Social Investment

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Social investment is a way of investing into activities that provides both a social benefit and a profitable return on the investment for those providing the finance.

Social investment is a different way of funding community activities. It can take many different forms including the use of social impact bonds, patient capital finance, loans or a mixture of grants and loans to achieve high social impact.

For most not-for-profit organisations, social investment will often mean loan finance or a mixture of loans and grants from a wide range of organisations, including specialist banks, individuals, charitable trusts, etc.

Each funder has different motivations but what most social investors have in common is that they expect to get their money back, often with interest, and they want to see positive social change take place as a result of their investment.

Social investment might enable you to:

• Grow your business
• Put in place better systems
• Do more social good
• Repay the investment in the process

Social Investment can be a really effective means of increasing sustainability and social outcomes if your organisation can generate a return.

To search for social investment opportunities, you can use the Good Finance search tool. LCVS advisors can help you to discuss these opportunities and whether or not they are right for you.

Fill in our enquiry form to find out more about how we can help you, or email us at info@lcvs.org.uk.