1. Social Finance Heidi Harris

2. What is social finance Investment – balance of risk and return Considers financial and social returns

3. Types of social finance Grants Bridging loans Philanthropic capital Quasi-equity/Revenue participation Loans Social Impact Bonds

4. Social investment: a spectrum of returns - 100% + 8%0% Capital protected Market rate return Grant makers Limited SupplyIncreasing Supply

5. Social Impact Bonds Payment by Results (PbR)/Outcome based contracts (preventative) Identifiable social problem Commissioner interested in social problem Intervention provides measurable cost savings Social investor(s)/financial intermediaries invest for return based on achievement of social outcomes

6. Key Issues Business case Sustainability Legal structure -debt/share investments Financial Projections Cash flow management - PbR Measurement of outcomes - SROI Effective management

7. Who provides social finance? Charity Bank – for loans up to £250k - includes new start ups Venturesome – loans and quasi-equity – one year trading history Big Issue Invest – loans, quasi-equity and shares usually after 3 years Clearlyso – share investment Triodos – loans after 3 years

8. Who provides social finance? CIC Bond Venture Capitalists/Business Angels Esmee Fairbairn Bridges Ventures – bridging loans Investing for Good Impetus Trust – development loans CDFI’s

9. Useful links www.knowhownonprofit.org/funding/social- investment-1 - Social investment explained www.socialfinance.org.uk – Guides to developing social impact bonds/social finance

10. Contact Details Heidi Harris heidi@harrisaccountancy.co.uk 07530 428738 or 0121 629 7823 www.harrisaccountancy.co.uk