Social investments

We have developed expertise in relation to social investment including making applications to the the Investment and Contract Readiness Fund, Big Potential and Power to Change. We understand the needs of investors, how to present a business case and what is required to make organisations investment ready. We also have expertise in payment by results and can offer measured advice on the risks and benefits of this approach.

Social Investment is a more recent approach to funding, but being pushed hard by this government. It is frequently linked to Payment by Results as a way of funding the cost of a service until performance payments kick in. Many voluntary organisations are skeptical about this approach and the whole notion of borrowing money. However, with funding cuts increasing across the board, voluntary organisations and social enterprises may need to bite the bullet and consider social investment as a way forward. The advantage of a Social Investment Bond is that the investors take the financial risk of non performance rather than the provider, which is not the case with loans.

Social Investment is a complicated subject involving an organisation in a great deal of work including preparing a business case and becoming contract ready. We have
a developing knowledge of the arena and the way it works. We have assisted two of our clients in applying to the Big Potential fund, which provides financial support for developing a service offer which is suitable for working through a Social Investment Bond, with a third in the pipeline.

We can therefore support organisations in thinking through the possibilities for developing a Social Investment Bond, assist them in gaining financial support to take an idea further and making contact with London based social investment intermediaries.