1. DEMYSTIFYING Social Investment: THE Why, WHAT, WHEN & HOW!
Melanie Mills
@Mel_BigSocCap
May 2017

2. The social challenge
Charities & social enterprises are dealing with some of the most challenging issues in the UK
We understand the magnitude of the challenge
There is increasing demand for the sectors’ services and social need, whether due to an ageing population or the impact of the economic climate and public sector funding environment.
Issue areas:
Employment, training and education
Housing and local facilities
Income and financial inclusion
Physical health
Mental health and well-being
Family, friends and relationships
Citizenship and community
Arts, heritage, sports and faith
Conservation of the natural environment

3. Social investment sits alongside donations and grants as another tool that charities and social enterprises can use to help buy an asset, deliver a contract or grow their work.
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4. 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

5. Early considerations What do you need investment for?
What social impact will you create?
Is there an income stream with a surplus?
Buy an asset
Government contract
Rental income
Maintain cash flow
Membership fees
Kickstart
your business
Donations
To grow and innovate
Trading

6. Who Are social investors?
Social Investment Fund Managers
Social Banks
Trusts and Foundations
Individual Investors
Traditional
Investment
Philanthropy
Social Investment
Social Return
Financial Return

7. What KIND OF INVESTMENT?

8. WHAT IS IT?
A collaborative project between organisations committed to improving access to information on investment & finance for charities & social enterprises
A website for charities & social enterprises to help them navigate social investment
Funded by
In partnership with

9. CASE STUDY: Furnistore
PROBLEM
Families in difficult or emergency situations often lack the basic essentials to set up a home.
SOLUTION
Works with local agencies giving families furniture and household appliances at a significant discount or no cost.
REVENUE MODEL
Furnistore sells second-hand furniture to the general public and so are able to support low income families and to repay mortgage.
IMPACT
Took out mortgage to buy own premises as permanent base. Now selling second-hand furniture and provide emergency support.
Duration
20 years
Cost of capital 6%
Invested
£160,000
Turnover
£185,000

10. CASE STUDY: Burley Gate community shop & post office
PROBLEM
Due to owners retiring the Post Office and Village Shop were under threat of closure, it is the only shop and post office in 15miles.
SOLUTION
Created a Community Benefit Society and money raised from local residents to buy a new portable building for the shop and buy the Post Office contract.
REVENUE MODEL
Individuals invested £57,000 using SITR through community shares or loan stock this will be repaid through income generated.
IMPACT
Serves a rural community with population of over Larger store has wider range of groceries and promotes local products.
Duration
4 years from loan
Cost of capital
Between 2-3%
Invested
£57,000
Turnover
£80,000

11. CASE STUDY: BRAMLEY BATHS
PROBLEM
Clevedon Pier is a Victorian seaside pier that suffered a partial collapse. The local community saved the pier from demolition but it needs ongoing renovation.
SOLUTION
New visitor’s centre, cafe, restaurant, toilets and conference room facilities. Income from this business will be used to re-develop and maintain the pier.
REVENUE MODEL
Over 1,000 local people have invested via community shares. The investment will be repaid with income from the visitor’s centre.
IMPACT
New facilities will be open for local people and organisations. The pier is the only fully operating Grade 1 listed building.
Duration
5 Years
Cost of capital
6.5%
Invested
£50,000
Turnover

12. NEW DEVELOPMENTS https://www.bigsocietycapital.com/get-informed  
SOCIAL INVESTMENT TAX RELIEF
A TAX BREAK FOR TRADING CHARITIES & SOCIAL ENTERPRISES
On Good Finance you can find:
A list of open funds
Information about Social Investment Tax Reliefhttps://
Frequently asked questions about social investment
Upcoming events
Social impact guides and resources
On Big Potential you can find information about:
Investment readiness
Capacity building
Social Investment Explained guide

13. 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

14. ABOUT BIG SOCIETY CAPITAL
We are here to grow the social investment market by:
Acting as a champion, increasing the use of social investment and building understanding with charities, social enterprises and investors.
Providing finance to fund managers and social banks, who invest in charities and social enterprises to tackle social issues in the UK.

15. Melanie Mills @Mel_BigSocCap
HOW CAN WE HELP?
1. Sign Up To By sharing more case studies 3. Learn more about social investment tools like SITR 4. Share our Gritty Reality Blogs with you? 5. Any questions?
Melanie Mills
@Mel_BigSocCap