Social investment & funds | Good Finance

Social investment & funds

Who are the investors?

Social investment from two places

K10

You can get social investment from two broad groups

1. Through an organisation

This is most likely to be from one of the following:

  • specialist social investment firms 
  • social banks
  • trusts & foundations 

Social investors will often have a particular focus market sector such as education, or in a specific geography, while some work with organisations at a particular stage of development. They may also only provide a certain type of social investment

Investors will often hold multiple funds, some of which have sub-funds.

Each organisation will have different eligibility criteria. It's important you know the basics first and are confident that social investment is right for your organisation before contacting any providers. 

Once you're sure, you can find a growing directory of the providers of social investment on our investors and advisors page.

2. Direct from an individual

Taking on investment from an individual or group of individuals. This includes:

Angel investment - You can find social investment focused angels on Clearly Social Angels or mainstream angels through UK Business Angels Association

Crowdfunding - There are a number of peer-to-peer lending and crowdfunding platforms that you could use. Three platforms that focus on social investment opportunities for charities and social enterprises are Crowdfunder, Ethex and Community Chest.

Community shares - If your legal model allows it and you think it's right for your organisation, the Community Shares Unit & Community Shares Scotland offer guidance on how to set up a community share offer

Social Investment Tax Relief - Remember, SITR can often be used as an additional tool to angel investment, crowdfunding and community shares.

How should you choose a social investor?