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

2. 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 mission to use money for good
Specialise in lending to charities and social enterprises
Shareholders are either a charitable trust, foundation or social purpose organisation
Non-executive directors are unpaid / no staff bonus scheme

3. 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
The only bank in the UK with the Social Enterprise Mark
First bank in Europe to become a B Corporation, an independently assessed certification for businesses that can meet rigorous social and environmental standards

4. 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, we’ll work with you side-by-side
We exists to help social sector organisations access loans
We’ve lent over £200 million to charities and social enterprises
We take the time to meet and build relationships with our borrowers – old fashioned relationship banking.
100% of our borrowers would recommend us

5. - Alan Fraser, chief executive, YMCA Birmingham
09/11/2018
YMCA Birmingham
“Charity Bank saw us as a partner in doing good, rather than just a customer from whom they could make money.”
- Alan Fraser, chief executive, YMCA Birmingham

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Why Loans?

7. 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 – help leverage grants
To help fund new contracts/services – diversify income and support sustainability.
To supplement grants and donations, which are not always sufficient

8. 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 – unrestricted funding

9. What are the benefits of borrowing:
09/11/2018
What are the benefits of borrowing:
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

10. 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?

11. Should your charity borrow?
09/11/2018
Should your charity borrow?
Do sensitivity testing & risk analysis – “what if” analysis
Read the small print – can you comply with all of the terms?
Have you recognised all of the costs?

12. Check your constitution – does it prohibit borrowing?
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?
Section 124(2) – independent advice required

13. Evidence that you can afford the loan Good governance
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

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“They take the time to consider our plans and opinions and we never feel like a number”
As one borrower put it…
They take the time to consider our plans and opinions and we never feel like a number
Charity Bank
Borrower

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Meet our borrowers

16. Emmaus Village Carlton
09/11/2018
Emmaus Village Carlton

17. Emmaus Village Carlton
09/11/2018
Emmaus Village Carlton

18. Unit3Sixty CIC Indoor Skatepark Stourbridge

19. Get in touch Peter Hughes Regional Manager
09/11/2018
Get in touch
Peter Hughes
Regional Manager
Call: (Head Office)
(Direct Line)
Visit: charitybank.org
Follow: @charitybank

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