Social investment is the use of repayable finance to help an organisation achieve a social purpose.
Charities and social enterprises can use repayable finance to help them increase their impact on society, for example by growing their business, providing working capital for contract delivery, or buying assets.
Social investment is repayable, often with interest. Charities and social enterprises may generate a surplus through trading activities, contracts for delivering public services, grants and donations, or a combination of some or all of these. This surplus is then used to repay investors.
Social investment is not suitable for everyone, and it should be considered alongside other options. It’s important to look at the range offinance optionsavailable to your charity or social enterprise before deciding.