Social Investment

...transforming how we make a difference...

A class of 'Impact Investing' where your activities bring about measurable social impact, thereby creating Social Dividend, in addition to profit dividend. 

...why consultancy?...

As a relatively new investment space, with a number of potential obstacles for investees /impact investors to overcome; impact investors need to satisfy themselves that your organisation is positioned to deliver a blended return (the ability to generate a financial return allied to social value).

The skill and experience of your management team:
  • The skill and experience of your most senior members of staff
  • The role of your board and governance structure
  • The skills of your board in key areas such as finance, marketing, business
    development, human resources and legal
  • The balance of your board in terms of both skills and representation of the
    community and people who use your services
  • The overall skills and experience of your staff team and volunteers
  • The level of financial and business skills within the organisation
What you do and who your customers are:
  • How clear you are about the products and services you offer
  • How many customers you have and who they are
  • How are you different from your competitors
  • Whether the market for what you do is growing or shrinking, stable or volatile
  • How profitable your products and services are or will be
  • How well connected you are to local or national networks and partnerships
How you do things, how well you do them, and how you know:
  • Whether you have a clear vision of the impact you’re trying to achieve
  • Whether you have the capacity, resources and skills to deliver
  • Your track record of delivery
  • How well you engage with your community and/or people who use your services
  • How you manage performance and measure impact
  • How you report on your achievements and impact
How you do things, how well you do them, and how you know:
  • What systems you have in place for managing your finances and producing accounts
  • Your knowledge of your financial procedures and systems
  • The state of your cashflow – eg. over the past 12 months
  • Your predicted cashflow – eg. over the next 12 months
  • The extent and quality of your internal financial reporting
How you do things, how well you do them, and how you know:
  • Whether you have a clear vision of the impact you’re trying to achieve
  • Whether you have the capacity, resources and skills to deliver
  • Your track record of delivery
  • How well you engage with your community and/or people who use your services
  • How you manage performance and measure impact
  • How you report on your achievements and impact

...investment readiness...

There are marked similarities between 'Investment-Readiness' status in the ‘commercial investment market’ (CIM)  and  'social investment market'  (SIM), in large part due to the increasing number of financiers that are moving into the SIM ecosystem bringing with them standard commercial practices and underwriting.

Differences tend to be around the inclusion of social impact assessments for the SIM and the smaller-sized funds compared to their counterparts in the commercial sector.

Today, should a social enterprise (SE) identify investment from the SIM then it needs to do 4 things:

consolidate and 'professionalise' its business practices.
consolidate and 'professionalise' its governance structures.
examine and improve the competence of its management team.
undertake systematic financial modelling and thorough market research to produce sound, credible business plans that will stand-up to investor scrutiny.

Fortunately, in view of the costs involved, initiatives exist to support these developments.

We are looking to work with growing organisations that are actively seeking investment or contract opportunities.
 

Access – The Foundation for Social Investment
Access work to make it easier for charities and social enterprises in England to access the capital they need to grow and increase their impact.
They help to help make social investment easier to find and more relevant for charities and social enterprises.

Two Funds:

Big Potential Fund
Up to £75,000 to invest in Preliminary and Investment Plan Grants.

Investment readiness grants for charities and social enterprises to help you work with approved providers offering expert support.

Reach Fund

The Reach Fund is a two year grant fund that is testing a new model for investment readiness support. The programme is funded by Access – The Foundation for Social Investment and is open to organisations in England. Investment readiness grants for charities and social enterprises working with approved social investors – Access Points.

The Reach Funds Investment readiness support model draws the social investor into the design phase of the investment readiness process. VCSE organisations can be funnelled to the most relevant social investment.