Social Investment Explained

Charities may be able to access more flexible finance and attract more support through social investment than traditional grant funding, according to a guide published by Social Enterprise UK and the Big Lottery Fund.

The guide, entitled Social Investment Explained, states that charities must consider whether they are ready for investment, including examining the skills of their staff and board, the services they offer, the track record of the organisation, and the state of the organisation’s finances.

It also states that social investment is only appropriate for charities which are able to pay it back, particularly those with an income stream that investment would help to grow. It states that charities are most likely to want money to buy assets or scale up.

The guide examines the types of social investment available and the sources who provide it, and looks at how charities can work out how much money they need. It also provides a guide to the available social finance intermediaries and a glossary of terms.

To download the guide visit