Best to Invest: A funders’ guide to social investment

Social enterprises and social investment are increasingly important in addressing social needs. In the UK social investment is valued at over £200m and expected to reach £1bn by 2016. Social investment is the provision of finance to organisations with a clear charitable or social agenda, to generate both social and financial return. It offers the opportunity for socially-minded investors to increase the impact of their money. The ‘Best to Invest?’ guide from NPC in the UK helps funders think through the benefits and risks of social investment, and how to decide if it is for them. In the UK the social investor base is starting to expand from a small number of market-building grant-making trusts, and interest is high amongst a broad range of individuals and foundations. There are also growing numbers of instruments that constitute social investment including social investment bonds and secured loan finance. Alongside grants, social investment can help donors achieve their mission by enabling charities and social enterprises to scale up their work, develop new activities, and become more sustainable by developing a reliable income stream. Social investment and social enterprises present opportunities for ministries to reach more people and become more sustainable financially.