Exploring social investment

Social investment is money that is given with the condition of both a social outcome and financial return. Social investment can take many forms, including loans, overdrafts, investment and bonds.

Your organisation might need an injection of finance in order to develop a more sustainable funding stream. It isn’t always practical to raise funds for this, perhaps it will take too long, or perhaps it isn’t a project that appeals to donors. If you're involved in contracting then you might need to bridge the gap between delivery of a service and payment. In these situations social investment may provide a solution.

Social investment is not income, it's an enabling finance that can help you to develop appropriate income streams to drive development at the appropriate time.

Social investment is not a replacement for grants, nor is it suitable for every organisation. Before considering social investment, you’ll need to have robust financial systems, such as accurate income projections, are in place that will allow you to manage such investment. Or you could consider schemes that provide capacity-building support to help you manage a loan.

Work your way through our guides to social investment: