to change banks Understanding of the social economyUnderstanding of the social economy We are a charity ourselvesWe are a charity ourselves

A different bank for those who want a different world Charity Bank – Key Facts Specialist Lender to Social Enterprise Mkt. Loans £50k - £1m Secured & Unsecured Rates between 5% & 7.5% Term up to 25 years Generally penalties for early repayment Local representation Loan book c£60m Open for new business

A different bank for those who want a different world City Life Church Sunderland £300k loan agreed to assist church with the construction of community facility adjacent to existing church. Total project cost £500k. Repayments funded from church mission and charitable giving.

A different bank for those who want a different world Allendale Creative Arts Allendale Forge Studios Art And Craft Centre is a artist led gallery and studio space, developed on the site of the old Allendale blacksmiths forge on Allendale Market Place. Charity Bank provided a loan of £250k towards total project cost of £700k. Loan repayments funded from studio lets and trading income

A different bank for those who want a different world Durham Social Resource Centre £135k loan provided by CB to assist with construction of new premises and funding for new contracts/growth

A different bank for those who want a different world And Many More…. Arts and Heritage Community Centres and Village Halls Community Regeneration Community Sport Education and Training Faith Health Housing and Supported Accommodation International Social Care Sustainable Development Umbrella Organisations

A different bank for those who want a different world Bring It On! New source of capital in market where grants are increasingly difficult to obtain. But…it needs to be repaid. Mission driven? Need to consider the risks!

A different bank for those who want a different world Questions?

A different bank for those who want a different world Jeremy Ince Telephone: Registered Office: The Charity Bank Limited, 194 High Street, Tonbridge, Kent TN9 1BE. Registered in England and Wales No Registered charity No Charity Bank is authorised and regulated by the Financial Services Authority No