A different bank for people who want a different world SOCIAL INVESTMENT 28 January 2014

A different bank for people who want a different world Definition 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 grant funding is that there is generally an expectation of repayment! NAVCA – February 2012

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

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

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

A different bank for people 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

A different bank for people 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 people 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 people 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 people who want a different world Case Study 1 Leeds Action To Create Homes (LATCH) Est in works with homeless people and volunteers bringing disused and derelict properties back into use. £50k loan agreed to refurbish x2 properties. Income from properties used to fund loan repayments.

A different bank for people who want a different world Case Study 2 Foresight (North East Lincolnshire) Limited operates throughout North to meet the needs and requirements of disabled people, their families and carers. Charity Bank approved a £300k loan to help purchase and renovate an empty care home into 30 flats for young disabled people.

A different bank for people who want a different world Point Blank Theatre Company A creative arts organisation based in Sheffield, it provides opportunities for artists, offers performance classes and reaches out to disadvantaged people in marginalised neighbourhoods. It borrowed £150,000 towards purchase of a new building in order to expand and rely less on grants by becoming more self-sufficient. Point Blank Theatre, Jon Maiden “Partly as a result of the credit crunch, we had hit a lot of brick walls with other lenders prior to getting involved with Charity Bank. We wouldn’t be where we are now without their faith in our project.”

A different bank for people 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? Consider the risks!

A different bank for people 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 people who want a different world Charity Bank – Key Facts Specialist Lender to Social Enterprise Mkt. Loans £50k - £2m Secured & Unsecured Rates between 5% & 7.5% Term up to 25 years Generally no penalties for early repayment Local representation Loan book c£60m Open for new business

A different bank for people who want a different world Further Information Jeremy Ince Telephone: Jeremy Ince