Ldb Ri-scosse_Letizia Custodero - Guide for the ambitious social entrepreneur

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  • 1. 1We help social entrepreneursraise capitalAuthors: Simon Evill (Editor)Megan Bellamy (2ndEdition)Shiura Rasheed (2ndEdition)Grace Howells (1stEdition)Felipe Zalamea (1stEdition)Version: 2.0Published: March 2013Disclaimer and CopyrightThe information within this Guide has been taken from public sources for which ClearlySo isnot responsible. Whilst every effort has been made to ensure that all facts in this Guide areaccurate at the time of presentation on our website, if any errors have occurred, pleasecontact ClearlySo at contact@clearlyso.com so these can be rectified as soon as possible.The copyright in this document, unless referenced as the work of others, is covered by orlicensed to ClearlySo, with whom all rights are reserved.
  • 2. 2We help social entrepreneursraise capitalDear Entrepreneur,I welcome this second edition of the ClearlySo Guide for the Ambitious Social Entrepreneur and amdelighted to support this valuable resource – a mine of industry information that is free to access forall emerging social entrepreneurs and individuals with an interest in the sector.Our sponsorship of this guide is one of the many ways the City of London Corporation supports thesocial enterprise sector: from encouraging City businesses to procure from social enterprises, tosourcing free consultancy support from City employees for local social enterprises.As part of our commitment to helping progress the social investment marketplace and to provide thenecessary financial support for social organisations, the City of London Corporation has established a£20 million Social Investment Fund. This fund aims to provide investment into organisations that meeta social need (in the UK and internationally) and deliver positive financial returns. To find out moreplease visit www.cityoflondon.gov.uk/socialenterprise.I wish you happy reading and hope you find this introduction to the social enterprise sector bothconstructive and inspiring.Sincerely,Mark BoleatChairman of the Policy and Resources CommitteeThe City of London Corporation
  • 3. 3We help social entrepreneursraise capitalDear Entrepreneur,ClearlySo are proud and excited to publish the second edition of the ClearlySo Guide for theAmbitious Social Entrepreneur.When we launched the first edition in April 2012, we felt the sector was missing a comprehensivesource of the information, resources and organisations that exist to support social entrepreneurs. So,we distilled our industry knowledge and experience into this one document which became the Guide.For those who have read the Guide before, this revision reflects the growth, over the last nine months,of initiatives and organisations dedicated to supporting social entrepreneurship.As the sector evolves, we will continue to update the Guide biannually but the essential themes willremain the same: stay informed, get connected and find the organisations who are helping ventureslike yours.I would like to thank all our authors, past and present, for their incredibly thorough research in helpingto put this Guide together. Without their hard work it would simply not be possible to provide thisresource to our social entrepreneur network.I hope you find the Guide useful and do give us your feedback.Sincerely,Simon EvillCo-author and editor, the ClearlySo Guide for the Ambitious Social EntrepreneurClearlySoMarch 2013
  • 4. 4We help social entrepreneursraise capital1. About ClearlySo........................................................................................................... 62. The Social Enterprise Sector ...................................................................................... 8Size and resilience of social enterprises ....................................................................................8The key players ..........................................................................................................................8The demand for social investment ............................................................................................9Investment readiness...............................................................................................................10Public procurement and social value.......................................................................................103. Raising Capital........................................................................................................... 113.1. Functions of Capital ...........................................................................................................113.2. Types of Capital..................................................................................................................113.3. Sources of Capital..............................................................................................................15i. Angel Investors ................................................................................................................15ii. Social Venture Capital......................................................................................................17iii. Venture Philanthropy Capital .........................................................................................25iv. Crowdfunding ..................................................................................................................30v. Social Banks and Ethical Lenders.....................................................................................34vi. Community Banking.........................................................................................................36vii. Foundations and Trusts ...................................................................................................38viii. Social Venture Intermediaries .........................................................................................53ix. Award Organisations .......................................................................................................55Competitions and Challenges ..................................................................................................59x. Public Bodies and UK Government Funds .......................................................................63xi. European Union Funds ....................................................................................................694. Business Support and Investment Readiness Services ......................................... 694.1. Training and Mentoring .....................................................................................................694.2. Advisory Services and Consultancies.............................................................................714.3. Accelerator and Incubator Programmes.........................................................................75
  • 5. 5We help social entrepreneursraise capital4.4. Business Networks.............................................................................................................76i. UK & Ireland.....................................................................................................................76ii. Europe..............................................................................................................................78iii. International....................................................................................................................784.5. Co-Working Spaces...........................................................................................................795. Measuring Social Impact ........................................................................................... 805.1. Business Methodologies ...................................................................................................80i. Social Key Performance Indicators (KPIs) ........................................................................80ii. Social Accounting.............................................................................................................80iii. Impact Scorecard.............................................................................................................80iv. Social Return on Investment (SROI).................................................................................81v. Social e-valuator ..............................................................................................................81vi. GIIRS.................................................................................................................................81vii. IRIS ...................................................................................................................................815.2. Social Impact Reports from Social Enterprises .............................................................825.3. Developments in Social Impact Reporting .....................................................................826. Legal and Taxation .................................................................................................... 836.1. Legal Structures .................................................................................................................836.2. Tax Incentives for Investment in Social Enterprises.....................................................856.3. Access to Capital and Relevant Tax Structures............................................................877. Tools for Social Entrepreneurs................................................................................. 897.1. Directories for Social Enterprises ....................................................................................897.2. Online Tools and Resources ............................................................................................897.3. Sector News and Commentary ........................................................................................907.4. Social Media........................................................................................................................90i. Top Practical Tips.............................................................................................................90ii. Social Enterprise on Twitter.............................................................................................927.5. Key Events in the Sector...................................................................................................937.6. Franchising..........................................................................................................................948. Index ........................................................................................................................... 96
  • 6. 6We help social entrepreneursraise capitalClearlySo is a financial intermediary in thesocial investment sector, advising socialbusinesses and enterprises on raising capital.We provide corporate finance and financialadvisory services to social entrepreneurs withcapital raising ambitions of £500,000+ andwere approved as one of the first Investmentand Contract Readiness Fund (ICRF) Providersin July 2012.In addition, we run the first UK dedicated socialbusiness angel investment group called ‘ClearlySocial Angels’ and manage investorrelationships with leading institutional investors,including foundations, impact investment funds,banks and corporations.In 2013, we were announced as the investmentpartner for the ‘Big Venture Challenge’, anexciting three year programme designed toaddress the funding gap in the socialinvestment marketplace for early stage/highrisk capital, led by UnLtd and underwritten bythe BIG Lottery Fund.Our servicesClearlySo’s financial advisory service focuseson social businesses, social enterprises andimpact investment funds raising over £1 millionin capital. We do, however, also work for socialbusiness and enterprise clients raising£500,000+ but only if we consider theinvestment opportunity significantly compellingfor our angel group and High Net WorthInvestor (HNWI) network.We have two basic services for socialentrepreneurs raising capital:where wefacilitate introductions to a targeted groupof potential investorswhere wehelp our clients build a compellinginvestment case, devise a fundraisingstrategy and target investors.Services include:Full review of business plan and financialprojectionsAssistance on writing a business plan andbuilding financial projections in ExcelAdvice on corporate and legal structureAdvice on management team andgovernanceGuidance on the measurement andreporting of social or environmental impactAdvice on capital structure and likely termsForming a fundraising strategy,identification and introduction to potentialinvestorsCapital raising, negotiation of term sheetand deal closingOur researchOur research arm is a UK leader in socialinvestment and undertakes commissions forboth public and private sector clients such asthe BIG Lottery Fund, Skoll Foundation, OxfordUniversity, Marks & Spencer and the EU. Seeour publications page here.ClearlySo’s research heritage goes back over adecade with the launch of a websiteshowcasing social businesses and enterprisescalled ‘socialinvestments.com’. In September2008, (the same day Lehmans Brotherscollapsed) socialinvestments.com becameClearlySo. The online showcase of 60 originalbusinesses now numbers over 3,500enterprises from over 80 countries and can befiltered by industry, impact theme andgeography, see our directory here.
  • 7. 7We help social entrepreneursraise capitalLooking to connect with us?There are a number of entry points for socialentrepreneurs to connect with ClearlySo:Fill out our online social investmentapplication, designed in-house to managethe many incoming queries we receivefrom social enterprises across the UK.Applicants are able to get onto ourinvestment radar and benefit from referralto more appropriate sources of funding orhelp should their business not be at theright stage of development for our support.Come along to a ‘ClearlySo Tea Time’event for emerging social entrepreneursand mid-career professionals with aninterest in the sector. Free to attend, these‘group therapy’ sessions are an informalway attendees can talk to ClearlySoexperts as well as network with and learnfrom their peers.Visit our website www.clearlyso.comwhere you can browse dedicated contentand resources for entrepreneurs, sign upfor our industry newsletter or visit ourpopular jobs board.ClearlySo Ltd is an appointed representative ofCatalyst Fund Management & Research Ltdwhich is authorised and regulated by theFinancial Services Authority (No.185678).
  • 8. 8We help social entrepreneursraise capitalIf you are reading this the chances are that youare considering joining, or have already joinedthe growing ranks of socially-motivatedentrepreneurs around the world. Like themyou’re probably a problem-solver, combiningthe tools and disciplines of business with adeep passion for tackling a particular socialand/or environmental need. Never before hasthere been such opportunity for socialenterprise, as society struggles to cope withfinite resources, a damaged planet, an ageingand ailing population, widespread and deep-rooted social inequities, a growing gap betweenrich and poor and a weakened global economy.Size and resilience of socialenterprisesMost often quoted is the figure of 62,000 socialenterprises operating in the UK, generatingsustainable employment for close to 800,000people in the UK, including those mostdisadvantaged from accessing the labourmarket1. Social enterprises are said tocontribute approximately £32bn to the UKeconomy and appear to have demonstratedresilience during the recession, with 58% ofsocial enterprises reporting growth in 2010,compared to just 28% of mainstreamcompanies2. Within the EU, the social economyemploys over 11 million people, accounting for6% of total employment3. However, figuresshow these statistics are outdated and may bemisleading.Defining a social enterpriseThere are many definitions of a socialenterprise, but at the heart of the model is thecombination of doing business and doing goodwhich makes social enterprise one of the mostexciting and fast-growing sectors in the UK andinternationally.1Social Enterprise UK2SE UK (2011) ‘Fightback Britain’3CIRIEC, ‘The Social economy in the EuropeanUnion’, p48The common characteristics of a socialenterprise4are:It is an organisation that trades with theprimary aim of tackling social needs byimproving communities, people’s lifechances and/or our environment; it has aclear sense of its mission and how itsactivity addresses those needs.It differs from a straightforward charitybecause it is run as a business, generatingrevenue from trade and making surpluseswhich in part, or full, are used to financefurther activities to generate social benefit.It places an emphasis on profitoptimisation as opposed to profitmaximisation (unlike conventionalbusinesses), thus allowing for the trade-offs involved in securing potentially lessfinancial growth in the short-term to ensuresustainable, and socially impactful growthin the long-term.The key playersFor this nascent sector to mature fully socialenterprises need to develop strong workingrelationships with their customers and clients,the communities in which they serve, and withsocial investors with the capital andcommitment to invest in social need. Thegovernment is potentially a key customer and isincreasingly taking social value into account inits purchasing decisions5. It has also been amajor investor in the sector – both directly andindirectly. As direct investment tails offsignificantly, the government is increasinglytaking on the role of advocate, supporter andcustomer. Whilst the gap left by the withdrawalof traditional funding sources is significant andundoubtedly damaging to many socialenterprises and the communities they serve,there are, nevertheless, encouraging signs forthe sector’s longer term health.Big Society Capital (BSC) became operationalin April 2012 and has already made substantial4For further information on the history anddevelopments within social enterprise, see SE UKwebsite, including ‘Social Enterprise Explained’5See Localism Act 2010-2012 and Public Services(Social Value) Act 2012
  • 9. 9We help social entrepreneursraise capitalinvestments in sector infrastructure6. BSC ischarged with supporting the specific needs ofthe social investment market and operates as awholesale investor in other social investmentfinance intermediaries (SIFIs). Under theGovernment’s ‘Project Merlin’ agreement7,Barclays, HSBC, Lloyds Banking Group, andRoyal Bank of Scotland (RBS), have eachinvested £50m into BSC. A further £400m hascome via dormant bank accounts, following thework, report and recommendations of the‘Commission on Unclaimed Assets’8. In time,BSC’s capital is expected to leverage fargreater sums of capital flowing from socialinvestors into social enterprises.The UK is also perceived as a global leader inthe development of the social investmentmarket. The European Commission andinternational governments are looking at theexperience of the UK as they explore how tosupport the growth of their own socialenterprise sectors.Social enterprises are beginning to competewith mainstream companies whilst alsogenerating the positive impact which isincreasingly valued and demanded by societyat large. The most forward-thinking of the FTSE100 companies are fast considering how to,and in isolated examples beginning to, workwith social enterprises to help them meet thegrowing demands of their staff and customers.Some corporations are not only consideringusing social enterprises in their supply chains,but are looking at establishing their own socialinvestment funds and support programmes asa way of engaging more directly with thissector. Trade between social enterprises is alsoincreasing as the range of organisations andservices expand.Mainstream financial institutions are alsoincreasingly interested in social investmentopportunities. This has, in part, been influencedby clients, financial instability and poorinvestment returns in mainstream financialproducts. There is also a growing awarenessamongst analysts and economists, and in6BSC, ‘How we invest’7HM Treasury (9 Feb 2011) ‘Project Merlin – Banks’Statement’8Social Investment Task Force (April 2010) ‘SocialInvestment Ten Years On’corporate boardrooms, that supporting and/orinvesting in social and environmentalsustainability may contribute markedly to theresilience and future growth of their business.Platforms for building theinvestment marketThere is a real momentum in the way thatopportunities to invest directly in businesses,charities, and individuals are becoming moreavailable to the wider public; circumventingmainstream financial services and in particularembracing technology – the ‘democratisation offinance’ as some have posited9. For example,over $300m of loans have been created onKiva (see section 3.3.iv) alone since it wascreated in 2005, and over £268m of peer-to-peer personal loans have been made throughZopa in the UK. In the past few years a wealthof specialist sector platforms and crowdfundingsites have emerged to encourage trade inshares, loans and other support in social andcommunity and projects. See section 3.3 iv forfurther insights.The demand for social investmentWhilst the flow of capital into UK socialenterprises is still very small (£165m in 201110)compared to charitable giving (£9.3bn in2011/1211) and is completely dwarfed bymainstream SME finance, the number of socialinvestment funds is growing, as are theopportunities to back financially viable mission-driven organisations. The Boston ConsultingGroup’s report commissioned by BSC predictsthat demand for social investment could growto £1bn by 201612. If we compare this withglobal estimates for social (or impact)investment opportunities over the next tenyears, which focus on the ‘bottom of thepyramid’ market (infrastructure, health,environment and education in least-developed9Professor Robert Shiller (2008) ‘TheDemocratisation of Finance’, University of Yale10The Boston Consulting Group (BCG) (Sept 2012)‘The First Billion: A Forecast of Social InvestmentDemand’11CAF and NCVO (Nov 2012) ‘UK Giving 2012’12BCG (Sept 2012) ‘The First Billion: A Forecast ofSocial Investment Demand’
  • 10. 10We help social entrepreneursraise capitalnations), $400bn to nearly $1tn13is forecast tobe invested14.Investment readinessThe job of matching available finance toorganisations seeking capital needs a strongpipeline of investable enterprises. In reality,there are several dimensions to building aninvestment-ready market place. Firstly,entrepreneurs need to measure and conveytheir social impact to investors alongside arobust business opportunity. Secondly, theadvisory support for social sector organisationsmust be in place, providing high quality andaffordable professional advice on raising capital– to enable social ventures to access thedifferent types of finance required to fit theiroften complex needs. Mainstream investorshave begun to learn the different nuances andcomplexities of putting capital into socialenterprises – what they are investing in andwhat types of returns they can expect, bothsocial and financial.The introduction of the Cabinet Office’sInvestment and Contract Readiness Fund(ICRF) scheme provides one such route tosupport the needs of ambitious socialenterprises looking to scale and grow theirimpact. There may also be a role for grant-giving organisations to help build the supportneeded to create both investment-readyventures and investing-ready investors.Public procurement and social valueMany of the larger-scale opportunities for socialenterprises are in the delivery of publicservices. Central and local government alreadyuse Payment by Results (PbR) contracts,where social ventures can show they add socialvalue by identifying their unique selling points:that their services and interventions can makea real difference to long-term social outcomes,generating potential future savings for thetaxpayer through reduced demand for publicresources. However, there are real challengesto this, not least that the income stream forsuch provision can be very ‘lagged’ and thebenefits may not always be transferred into13JP Morgan (Nov 2010) ‘Impact Investments: Anemerging asset class’14Ibid; Monitor Institute (Jan 2009) ‘Investing forSocial and Environmental Impact’cash savings. Investors, commissioners andsocial ventures have observed with greatinterest the development of one such PbRproduct – the Social Impact Bond (SIB) – toassess whether other social services can bedelivered under such a structure of socialinvestment and public service contract.In Europe, there is wide recognition that whilstthe legislative framework does give room forconsideration of social value in procurement15,the EU’s principle is not uniformly implementedacross member states at local, regional ornational government levels. In the UK, theintroduction of the Public Services (SocialValue) Act 2012, which requires localauthorities “to give greater consideration toeconomic, social or environmental wellbeing”when tendering for contracts should reinforcethis principle. Investors looking to finance socialenterprises which provide public services willexpect to see a commitment to the principles ofsocial value in the procurement process. SocialEnterprise UK has published a guide for localauthorities16on how to engage effectively withsocial enterprises.15As outlined in the EU guide ‘Buying Social’16SE UK (Feb 2012) ‘The Social Enterprise Guidefor People in Local Government’
  • 11. 11We help social entrepreneursraise capitalRaising capital is one of the most important, butdifficult, tasks any entrepreneur faces. Raisingfinance in the social business and enterprisesector is particularly challenging because thepool of social enterprises as well as the pool ofsocial investors is small, and the capacity tocombine financial returns is still relatively underdeveloped. Social investment is dwarfed byother forms of capital flows; for example, in2010 UK social investments were valuedaround £190m, compared with £55.3bn ofwider bank lending, £13.1bn of individual givingand £3.6bn of philanthropic grants17.An organisation might seek investment for avariety of reasons, such as:cash-flow financeworking capitalbuilding up internal capacity/recruitment ofstaff etc.expansion of activities (new activities ormore of existing activities)asset purchasestart-up costsreserve funds/safety net resourcesresearch and development or piloting aninitiativeThe purpose for which the capital will be usedmay influence the type of finance sought. Forexample, a debt-based instrument (e.g. amortgage) may be an appropriate mechanismto fund the purchase of equipment or an asset,whereas financing expansion of activities mightrequire a mixture of financial products, such as17C. Shanmugalingam, J. Graham, S. Tucker and G.Mulgan (Feb 2011) ‘Growing Social Ventures: Therole of intermediaries and investors: who they are,what they do, and what they could become’ YoungFoundationloans, quasi-equity or full equity (see section3.2). Also, the legal form of an organisation willaffect the types of capital it can take. Forexample, a company limited by guaranteecannot issue equity (see section 6.1).When looking for capital to sustain and grow asocial venture, understanding the basic types ofcapital available is essential, including what it isintended to accomplish, the advantages anddisadvantages each type of capital offers, andthe responsibilities it incurs on the investee andthe investor.The following list is a simplified overview of theoptions that are currently available to socialentrepreneurs with specific reference tosources of information which provide moredetailed information.i. DonationDonations are gifts which are typically used forcharitable purposes. For social ventures withclear charitable aims, raising donations fromfamily, friends and wider networks can be aneffective way to garner momentum. Manycharitable social enterprises have usedcrowdfunding platforms to get their projectsmoving (see section 3.3.iv).ii. GrantGrants are donated funds of money, whichunlike conventional donations, typically comewith non-fiscal commitments or conditions thatare placed upon grantees (grant recipients) andagreed prior to receiving the funds18. Grantshave a number, or all, of the following features:Time limited: often between one and threeyears to ensure that the agreed outcomesof the grant are executed.Programme specific: where funds are beingdeployed to enable a clearly definedproject.18For detailed information, see ‘Social investmentmade simple’, KnowHowNonProfit
  • 12. 12We help social entrepreneursraise capitalPerformance based: where funds aresecured only if agreed outcomes ormilestones are achieved by the grantee.Reporting dependent: where grantees areobliged to measure key performanceindicators and report back to the grantor toevidence that funds are being deployedappropriately.A grant, whilst not really a financial investmentbecause of zero prospect of any return, even ofinvested capital, may often come with strictobligations. Grants are primarily made availablein the UK to fulfil charitable and researchpurposes. Typically they are issued bygovernment departments and local authorities,charitable trusts and foundations, andphilanthropists. Historically, grants have been astaple source of funding to charitable socialenterprises, although in recent years economicand political pressures have questioned theefficacy and logic of grant funding as a long-term source of capital for the social enterprisesector.iii. DebtA debt is an obligation (or loan) placed on adebtor (borrower) to repay a creditor (lender)for the capital asset borrowed from them. Debtis usually provided on the condition that therewill be an expected repayment of this capitalover a reasonable period of time. Typically,although not always, the condition of a loanincludes interest: a financial compensation inaddition to the value of the loan.There are many types of debts that fulfildifferent objectives and have a variety offeatures. In the broadest sense, debts fall intotwo main categories: secured and unsecuredloans.Secured loanA loan in which the borrower pledges an asset(property which can theoretically be traded inexchange for money) as collateral (or security)against the value of the loan. The debt is thussecured against the collateral. If the borrowerfails to repay the loan (known as a default) thecreditor takes possession of the asset and maysell it to recoup some or all of the value of theloan.Unsecured loanThe opposite of a secured loan: where therepayment of the debt is not tied to any form ofcollateral. As the lender has no recourse torecoup some, or all, of the value of the loanfrom the borrower in the event of a default,unsecured debt is usually provided with higherlevels of interest. As such, interest levels onunsecured debt are calculated against factorswhich assess the likelihood of the borrower torepay, including the healthiness of cash flow,profitability, and the credit history of theborrower.Types of Debt (an indicative but notexhaustive list):a. Basic loan (term loan or bullet loan).The simplest form of debt financing –where the debtor agrees to pay thecreditor the full sum of the debt borrowed(principal sum) after a fixed period of time,along with the interest (if applicable)calculated as a percentage of the totaldebt per year. The interest may be paid infull on the date the principal sum is due, orstaggered over periodic intervals, such asmonthly or annually. The standardconvention for calculating interest is APR(annual percentage rate).b. Amortising loan or mortgage. A debtpaid down incrementally over a fixedperiod of time. The most ubiquitous form ofan amortising loan is a personal mortgagebut the same principle of fixed paymentsover a specified period of time applies toinsurance premiums, governmentsecurities and corporate bonds. Anamortised loan can be calculated using anamortisation calculator, which uses a ‘timevalue of money’ formula to calculate thepayment schedule.c. Bridging loan. A short-term form of debtwhich is intended as an interim form offinancing before an individual ororganisation can obtain the next stage offinancing. Bridging loans, being short-term,are typically more expensive than othermore conventional forms of debt, and areissued to businesses in the following mainscenarios:To inject enough cash to sustain thebusiness until more significantfinancing or expected source ofrevenue is secured
  • 13. 13We help social entrepreneursraise capitalTo carry a distressed business while asearch for an investor or buyer isconductedAn injection of cash to carry abusiness through the immediateperiod before an expected acquisitionor flotationd. Syndicated loan. Where a debt isprovided by a group of lenders to a singleborrower. This is a common way forbusinesses to access debt financing frombanks and other institutional financialcapital providers.e. Subordinated loan (mezzanine debt). Aform of debt which ranks after other debts– should an organisation run intodifficulties and fall into liquidation orbankruptcy. In other words, a subordinatedloan has a lower priority in a hierarchy ofcreditors, and may, in the event ofliquidation or bankruptcy, not be able torecoup any, some, or all of the value of thedebt that is due. As such, subordinatedloans typically charge higher rates ofinterest conducive with the greater risk thatthe debt is exposed to.f. Bonds. A form of long-term debt which isconverted into securitised debt. The holderof a bond is the creditor, the issuer of abond is the borrower, and the interest iscalled a coupon. A bond is a formalcontract to repay the borrowed money withinterest (the coupon) fixed at certainintervals over time. To issue bonds as along-term source of debt financing requiresa “viable underlying source of revenue withwhich to pay the bond holders. As thisform of finance is still emerging in thesocial sector, there are various types ofbonds in existence.”19iv. EquityEquity is the term used to describe the ordinaryshare capital of a company20. Ordinary sharesare issued to owners of a company inexchange for a nominal value. In order to19For further information see ‘Charitable Bonds’ byKnowHowNonProfit20For detailed information see ‘Social investmentmade simple’ by KnowHowNonProfitincrease the capital in a company, businessesraise equity by issuing shares. The primaryreason for issuing shares in a company,particularly a small company, is to raise morecash to fund the growth of the businesssoperations.Should a company realise profitability, shareinvestors (depending on which types of sharesthey have purchased) are entitled to theirportion of the profits (known as dividends).Should a company fall into financial difficultiesand be declared insolvent or bankrupt, shareinvestors may lose some or all of the capitalthey have invested in the business, as theyhave the last residual claim against thecompanys assets after all other creditors(ranked in order of priority) have been paid.Should a business be sold, ordinary shareinvestors are entitled to their portion of thepayment. Ownership equity of this kind is alsoknown as risk capital.v. Quasi-EquityQuasi-Equity is a type of capital whichcombines the features of debt and equity. It isan unsecured form of debt where the interestan investor is entitled to is tied to the futurerevenue achieved by the company. Unlike aconventional loan, the return on investment isdependent on the financial performance of theorganisation. If performance is poorer thanexpected and revenues are low, quasi-equityinvestors will receive a lower return or perhapsno return at all. If performance is greater thanexpected, a higher return is paid.Quasi-Equity21, often described as a revenueparticipation loan, can be a useful source offinance for organisations with little or nocollateral, and many social enterprises withlegal structures that prohibit or limit thedistribution of share capital. With Quasi-Equity,the investor is rewarded for the greater risktheir unsecured capital is exposed to with thereturns on their investment linked to either thegross revenues or incremental revenuesgenerated by the investee. In this way, Quasi-Equity offers a way for funders and theirinvestee to share the risk and reward of sociallyentrepreneurial activities.21See CAF Venturesome’s case study in usingQuasi-Equity
  • 14. 14We help social entrepreneursraise capitalvi. Community ShareCommunity shares are a form of equityfinancing where shares are issued to localcommunities rather than private investors andwealthy individuals, using the collective capitalof local people to back enterprises andcommunity initiatives. The key to raisingfinance through community shares is access to“actively committed and motivated memberswho recognise the wider benefits ofcommunities investing and engaging in theirsolutions.”22Often the regulation aroundcommunity share issuance is more permissive.vii. Payment by ResultsThe Payment by Results (PbR) financingmechanism is increasingly being used in thecommissioning of public services which createmeaningful social outcomes. By incentivisingsocial outcomes, public service providers(businesses, social enterprises, charities andcommunity groups) are contracted to provideinnovative, often preventative-orientatedinterventions, which tackle pervasive and deep-rooted social problems. Otherwise, the veryinterventions which are understood by charitiesand social enterprises to be the most effectivein tackling social problems may be overlookedin the conventional procurement process.The Social Impact Bond (SIB) is a type ofPbR financing mechanism: “a form ofoutcomes-based contract in which public sectorcommissioners commits to pay for significantimprovement in social outcomes (such as areduction in offending rates, or in the number ofpeople being admitted to hospital) for a definedpopulation.”23Through an SIB, privateinvestment is used to pay for interventionswhich are delivered by service providers with aproven track record. Financial returns toinvestors are made by the public sector on thebasis of improved social outcomes. If outcomesdo not improve beyond an agreed threshold,then investors do not recover their investment.Britain is seen as the international trailblazer inSIBs, of which there are 14 in the UK, including22Community Shares23Social Finance, ‘Social Impact Bonds’the first set up in Peterborough jail24. SIBs haveparticular value as a methodology forevaluating social impact for those socialenterprises working in the criminal justicesystem, supporting vulnerable children, andproviding health, social care, and drug andrehabilitation services. The following are someexamples of SIBs that have been implementedor are in the process of being structured:Under the Peterborough SIB thegovernment issued £5m of SIBs tocharitable trusts and philanthropists. It wascreated by Social Finance, and is used topay for interventions for offenders servingshort prison sentences (less than 12months) at HMP Peterborough. TheMinistry of Justice and the Big Lottery Fundwill pay investors so long as there is ameasured reduction in reconviction rates of7.5% relative to the experience with acontrol group of short-sentence prisoners inthe UK.The Essex SIB will fund a five yearprogramme, run by Action for Children,which will provide intensive support to 380adolescents and their families, focusing on11-16 year olds at the edge of care orcustody in Essex. Social Finance raised£3.1m from social investors, including BigSociety Capital, Bridges Ventures andCharities Aid Foundation, to fund the bond.The investors get a return if the schememeets a target of diverting around 100adolescents from entering care. Thesuccess of the SIB will be judged by thereduction in the number of days theadolescents spend in care, as well as byimproved school outcomes, wellbeing andreduced reoffending. Essex County Councilis the first local authority to award a SIBcontract.In late 2012, the Department of Work andPensions awarded two contracts worth upto £7m to Adviza in the Thames Valley, andTeens and Toddlers in North West England(both social enterprises established bySocial Finance). The Employability SIBswill fund interventions to work with around2,500 14-15 year olds who are24Patrick Wintour (22 Nov 2012) ‘Social impact bondlaunched to help teenagers in care and thehomeless’, The Guardian
  • 15. 15We help social entrepreneursraise capitaldisadvantaged, or at risk of disadvantage,to tackle youth unemployment.Other notable SIBs include The RoughSleeping SIBs addressing homelessness, andCVAA and Baker Tilly SIB to fund adoptionservices for hard to place children.i. Angel InvestorsBusiness angel networks exist to connectwealthy individuals with young, dynamiccompanies looking for finance. In the UK thereis a well-established and vibrant business angelnetwork sector. Angel networks operatinginclude:Advantage Business AngelsAddidi AngelsAngels in the CityBeer and PartnersBeer and YoungCambridge AngelsCentral England Business AngelsCharlotte Street CapitalClearly Social AngelsConnect LondonEntrustEnvestorsThe Funding NetworkGrowth Investment Network WestMidlandsHaloInvent NetworkKeiretsuLINC ScotlandLondon Business AngelsMinerva Business Angel NetworkNortheast Business AngelsNorthwest Business AngelsOxford Early InvestmentOxford Investment Opportunity NetworkQi3 AcceleratorSeedrs LimitedSilicon Beach Business AngelsSWAIN (South West Angel and InvestorNetwork)Thames Valley Investment NetworkWK Capital LLPWren CapitalYorkshire Association of Business AngelsXenosUK Business Angels Association is amembership body representing many suchnetworks in the UK.However, there are very few angel networksthat focus specifically on the needs of socialbusinesses and enterprises and connect themwith angel investors and venture philanthropistswho wish to make social investments. Weexpect that this may change in the comingyears as the social business and enterprisesector develops and investors increasinglybegin to see the advantages in social investingboth from an intellectual perspective and due toa personal motivation to address social andenvironmental inequities. Until then, this area ofsocial finance is relatively immature andpractitioners are in short supply. Below is a listof angel networks providing capital to socialentrepreneurs and intermediaries connectinginvestors with a focus on sustainability andsocial impact:AddidiPioneers“Addidi Pioneers are a group of like-minded individuals who want to Make aDifference (MAD) by using a proportion of their wealth to invest in sustainableprojects that provide a social return, as well as projects that ‘do good’.”Focus: This network comprises of women investors who seek to invest in ormake sustainable grants to charitable projects or enterprises that develop skills
  • 16. 16We help social entrepreneursraise capitaland help create self-sufficiency.Key Requirements: Organisations that are working towards becomingsustainable and who measure their outcomes clearly.Deal Size: Not specified. Could include non-financial support.ClearlySocialAngelsThe Clearly Social Angels (CSA) network is managed by ClearlySo. It isdesigned to facilitate the flow of capital into extraordinary businesses which helpto create positive social change.Focus: Entrepreneurs with compelling and innovative solutions to social andenvironmental problems.Key Requirements: Businesses should have a strong business proposition, acredible leadership team, be able to demonstrate positive social impact as wellas a clear description of the social or environmental issue being addressed bytheir business, and provide evidence of their ability to generate positive financialreturns and strong opportunities for growth.Deal Size: £500,000 to £2m but reviewed on a case by case basis.Go Beyond Go Beyond is particularly interested in supporting “entrepreneurs with products,services or business models that adhere to the principles of Triple Bottom LineBusiness Sustainability: People, Planet, Profit.”Focus: Environment, health, education, food, housing, services, technology orluxury. No biotechnology or pharmaceuticals.Key Requirements: Organisation must be based in France, Switzerland, the UK,Italy, Poland, neighbouring EU countries or the US.Deal Size: €100,000 to €2m.Investors’Circle(US)Investors’ Circle “is a network of angel investors, venture capitalists, foundationsand family offices that are using private capital to promote the transition to asustainable economy.”Applications are accepted on a rolling basis.Focus: Energy and environmental solutions, sustainable consumer products,sustainable agriculture, community and economic development, healthcare,biotech and wellness, social media and software.Key Requirements: Applicants should be past the concept stage and beinterested in maximising social and environmental impact as well as financialreturn. It specifically encourages minority-group and female entrepreneurs toapply.Deal Size: $250,000 average invested sums, but investors can be a part of alarger raise.
  • 17. 17We help social entrepreneursraise capitalPymwymic Put Your Money Where Your Mouth Is Community (Pymwymic) convenes thelongest-running angel investor group in Belgium, the Netherlands andLuxembourg (see section 3.3.viii).Focus: Advises individuals and families on impact investments in private equityand matches impact investors with social enterprises.Key Requirements: Young companies and funds that will sustain theenvironment, improve global health and create social resiliency.Deal Size: Not specified.SocialImpact Co-InvestmentFundThe Social Impact Co-investment Fund is managed by Finance South East(FSE), with Resonance as lead partner, and is supported by Nesta andPanahpur. It was established to increase the supply of funding for early stagesocial impact businesses through encouraging angel investors to invest inprojects with social purpose which are also financially viable. The fund will makeloans to enterprises alongside and subject to an equivalent amount of angelinvestment.Focus: Enterprises which operate with a primary social purpose.Key Requirements: Businesses should be able to demonstrate social impact aswell as the ability to service debt and generate adequate returns for investors.The social impact must be delivered primarily in the UK.Deal Size: Loans of between £25,000 and £100,000 repayable over one to fiveyear terms.Toniic Toniic, represented by ClearlySo in the UK, operates globally and will considerinvestments in “transformational entrepreneurs, enterprises and fundsaddressing the fundamental needs of people and planet”, with no requirementson country or region.Focus: Healthcare, water sanitation, education, environment, housing andpoverty.Key Requirements: Must be addressing social and/or environmental needs.Deal Size: Enterprises and funds seeking between $50,000 and $3m.ii. Social Venture CapitalSocial venture (and philanthropy) capital differsfrom mainstream capital in that it aims to investin the debt and equity of companies that aregenerating positive social impact, with varyingrequirements of the level of financial returnssought. Typically, this capital is available tosocial businesses and enterprises (with aproven business model and trading history)seeking growth capital, but there are instanceswhere ambitious start-up social enterpriseshave secured finance via this route. Below is acomprehensive list of organisations operating inthe field.
  • 18. 18We help social entrepreneursraise capitalAllia Allia is a charitable social investment intermediary that creates investmentvehicles to raise finance for organisations delivering social impact. It hasdeveloped The Allia Charitable Bond which enables individuals to make anethical, fixed-return investment where the gross interest can be given as adonation to an organisation of choice. Through Allia, supporters can financiallysupport a social enterprise whilst still receiving their initial investment back in full,once the bond has matured.Focus: Poverty, unemployment, work-limiting illness or disability, familybreakdown and homelessness in developing or developed countries.Key Requirements: Must be a legally constituted organisation with charitablestatus or a not-for-profit organisation for public benefit.Size of fund: Over £20m to date.Deal Size: £100 minimum investment, but individual specific.Investees: Arcubus, Community Links, Queen Elizabeth Hospital Birmingham,Scope, Tomorrow’s People25.Big IssueInvestBig Issue Invest (BII) is a specialised provider of finance to social enterprisesand trading arms of charities in the UK that are finding business solutions thatcreate social and environmental transformation. It operates the Social EnterpriseInvestment Fund (see section 3.3.x); it does not provide grants but offers debt,participation loans (quasi-equity) and equity. BII also runs a loan fund.Focus: Job creation, education, training, health and social care, social andfinancial inclusion, environment, community development and social housing,and homelessness.Key Requirements: Must be UK-based social ventures that have beenoperating for at least 24 months (newer businesses are considered on a case bycase basis).Size of fund: £10m to date.Deal Size: £50,000 to £1m in loans, equity or quasi-equity, and may syndicatewith other social investors for investments in excess of £1m.Investees: Jamie Oliver’s Fifteen, 4Children, Cool2Care, Barnardos, HCTGroup, Pathfinder Healthcare Developments, SCA Healthcare, Turning Point,War Child26.Big SocietyCapitalBig Society Capital (BSC), launched in April 2012 by government, is anindependent financial institution authorised and regulated by the FSA.Focus: Developing and shaping a sustainable social investment market in theUK, thereby giving organisations tackling major social issues27access to newsources of finance to help them grow.25Allia’s charitable bonds causes page26BII portfolio page
  • 19. 19We help social entrepreneursraise capitalKey Requirements: Must be a UK-registered social investment financeintermediary (SIFI)28that provides investment and other support to social sectororganisations that primarily benefit people and communities in the UK.Size of fund: £600m to date29. During 2013, BSC has set a target of investingbetween £75m and £100m in new projects.Deal Size: £500,000 to £15m.Investees: To date, BSC has committed £56m worth of investments to 20 socialinvestment projects; this includes six social impact bonds and an array of socialenterprise funds30.BridgesVenturesBridges Ventures is a sustainable growth investor which seeks to financebusinesses which deliver both financial returns as well as social andenvironmental benefits.See below for funds currently managed by Bridges.SocialEntrepreneursFundThe Bridges Social Entrepreneurs Fund “aims to address the funding gap oftenfaced by fast growing social enterprises looking to scale”. This fund offers flexibleand tailored investment in the form of quasi-equity and equity for fast growingUK-based social enterprises. It does not offer grants.Focus: Businesses with a clear social mission and demonstrable ability to scale.Key Requirements: Must have the ability to generate surpluses to repayfinancing and must be operating in England.Size of fund: £11.5m.Deal Size: Up to £1.5m.Investees: Action for Children, Teens and Toddlers, New Horizons Programme,Community Links, Care and Share Associates, HCT Group, Call Britannia.SustainableGrowth FundsFocus: Education and skills, vocational training, leisure and hospitality,consumer products and services, business and financial services, manufacturingand distribution and environmental protection.Key Requirements: Must operate in the 25% most deprived wards in the UK, asdefined by the Indices of Multiple Deprivation and listed on its website.Size of fund: Part of overall £275m under management across all its funds.27BSC invest in SIFIs providing investment and support to social sector organisations in the following areas:financial inclusion, education, employment and skills, housing and shelter, mental health, physical health, socialcohesion and well-being28SIFIs are organisations that provide affordable finance and support to social ventures. By supporting SIFIs togrow and become more sustainable they will be able to bring millions more in investment into the social sectorthan BSC could bring alone. This means that, over the long term, the social sector will have access to reliablesources of appropriate and affordable finance.29£400m from unclaimed assets and £200m from four high street banks (RBS, Lloyds, HSBC and Barclays – seesection 3.3.vi)30BSC investments case studies
  • 20. 20We help social entrepreneursraise capitalPortfolio in 2011 held investments in 35 companies totalling £75.2m.Deal Size: £500,000 to £10m.Investees: Carduus, cloud.IQ, Historic Futures Limited, Ardenham Energy, ChillFactor, School Stickers, New Career Skills.SustainableProperty FundThe Bridges Sustainable Property Fund invests in properties in regenerationareas and environmentally sustainable buildings. It seeks strong financial returnsas well as delivering social and environmental impact through its propertyinvestments.Focus: Environmentally sustainable buildings (all UK property sectors).Key Requirements: Must be in eligible local authority, as defined by the Indicesof Multiple Deprivation and listed on its website.Size of fund: Part of overall £275m under management across all its funds.Deal Size: None specified.Investees: The Curve, Elmbridge Court, The Office, Smart Storage, The Hoxton,Credential, Whelan Refining.Deutsche BankImpactInvestmentFundThe Impact Investment Fund is as a fund of funds, investing in social investmentintermediaries that on-lend to social enterprises and charities.Focus: Employment, education and training, and social and financial inclusion.Key Requirements: Investments will be centred around three of its five globalCSR pillars: education, sustainability and social investments.Size of fund: £10m fund31. Investments will be made over three years, startingin 2011, and repaid over 10 years.Deal Size: Not specified.Investees: Big Issue Social Enterprise Investment Fund L.P., Bridges VentureIII.Finance SouthEastFinance South East (FSE) manages a series of funds and offers capital raisingsupport to investment ready businesses who can demonstrate the potential forsignificant growth. FSE also provides training, consultancy and assistance inaccessing both funding and expertise. The FSE Group operates funds totalling£33.6m. FSE Adimpetus Enterprise Investment Scheme (EIS) Fund specificallysupports start-ups which offer tax relief to equity investors. The following fundsare the most socially-oriented.CommunityGeneration FundThis is a national fund that was established in order to support the developmentof community-owned renewable energy. Both development and constructionloans are available.31£2m of the Fund already invested as of February 2013
  • 21. 21We help social entrepreneursraise capitalFocus: Community energy in England, Wales, Scotland and Northern Ireland.Key Requirements: Main beneficiaries should rank within the 50% mostdeprived locations, as listed in latest available Indices of Deprivation(applications within the 20% most deprived locations are particularlyencouraged).Deal Size: Specific loan size not stated, but expected project size includesfeasibility/pre-planning costs of £20,000 to £150,000 maximum (depending ontechnology and scale) and construction costs of £250,000 to £2m maximum.Investees: None specified.Social Impact Co-Investment FundThe Social Impact Co-Investment Fund is managed in partnership withResonance. See section 3.3.i for details.South EastSustainability LoanFundThe South East Sustainability Loan Fund provides debt funding which must bematched against a publicly funded debt fund (Primary Loan Fund).Focus: High growth potential businesses which are developing or selling aproduct or service aimed at reducing carbon emissions.Key Requirements: Must be operating in South East England, excludingLondon.Deal Size: Loans of between £20,000 and £200,000 (on a matched basis).Investees: None specified.Key Fund The Key Fund is a social enterprise offering secured and unsecured loans,grants, equity and quasi-equity for property, asset and equipment purchases,working capital, development capital, risk capital and for other businesspurposes.Focus: Social enterprises, charities, voluntary and community organisations,social businesses, and co-operatives or mutuals.Key Requirements: Must be operating in the East Midlands, North East, NorthWest, Yorkshire or the Humber.Deal Size: £2,500 to £150,000.Investees: Bransholme Community Childcare, Chapeltown Baths CommunityBusiness, Eyes Open Creative, Newlands Community Association.Resonance Resonance works specifically with UK social enterprises to ensure that they havethe finance required to grow and develop and that they are ready to seek andsecure investment. Resonance also manages a range of loan funds which socialenterprises can access, listed below.Affordable HomesRental FundThe Community Land Trust (CLT) Affordable Homes Rental Fund wasestablished in response to the growing number of community groups looking tocreate affordable local rental housing, in areas where property prices prevent
  • 22. 22We help social entrepreneursraise capitalmany local people from being able to afford accommodation. The fund is beingdeveloped in partnership with Community Land and Finance. It is hoped thatoffering 100% of the capital required to finance new builds will enable theseorganisations to manage community housing and offer affordable rental housingin their local areas.Focus: Any CLT or other community-led group seeking finance for affordablerental housing.Key Requirements: The planning consent must include a suitable Section 106Agreement32and a mortgagee-in-possession clause.Size of fund: £2.5m target fund size.Investees: None specified.Community ShareUnderwriting FundCommunity share issues are an effective way of mobilising retail investors toback social enterprises that they have a connection with, e.g. to acquire pubsand village shops, for affordable housing, sustainable energy and communityforestry/agriculture initiatives.Projects approved for support from the fund will be able to draw down up to 50%of the community share issue target, with the benefit of advertising thisunderwriting support on launch of the share issue. This is designed to boostconfidence among potential retail investors and encourage higher take-up of theshares.Focus: Community projects of all types which are planning to raise capitalthrough a community share issue.Key Requirements: Project fundraising target between £100,000 and £1m.Size of fund: £2m target fund size.Deal size: £25,000 to £500,000 (average size expected to be £300,000).Investees: None specified.Real LettingsProperty FundResonance is working alongside Broadway, a London homelessness charity, todevelop The Real Lettings Property Fund. This will be the first property fund tobuy accommodation to support homeless people.The fund will seek to bulk buy units from developers and landlords, then leasethem to Real Lettings who will guarantee rent and take on management andmaintenance risk, helped by the specialist residential developer United House. In2013 the fund aims to raise £30m from a growing pool of impact investors,mostly housing associations and charitable foundations.Social Impact Co-Investment FundThe Social Impact Co-Investment Fund is managed in partnership with FSE. Seesection 3.3.i for details about this fund.32s106 Town and Country Planning Act 1990 allows a local planning authority to enter into a legally-bindingagreement or planning obligation with a land developer over a related issue.
  • 23. 23We help social entrepreneursraise capitalSocialEnterpriseLoan FundThe Social Enterprise Loan Fund provides loans exclusively to organisationsoperating with a charitable purpose.Focus: Organisations operating in one of the 25% most deprived boroughs inEngland.Key Requirements: Must demonstrate the ability to repay loans without creatingfinancial difficulties.Size of fund: Not specified.Deal size: Working capital loans of up to £50,000, fixed asset loans of up to£100,000 and land and building loans of up to £250,000.Investees: Dove Recycling, Sunlight Development Trust, Unique Coffee Bar,Whole School Meals.Social ImpactVentureCapital TrustThe FSE Group (FSE) and Social Finance launched the first ever Social ImpactVenture Capital Trust (VCT) to raise up to £20m of onward investment in socialenterprises and socially-motivated businesses. It is the first diversified,professionally managed, fully listed social investment product available for UKretail investors. Social Impact VCT will be jointly managed by FSE via its FSA-authorised subsidiary, FSE Fund Managers and Social Finance.Focus: Social enterprises and socially-motivated companies that engage withpeople who are marginalised, vulnerable or disadvantaged, work in localcommunities to support cohesion, promote socially motivated brands andimprove health and education provision.Key Requirements: Must be established, socially-driven companies looking toexpand their geographic or product reach and/or whose revenues areunderpinned wholly or partially by confirmed delivery contracts. It will not investin start-ups. Example companies include HCT Group (bus and communitytransport provider), Bromley Healthcare (social care company) and CareersDevelopment Group (Welfare to Work employment contractor).Size of fund: £20m target fund size.Deal size: Not specified.Investees: Not specified.SocialInvestmentScotland(CDFI)Social Investment Scotland (SIS) provides business loan finance to charities,community organisations and social enterprises that might find it difficult toaccess finance from mainstream providers. Repaid loans are recycled to providefurther support to other organisations and rates are fixed throughout the loanperiod. It offers all-purpose loans, bridging loans and property loans (propertyloans are offered in partnership with Triodos Bank (see section 3.3.v).Focus: Third Sector organisations (charities, community and voluntaryorganisations, not-for-profits and social enterprises) operating in Scotland.Key Requirements: Any profits made by an organisation must be reinvested forcommunity benefit.Size of fund: Not specified.Deal Size: £10,000 upwards. Assistance with buying property may be
  • 24. 24We help social entrepreneursraise capitalconsidered in some circumstances (maximum loans of £250,000). Loans arerepayable over a maximum of ten years.Investees: Udny Community Wind Turbine Co, Glasgow City Mission, RecycleFife, Fare, Callander Youth Project33.TruestoneGlobal ImpactFundTruestone Impact Investment Management runs a Global Impact Fund whichfocuses on delivering market rate returns from social and environmentalinvestments in the UK, Africa and Asia. The fund offers a long-term investment,50% of which is held in private equity and the remaining 50% in open liquidstructure34.Focus: Social and environmental projects in the UK and globally.Key Requirements: Offer profit-seeking investments where the managers alsoaim to generate social and environmental benefits.Size of fund: £10m.Deal Size: £25,000 minimum. No maximum.Investees: None specified.33Social Investment Scotland case studies34A detailed overview of the Fund is given in the Global Impact Fund Summary
  • 25. 25We help social entrepreneursraise capitaliii. Venture Philanthropy CapitalThis type of capital focuses on the socialreturns generated by its support and investorsare characterised as ‘impact first’ in theirperspectives. Typically, the original capital isprovided on a philanthropic basis, but financefrom the fund to organisations may either beoffered as a grant or on a repayment basis.Venture philanthropy often combines financewith mentoring and other support services (seesection 4).Acumen Fund The Acumen Fund uses donated capital to invest in businesses that addressthe needs of those at the ‘base of the pyramid’ (BoP). The fund offers patientcapital in a range of financial instruments including debt, equity and quasi-equity.Focus: Water, health, agriculture, energy, housing or education in EastAfrica, West Africa, India or Pakistan.Key Requirements: Must demonstrate social impact, financial sustainabilityand ability to scale.Finance Available: $300,000 to $2.5m.Type of Finance: Debt (predominantly), quasi-equity and equity.Investees: Waterhealth International, Jassar Farms, Books of Hope35.CAFVenturesome“CAF Venturesome provides affordable loans to charities, social enterprisesand community groups when grants may not be available and access totraditional financial institutions is difficult.”It also runs the CAF Social Impact Fund: a social investment fund thatprovides debt and equity-like finance, often to provide working or bridgingcapital, to help charities and social enterprises deliver on their mission. Todate, the CAF Social Impact Fund has offered 25 loans, with growing supportfrom CAF Charitable Trust clients36.Focus: Debt-based or quasi-equity finance for charities, social enterprisesand community groups.Key Requirements: Organisation must be UK-registered but activities canbe anywhere in the world, must have clear charitable purpose and socialimpact (though does not need to be a registered charity), and must giveevidence of at least one year of income (whether from donations or trading)Finance Available: £25,000 to £250,000.Type of Finance: Secured and unsecured loans and quasi-equity.Investees: Motivation, KIDS, Interhealth, Torridge Training37.35Acumen Fund portfolio36CAF Social Impact Fund July to September 2012 Report37CAF investees case studies
  • 26. 26We help social entrepreneursraise capitalCANBreakthroughCAN Breakthrough “provides grant funding and management support to helpestablished social enterprises scale up and maximise their social impact.”This fund is currently closed to applications.Focus: Charitable social enterprises.Key Requirements: Organisations with a minimum turnover of £500,000,three years’ trading history and a scalable business model.Finance Available: £25,000 to £200,000.Type of Finance: Grant.Investees: VoiceAbility, Cool2Care, HCT Group, FareShare, Teach First,Training for Life, Belu Water, WebPlay, British Youth Council, Build Africa38.Impetus – thePrivate EquityFoundationImpetus Trust and the Private Equity Foundation are merging to form a newcharity, Impetus – the Private Equity Foundation. The new entity will focus onenabling charities to help society’s most deprived children and young people.It will be able to spend between £10m and £12m on programmes every year,and have the flexibility to commit more pro bono business skills andmanagement expertise, alongside funding, to charities or social enterpriseswhile still backing a wider portfolio of organisations that show potential.Impetus and PEF hope to launch the completed merger in spring 2013.Impetus Trust Impetus Trust invests financial and human resources in charities and socialenterprises that address economic disadvantage and poverty. It does notinvest in individual projects but into building up the overall capacity oforganisations.Focus: Charities and social enterprises.Key Requirements: UK-registered charity or social enterprise helping thepoorest 20% of the UK population, with a minimum turnover of £250,000 andat least three years’ trading history.Finance Available: £50,000 to £500,000.Type of Finance: Grant.Investees: Ripplez, IntoUniversity, Working Chance, Blue Sky39.The Private EquityFoundationThe Private Equity Foundation (PEF) was established to support children andyoung people in achieving their full potential.Focus: Charities and social enterprises reducing the number of young peoplenot in education, employment or training (NEETs), particularly organisationsdelivering government services under PbR contracts.Key Requirements: Social enterprises that work with NEETs.38CAN supported organisations39Impetus Trust portfolio
  • 27. 27We help social entrepreneursraise capitalFinance Available: Not specified.Type of Finance: Grant and equity.Investees: City Year, Skills Force, ThinkForward, Place2Be40.InspiringScotlandInspiring Scotland uses philanthropic capital to provide long-term funding anddevelopment support for charities based in Scotland. Within any one of itsthematic funds, it develops a partnership of complementary organisations.Grants are paid out as milestones are reached.14:19 Fund The 14:19 Fund is aimed at increasing the number of young people who areable to make the transition into further education, training or employment afterleaving school.Focus: Organisations supporting young people after leaving school.Key Requirements: Ventures working to reduce the number of people notmaking a successful transition from school.Finance Available: Determined on a case by case basis.Type of Finance: Grant.Investees: Hot Chocolate Trust, Street League, Move On41.Early Years EarlyAction FundThe Early Years Early Action Fund is delivered in partnership with theScottish Government and aims to enable vulnerable young children toachieve their potential through supporting voluntary organisations whoprovide services for children and their families.This fund closed for applications in July 2011.Focus: Organisations providing services to young children and their families.Key Requirements: Not specified.Finance Available: Not specified.Type of Finance: Grant.Investees: Barnardo’s Scotland, Smart Play Network, Circle42.Go2Play The Go2Play Programme is an initiative to invest in play organisations inScotland that provide opportunities for young children in disadvantagedcommunities.Focus: Organisations with new ideas for providing play services that willpositively impact children in Scotland.40PEF portfolio4114:19 Fund portfolio here42Early Years portfolio
  • 28. 28We help social entrepreneursraise capitalKey Requirements: Please refer to the Go2Play criteria document.Finance Available: Up to £15,000.Type of Finance: Grant.Investees: Jeely Piece Club, Playbusters, The Zone43.Link Up Link Up aims to develop opportunities for communities to come together andencourage mutual community support, particularly in deprived areas. Link Upis working in partnership with a host organisation in each community.Focus: Deprived communities in Scotland.Key Requirements: No further requirements specified.Finance Available: Determined on a case by case basis.Type of Finance: Grant.Investees: Larkfield Community, hosted by Action for Children44.LGT VenturePhilanthropy“LGT Venture Philanthropy supports organisations in their growth andexpansion phase which implement an effective solution to a social orenvironmental problem”.Focus: Organisations in Latin America, Africa, India, Southeast Asia, Europeand China that work in education, health, nutrition, renewable energy,resource management, water, and markets for social investments.Key Requirements: Organisations must have a proven model, anestablished track record and be looking to scale their impact.Finance Available: $200,000 to $1m.Type of Finance: Grant and equity.Investees: CO2 Bambu, Educate Girls, Rags2Riches, streetfootballworld45.Impact VenturesUKBig Society Capital has committed £10m to Impact Ventures UK (IVUK), across-sector impact investing fund co-founded by Berenberg Bank andmanaged by LGT Venture Philanthropy, providing growth capital to socialenterprises in the UK.Launching soon.Shared Impact Shared Impact is a newly-launched debt re-financing platform to supportcharities and social enterprises using venture philanthropy funds. Please seeits website for more details as they emerge.43Go2Play portfolio44LinkUp portfolio45LGT portfolio
  • 29. 29We help social entrepreneursraise capitalKey Requirements: Not specified.Finance Available: £20,000 to £250,000.Type of Finance: Loans (unsecured and secured) and quasi-equity.Investees: Not specified.SocialBusiness TrustSocial Business Trust works with social enterprises capable of scaling uptheir operations on a regional and national level to become investment readyand attract funds from its corporate partners. Through its corporate partners,the Social Business Trust works with social enterprises to take a long-termview towards financial sustainability, skills development, due diligence, andinvestment. The trust aims to invest in five social enterprises per year.Focus: To help transform the impact of social enterprises and therebyimprove the lives of over a million of the UK’s most disadvantaged people.Key Requirements: Predominantly UK-based registered charities ororganisations that demonstrate a clear charitable purpose that help at least1,000 people a year through its goods or services (directly or indirectly), havea minimum turnover of £1.5m and at least one year’s trading history.Finance Available: £10m of cash and in-kind support over three to fiveyears.Type of Finance: Grant.Investees: Timewise, Inspiring Futures, Bikeworks, London Early YearsFoundation46.VenturePartnershipFoundationThe Venture Partnership Foundation (VPF) works exclusively with socialenterprises to help facilitate growth in order to maximise social impact throughfunding and professional guidance from the private sector.Focus: High impact social enterprises.Key Requirements: Organisations with a proven concept which addresses asocial need, nearing growth stage and prepared to engage in partnership withother members.Finance Available: Grant between £15,000 and £35,000 per annum for threeto five years, and social investment (estimated amount is not specified).Type of Finance: Grant and investment.Investees: MyBnk, Beatbullying, Homeless International, Riders for Health47.46Social Business Trust portfolio47VPF portfolio
  • 30. 30We help social entrepreneursraise capitaliv. CrowdfundingCrowdfunding (or crowdfinancing, crowdsourcing) is where individuals and organisations raise fundsand/or leverage support from their friends, professional networks and the wider public. Throughcollective cooperation and the pooling of small sums (whether through non-financial pledges,donations, revenue sharing arrangements, debt finance or equity investments), crowdfunders use thegoodwill, excitement, and enthusiasm for their endeavour to raise funds and support from as manypeople as possible. This process of ‘democratising finance’ is increasingly used for a variety of socialand cultural causes from humanitarian relief, political campaigns, micro-finance, artists seekingpatronage, to fans buying stakes in their sports clubs, citizen journalism or funding a start-up socialventure.The Financial Services Authority (FSA) regulations governing lending and borrowing throughcrowdfunding are complex and developments in the sector are changing at pace. Thus, beforeconsidering this route as a finance mechanism for your social venture, it is well worth seeking legaladvice where necessary. The European Crowdfunding Network48(ECN) and the EuropeanCrowdfunding Association49(ECA) united in November 2012 to become one single body that intendsto foster a transparent environment for crowdfunding within the EU. This sole European body willallow for an improvement in customer protection standards and will help contribute to a growth ofopportunities for crowdfunding platforms trading within the EU.The following list of platforms illustrates the rapid growth of this mechanism. To learn more about thisfield visit Crowdsourcing.org.33needs “People powered investing.”Region: Global (US bias).Industry: Any.Focus: Investments for social ventures, particularly revenue share deals andgifts or exclusive deals in kind.Abundance “The first regulated community investment platform that makes it possible forpeople to earn cash return by investing in renewable energy projects in the UK.”Region: UK.Industry: Renewable energy.Focus: Linking up communities and individuals with renewable energy projects.Babyloan “The first European social micro-lending platform.”Region: Global.Industry: Small businesses.48ECN was formed in 2011 by crowdfunding industry professionals and platforms, in order to bring the EuropeanCrowdfunding Stakeholders together. It has local representation (so-called Ambassadors) in more than 10countries in Europe, and gathers crowdfunding platforms and subscribers from the entire EU.49ECA was conceived in early 2012 by a group of entrepreneurs and investors with the intention of providing aunified voice promoting crowdfunding as a source of capital to support the development and growth of for-profitbusinesses, social enterprises and other projects.
  • 31. 31We help social entrepreneursraise capitalFocus: Generating micro-loans to support small scale businesses.Bank to theFuture“The world’s first ‘peer-to-peer’ market to allow businesses to raise debt, equityor donations from consumers and investors in one place.”Region: Any.Industry: Any.Focus: Bringing finance and investment to entrepreneurs, business andinvestors.Better Place “betterplace.org is a large online donation platform.”Region: Global.Industry: Any social sector organisation.Focus: Providing a fundraising platform for social sector projects.Buzzbnk “Positive people backing great ideas.”Region: UK bias.Industry: Any social venture organisation.Focus: Raising donations and loans, as well as non-financial support for socialventures.CrowdCube “The world’s first equity-based crowdfunding community dedicated to businessinvestment.”Region: UK.Industry: Any.Focus: Raising equity for UK businesses.CrowdMission “The world’s first equity-based crowdfunding platform for socially-drivenbusinesses.”Launching soon.Region: UK.Industry: Social and environmental.Focus: Raising equity for socially-driven businesses.
  • 32. 32We help social entrepreneursraise capitalEthex “Non-profit ethical investment club.”Region: UK.Industry: Ethical businesses with share capital.Focus: Generating equity investment for ethical businesses.JustGiving “The UKs first online fundraising business.”Region: UK.Industry: Any.Focus: UK-registered charities or organisations with a GiftAid number,including schools, churches, community amateur sports groups and scout andguide groups.Funding Circle “Fast, flexible business loans.”Region: UK.Industry: Any.Focus: £5,000 to £500,000 fully flexible business loans for well-established UKbusinesses.Indiegogo “The world’s funding platform.”Region: Global.Industry: Any.Focus: Raising funds for campaigns.Kickstarter “Fund and follow creativity.”Region: US and UK.Industry: Creative and media.Focus: Artists, designers, filmmakers, musicians, journalists, inventors,explorers, etc.Kiva “Loans that change lives – connect people through lending to alleviate poverty.”Region: Global.Industry: Any.Focus: “Empowering people around the world with a $25 loan.”MarketInvoice “Flexible working capital finance – on the best terms.”
  • 33. 33We help social entrepreneursraise capitalRegion: UK.Industry: Any.Focus: Companies generating revenues between £250,000 and £50m.PleaseFund.Us “Fundraising for creative ideas.”Region: UK.Industry: Creative.Focus: Music, film, fashion, technology, publishing, etc.Seedrs “Makes investing in start-ups simple and rewarding.”Region: UK.Industry: High-growth technology-driven ventures, retail stores, restaurantsand professional services firm.Focus: Raising up to £150,000 in equity capital for new businesses.Spacehive “Spacehive helps communities transform their local public spaces.”Region: UK.Industry: Projects for the community.Focus: Projects based in a public space or somewhere freely accessible to thecommunity.Sponsume “A creative way of funding creativity.”Region: Global.Industry: Creative.Focus: Raising funds and support for creative and entrepreneurial projects.Start SomeGoodConnects social entrepreneurs, changemakers and not-for-profit organisationswith people who want to help.Region: Global (US bias).Industry: Any.Focus: Raising donations and support for social entrepreneurs with brightideas.Ulule “Make good things happen.”Region: Global (Europe bias).
  • 34. 34We help social entrepreneursraise capitalIndustry: Creative, innovative or community-minded projects.Focus: Raising funds for creative and innovative projects50.Zopa “A marketplace for money.”Region: Global.Industry: Any.Focus: Peer-to-peer lending.v. Social Banks and Ethical LendersThere are certain lenders who seek to provide finance to those organisations which aim to make adifference to society and focus on lending to businesses established in disadvantaged areas, and/orto charities, voluntary organisations, community groups, social enterprises and businesses.One such group of lenders is Community Development Finance Institutions (CDFIs) which lendmoney to businesses, social enterprises and individuals who struggle to get finance from high streetbanks and loan companies. They help deprived communities by offering loans and support at anaffordable rate to people who cannot access credit elsewhere.51There are over 50 CDFIs spreadacross the UK. The Community Development Finance Association (CDFA) is the umbrella body forCDFIs and provides a comprehensive resource on their website to help you find the rightorganisations to contact for your social venture. Investors into CDFIs may benefit from CommunityInvestment Tax Relief.Visit the Finding Finance resource tool for more information on CDFA lending.The Global Alliance for Banking on Values is an independent network of banks using finance todeliver sustainable development for unserved people, communities and the environment.Additional social and ethical lenders, some of which are also CDFIs, include:Charity Bank “Charity Bank finances social enterprises, charities and community organisations,with the support of depositors and investors who want to use their money tofacilitate real social change, while earning a financial return.” The bank’s ultimatemission is to maximise impact on society, not to maximise profit.Focus: Third sector organisations requiring funds to further social change52.Key Requirements: Organisations that are constituted with social objectives andare non-profit distributing to private individuals; or for-profit companies if the loanis exclusively for charitable purposes.Deal Size: £50,000 to £1m loan funding (larger facilities may be arranged inpartnership with other lenders).50Ulule successfully funded projects51Community Development Finance Association52Charity Bank 2012 portfolio
  • 35. 35We help social entrepreneursraise capitalEcologyBuilding SocietyThe Ecology Building Society provides specialist mortgages for projects whichminimise environmental impact or help promote sustainable living.Focus: Environmental organisations using green techniques or carrying outrenovations in a sustainable manner53.Key Requirements: Established businesses, registered charities and voluntaryorganisations, community-owned enterprises, fair-trade businesses andecological property developers. It will not provide loan finance to start-ups.Deal Size: £1m maximum.Shared Interest Shared Interest is an ‘ethical investment co-operative’ providing finance tobusinesses in Europe, the US, Australia and the developing world. It is currentlythe world’s only 100% fair-trade lender.Focus: Loan finance and credit facilities to fair-trade producers and buyers54.Key Requirements: Businesses should be members of WFTO (or a local orregional affiliate) or FLO-certified, have at least three years’ trading history and apositive balance sheet.Deal Size: Loan sizes are not outlined, but there are limits on how much can belent to certain regions, countries or products, which will determine the loan size atthe time of any one application.TriodosTriodos is a socially-driven bank, investing solely in ethical businesses, socialenterprises, charities, and community and voluntary groups that deliver positivesocial, environmental and cultural change. As of February 2012, Triodos haslending and commitments in excess of £625m, making its social banking activitiesthe most extensive in the UK.Focus: Individuals and organisations striving for a more sustainable futurethrough nature and the environment, culture and society, or social business55.Key Requirements: Organisations that benefit society and the environment.Deal Size: £25,000 to £15m loan funding per project (may consider largeramounts on a case by case basis) and equity investments in sustainablebusinesses through ‘Triodos EIS Fund’56and renewable energy opportunitiesthrough ‘Triodos Renewables’57.53Ecology Building Society commercial mortgage portfolio54Shared Interest portfolio55Triodos portfolio56Triodos EIS Fund portfolio57Triodos Renewables portfolio
  • 36. 36We help social entrepreneursraise capitalUnity TrustBankUnity Trust Bank is a specialist provider of financial services to civil society, socialenterprises, councils, trade unions, community interest companies (CICs)58andsmall businesses. It provides a diverse range of flexible financial products andservices, from bridging loans to property development funding.Focus: Civil society, social enterprises, CICs, councils and trade unions.Key Requirements: Some loans require organisations to be a registered charity,umbrella organisation or development organisation.Deal Size: £250,000 to £6m loan funding.Please also cross-refer to Social Venture Funds in section 3.3.ii and the following section onCommunity Banking for additional sources of social and ethical lending.vi. Community BankingThere has been an increase in the level of engagement in providing finance to organisationsgenerating social impact from the mainstream banks recently. Under the terms of Project Merlin,Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have agreed to invest permanentequity of £50m each in Big Society Capital (BSC) (see section 3.3.x) They made this commitment inthe context of wider discussions (known as the ‘Merlin’ agreement) with the government on“increasing their positive contribution to society and to economic recovery”. Specific social funds andinitiatives of retail and investment banks are listed below.BarclaysCommunityFinance FundThe Community Finance Fund aims to provide CDFIs with the capacity todeliver affordable credit to SMEs that are otherwise unable to obtain credit. Aspart of the fund, Barclays will award £200,000 to UK community financeorganisations throughout 2013.Application deadline is 11thApril 2013.Finance Available: Grants up to £50,000.Key Requirements: Organisations must be a CDFI or credit union (i.e. amember of Transact), an operational business or has received final FSAapproval to begin operations and operational in the UK.Co-operativeGroup LtdThe Co-operative Group Ltd has a wide variety of retail businesses and it isco-operatively run and owned by its members. It is the largest organisation ofthis type in the UK, with over six million members.Co-operativeCommunity SharesFundThe Co-operative Community Shares Fund provides underwriting services tocommunity-owned enterprises seeking to raise investment through acommunity share issue (see section 3.2.vi).Co-operative Bank The Co-operative Bank has a long history of ethical finance, co-operative58See CIC regulator
  • 37. 37We help social entrepreneursraise capitalCommunityBankingbusiness support and community finance services. Community Directplusgives charities, community groups, voluntary organisations and socialenterprises an ethical way to bank for free.Finance Available: £500 to £1,000 from the Customer Donation Fund59.Key Requirements: Applicant must be a Community Directplus accountholder.Co-operative andCommunityFinanceThe Co-operative and Community Finance provides supportive loan finance tohelp people take control of their economic lives and create social benefit.Finance Available: Loans from £10,000 to £75,000, with a £150,000 totallending cap.Key Requirements: Organisation owned and democratically controlled by itsmembers (i.e. either employees, customers or members of a community).LloydsBanking GroupSee section 3.3.ix Lloyds Banking Group and School for Social EntrepreneursProgramme.Royal Bank ofScotlandGroupMicroFinanceFundThe RBS Group MicroFinance Fund (MFF) has been set up to provide loansto potential and existing social entrepreneurs who do not qualify formainstream bank lending. The fund offers financial support for the purpose ofstarting or expanding a community-based business.Finance Available: £30,000 to £1m in loan funding.Key Requirements: Charities, social enterprises, CICs and co-operativesthat are sustainable, deliver high levels of social value and are investmentready. Organisations must have clear social or environmental objectives andreinvest profits for a social purpose; be established, located and trading in theUK; and have been declined a loan by a mainstream bank.Inspiring WomenEnterpriseInspiring Women Enterprise offers grants to help build the capacity oforganisations that encourage and support women who are not yet in businessto explore enterprise. It will support both new and existing programmes led bynot-for-profit organisations.The next round of funding opens 3rdJune 2013.Finance Available: Annual funding pot of £500,000. Grants up to £50,000.59Co-operative Customer Donation Fund winners
  • 38. 38We help social entrepreneursraise capitalKey Requirements: UK organisations with innovative ideas to inspire womeninto enterprise.Inspiring YouthEnterpriseInspiring Youth Enterprise invests in both new and existing programmes, ledby not-for-profit organisations, supporting young people aged 13-30 years old.The next round of funding opens 4thMarch 2013.Finance Available: Grants up to £50,00060.Key Requirements: UK organisations with innovative ideas to inspire youngentrepreneurs.vii. Foundations and TrustsA growing number of charitable trusts and foundations are showing interest in social enterprise, andsome have made social investments as well as conventional grants. However, much of this work isembryonic and limited primarily to the work of a few notable foundations.Despite this growing interest and the revisions made to Charity Commission guidance CC14 whichhelps to clarify the types of investment strategies that charitable foundations may undertake61, thevast majority of trusts and foundations are not yet engaged in social investment and need significantinformation, resources and reassurance on their fiduciary duties to do so.Below is a non-exhaustive list of foundations that have either begun to invest in social enterprises orhave expressed an interest in doing so. Also included in the list are those foundations which haveawarded grants to charitable social enterprises in recent years.Specific advice on accessing grant funding from charitable foundations is available in ‘Applying to acharitable trust or foundation’ from the Association of Charitable Foundations (ACF). However, in allcases, please determine the exact procedure for applying to these Foundations as most do notwelcome unsolicited approaches for funding.A TeamFoundationFocus: Improving food access, quality, education, research and environmentalstewardship through funding inspired projects and charitable organisations withlike-minded goals.Key Requirements: Funding will be granted to registered charities, not-for-profit and non-governmental organisations (NGOs), universities and colleges inthe UK and Ireland. The Foundation looks to support a mixture of practicalprojects, research and policy work. Proposals should incorporate methods formeasuring impact, monitoring and evaluation and demonstrate the possibility oflasting impact on policy or practice.Finance Available: Not specified.Type of Finance: Grant.60Inspiring Youth Enterprise successful first round organisations61K. Hill (July 2011) ‘Investor Perspectives on Social Enterprise Financing’, ClearlySo (prepared for the City ofLondon Corporation, City Bridge Trust and the Big Lottery Fund), p52 para 2
  • 39. 39We help social entrepreneursraise capitalDeal Size: Not specified.Grantees: 2011 Food Issues Census.ArthurGuinness FundFocus: Identify and support social entrepreneurs across the markets whereGuinness operates.Partners: Ashoka, Social Entrepreneurs Ireland, UnLtd, British CouncilIndonesia, Virgin Unite, UP Singapore.Key Requirements: Not specified.Finance Available: €7.4m.Type of Finance: Grant.Deal Size: Not specified.Grantees: The March Hill Co-op, TCA, CV Outreach, CV Fruitanol62.BarrowCadbury TrustFocus: Supporting vulnerable and marginalised people in society. The Trust’swork is divided into three programme areas: criminal justice, migration andEurope, and poverty and inclusion63.Key Requirements: Programme dependent.Finance Available: £3.5m for social investment64.Type of Finance: Grant, loan, social impact bond (SIB), equity and quasi-equity investment.Deal Size: £50,000 to £250,000 investment.Grantees/Investees: Social Justice Centre, Nationwide Learning, Anawim,Key Birmingham, Women Acting in Today’s Society, Peterborough SIB.Bill & MelindaGatesFoundationFocus: Global development (agriculture, financial services for the poor, water,sanitation and hygiene, urban poverty, and emergency response), globalhealth, and US programmes such as high schools, homelessness and libraries.Key Requirements: Impactful and well-run social ventures.Finance Available: Social investment fund with £252m to invest.Type of Finance: Grant and investment.Deal Size: Not specified.Grantees/Investees: Inigral, Sidai Africa Ltd65, Liquidia Technologies.62Arthur Guinness Fund case studies63Barrow Cadbury programmes64Just over £1m has been committed, at time of writing65FARM Africa Annual Review 2010-2011, p10
  • 40. 40We help social entrepreneursraise capitalBulldog Trust Focus: Financial and advisory assistance to charities. The Trust has pledgedto start match funding campaigns, offers interest-free loans to help charitiesthrough cash-flow crises, funds innovative pilot projects that could not accessfunding elsewhere and facilitates scholarships and bursaries in fields it believesare overlooked. It also runs two separately administered, smaller educationalgrants funds66.Key Requirements: Not specified.Finance Available: £200,000 per annum67.Type of Finance: Grant.Deal Size: Not specified.Grantees: Humanitarian Aid Relief Trust, The Prince’s Trust, University ofWinchester.Bulldog Trust andGolden Bottle TrustFunding InitiativeFocus: The Funding Initiative, in collaboration with Golden Bottle Trust (seebelow), is a ‘revolutionary “criteria-free” grant-making scheme’.Key Requirements: No criteria, but the project should be charitable and thesupport should benefit the beneficiaries of a project and the longer-termrunning or development of the organisation itself.Finance Available: £200,000 in 2013.Type of Finance: Grant.Deal Size: £1,000 to £30,000 over a maximum of three years.Grantees: Not specified.CalvertFoundationThe Calvert Foundation created the Community Investment Note over 15 yearsago on which subsequent social financial instruments have developed. Whenpurchasing a note, the full value of the principal is lent out to help underservedcommunities. As loans are repaid, the capital is lent out again, multiplying thesocial impact that the investment has created. At maturity, capital is returnedwith interest.Focus: Established community organisations serving as financialintermediaries (microfinance, affordable housing, CDFIs) and organisationsworldwide providing affordable housing, microfinance, environmentalsustainability, job creation and community development.Key Requirements: Organisations must have three years of operatingexperience, a solid base of net assets or net worth with minimum total assets of$10m, evidence of good operating performance, audited financial statements, atrack record of raising and repaying debt capital, and strong management.66The Bulldog Arts Fund offers grants to innovative arts projects. The Bulldog Educational Grants Fund makessmall grants towards special educational needs.67Bulldog Trust has donated £3m to date
  • 41. 41We help social entrepreneursraise capitalFinance Available: Not specified.Type of Finance: Loans are limited to 10% of applicants total assets and arerepayable over one to five years. No grants.Deal Size: $50,000 to $2.5m.Investees: Oikocredit, Alterfin, Equal Exchange68.City BridgeTrustThe City of London Corporation is the sole trustee of City Bridge Trust.Focus: Supporting charitable activity that benefits people living in GreaterLondon.Key Requirements: Beneficiary organisations must be properly constituted,not-for-profit third sector organisations69.Finance Available: Over £15m per annum.Type of Finance: Grant.Deal Size: Grants for large capital projects will not usually exceed £50,000, butthere is no maximum or minimum grant. The Trust will not usually be anorganisation’s largest funding provider.Grantees: Hackney Community Transport, Primetimers, Charities EvaluationServices70.The City ofLondon SocialInvestment FundThe City of London Social Investment Fund (CoLCSIF) is administered by CityBridge Trust and overseen by a Social Investment Board.Focus: Supports work with a London benefit (60% of Fund), but also interestedin activities across the UK (30% of Fund) and internationally (10% of Fund).Key Requirements: Direct investment is restricted to organisations that have afinancially viable business plan, clearly articulated social impact, strongmanagement and governance and a clear exit strategy. Indirect investment infunds managed by others where those funds have charitable, community orsocial benefit and clearly articulated social returns, show that the distribution ofprofits generated by the funds are capped to investors, and make available toinvestors an assessment of the fund’s performance in social and financialterms.Finance Available: £20m.Type of Finance: Loan finance, quasi-equity and equity.Deal Size: Not specified.68Calvert Foundation portfolio69This includes registered charities, CICs, industrial and provident societies and community amateur sports clubs70City Bridge Trust recent grants
  • 42. 42We help social entrepreneursraise capitalInvestees: Not specified.CouttsCharitableTrust andFoundationFocus: Supports organisations that work for charitable purposes. Clientsinclude private charitable trusts and museums, as well as educational, religiousand medical causes.Key Requirements: Not specified71.Finance Available: Not specified.Type of Finance: Grant and investment.Deal Size: Determined on a case by case basis.Grantees/Investees: The Peabody Trust72.The DulvertonTrustFocus: The Trust is an independent grant-making charity established toprovide funds for charitable institutions or purposes, ranging from youthopportunities, general welfare of disadvantaged people and communities,conservation of wildlife habitats and peace and humanitarian support.Key Requirements: National or multi-regional registered charities ororganisations with charitable status that operate in England, Scotland or Wales.Finance Available: Not specified.Type of Finance: Grants over a one year period, but occasionally longer-termsupport of up to three years.Deal Size: Not specified, but previous grants range from £5,000 to £90,000.Grantees: Changemakers, Emmaus UK.EducationEndowmentFoundationThe Education Endowment Foundation (EEF) is an independent grant-makingcharity. The EEF is funded by a £125m grant from the Department forEducation to the Sutton Trust as the lead charity in partnership with ImpetusTrust.Focus: Raising the attainment of disadvantaged pupils in English primary andsecondary schools.Key Requirements: Projects run by schools and other not-for-profitorganisations that aim to raise the achievement of disadvantaged children inthe countrys most challenging schools. A particular focus on innovation and onscaling-up projects which are cost effective and replicable.Finance Available: £125m.71Interested parties should contact Coutts directly as specified here72Video of the Peabody Trust and Coutts & Co’s support
  • 43. 43We help social entrepreneursraise capitalType of Finance: Grant.Deal Size: £50,000 minimum.Grantees: Success for All, Creative Futures UK, School 21, Shared Maths73.EleosFoundationFocus: The Foundation invests in and partners with social entrepreneurs thateffectively implement high impact, early stage, pioneering market-basedsolutions to eradicate extreme poverty.Key Requirements: Not specified.Finance Available: Not specified.Type of Finance: Investment.Deal Size: Not specified.Investees: None specified.EsméeFairbairnFoundationFocus: The arts, education and learning, environment and social change.Esmée Fairbairn’s Finance Fund makes social investments for propertypurchases, other asset or equipment purchases, working capital, developmentcapital and/or risk capital.Key Requirements: Work must be ‘legally charitable’, but the organisationitself does not need to be a registered charity.Finance Available: Main fund provides approximately £40m of grants perannum. Finance Fund has £21m allocated to it.Type of Finance: Grant and investment (loans, quasi-equity and equity).Deal Size: Not specified.Grantees/Investees: Social Investment Scotland, The London Orchard ProjectLtd, Food From The Sky, Full Body and the Voice Ltd, Ethical PropertyCompany, UnLtd, Social Impact Partnership, East Lancashire Moneyline,Buzzbnk74.73EEF EEF awarded projects74Esmée Fairbairn Foundation grantees and investees
  • 44. 44We help social entrepreneursraise capitalFood Strand Focus: Supports work that demonstrates the important role food plays inwellbeing and that connects people to the food they eat. It seeks to bring aboutmore sustainable food production and consumption policies and practices.Key Requirements: Large-scale strategic interventions or innovative localwork.Finance Available: £5m over three years from January 2013, although it maybe extended for a further two years pending a review during 2015.Type of Finance: Grant and investment (loans, quasi-equity and equity).Deal Size: Not specified.Grantees/Investees: See above.FriendsProvidentFoundationFocus: Excluded people, particularly those on low incomes or otherwisevulnerable to market failure.Key Requirements: Organisations should be working to support the financialinclusion of disadvantaged groups.Finance Available: A new funding programme, which will not have financialinclusion objectives, is under consideration75.Type of Finance: Grant and investment.Deal Size: Not specified.Grantees/Investees: MyBnk, Ethex, Bromley by Bow Centre76.Golden BottleTrustFocus: The arts, community, education, environment and wildlife, health,microfinance and the developing world.Key Requirements: Not specified.Finance Available: £8.34m.Type of Finance: Grant and investment.Deal Size: Not specified.Grantees/Investees: Forum for the Future, Migratory Salmon Foundation,Peterborough Prison Bond, Training for Life, Opportunity International77.JosephRowntreeFocus: Individuals and projects undertaking work in the UK and Ireland topromote peace, political equality and social justice.75Friends Provident Foundation Giving Programme76Friends Provident Foundation projects77Golden Bottle Trust 2011 review
  • 45. 45We help social entrepreneursraise capitalCharitableTrustKey Requirements: Work must be legally charitable and fall within the Trust’smain programme areas78. Social investments will be made into organisationswith size, scale and measurable social returns.Finance Available: Grants of around £5m per annum. Total social investmentswill not exceed 5% of all funds.Type of Finance: Grant and investment.Deal Size: No fixed limits. Past grants ranged from £2,000 to £150,000.Grantees/Investees: 1990 Trust, Action from Ireland, Africa Centre, SocialStock Exchange79.Kent BigSociety FundThe Kent Big Society Fund is funded by Kent County Council (KCC) andadministered by the Kent Community Foundation (KCF).Focus: Existing and newly created social enterprises that benefit the localcommunity and address economic, social and environmental needs in Kent.Key Requirements: Social enterprises that operate within the KCCadministrative area that utilise the finance to benefit Kent residents,demonstrate clear social aims and community benefit, and have tradingactivities that form a significant part of income.Finance Available: £3m.Type of Finance: Loan.Deal Size: £10,000 to £100,000.Investees: Turner Cars, Beach Creative.LankellyChaseFoundationFocus: Bringing about change to improve the quality of life of people who facethe persistent clustering of social harms such as homelessness, substancemisuse, mental and physical illness, extreme poverty and violence and abuse.Key Requirements: Must be registered charities, industrial and providentsocieties, exempt charities and CICs or organisations applying for charitablestatus.Finance Available: £5m available as a Social Investment Fund (approximately5% of the value of its endowment).Type of Finance: Secured and unsecured loans.Deal Size: £50,000 to £500,000.Investees: Charity Bank, East Lancashire Moneyline, Peterborough SocialImpact Partnership, Ethex, Bristol Together80.78Peace, racial justice, power and responsibility and Quaker concerns79Joseph Rowntree Charitable Trust grants database80Projects funded by LankellyChase. At the time of writing, the Foundation has made eight social investmentstotalling just over £1.7m, ranging from £30,000 to £500,000
  • 46. 46We help social entrepreneursraise capitalNationalEndowment forScience,Technologyand the ArtsNational Endowment for Science, Technology and the Arts (Nesta) is anindependent charitable foundation with a mission “to help people andorganisations bring great ideas to life by providing finance throughprogrammes, investments and grants, and mobilising research, networks andskills.”Nesta pilots actions to support social innovation and has been supportive ofinitiatives and research around social investment. It also runs the Centre forChallenge Prizes (see section 3.3.ix) and manages the Innovation in GivingFund (see section 3.3.x).Impact Investment Focus: Investing to create new impact investment funds and products andfunding the strengthening of social venture intermediaries who provideincubation, business support of corporate finance advice to innovative socialventures.Key Requirements: Not specified.Finance Available: £5m to build a current portfolio of 15 funds, incubators andadvisory firms.Type of Finance: Investment.Deal Size: Not specified.Investees: Bridges Ventures Social Entrepreneurs Fund, ShaftesburyPartnership, Bethnal Green Ventures, ClearlySo81.Nesta ImpactInvestments FundIn October 2012 Nesta launched its impact investment fund, Nesta ImpactInvestments, through its fund management subsidiary Nesta InvestmentManagement.Focus: Health and wellbeing of an ageing population; educational attainmentand employability of children and young people; and social environmentalsustainability of communities.Key Requirements: Early stage ventures with high potential social impact thatcan be evidenced, a financially viable business model capable of producing areturn on its investment and based in, and supplying their products andservices in, the UK.Finance Available: £25m target fund size82.Type of Finance: Medium term equity, quasi-equity and debt investment.Deal Size: £150,000 to £1m.Investees: Not specified.Venture Investment Focus: Nesta is an investor in innovation, from technology start-ups and publicpolicy, to social enterprise and backing creative individuals. It works directly insupporting young, innovative businesses and indirectly by seeking to improve81Nesta Impact Investment portfolio82£17.6m secured from Omidyar Network, BSC and Nesta in the first closing
  • 47. 47We help social entrepreneursraise capitalthe environment within which early stage ventures can grow.Key Requirements: Early stage ventures with a clear demonstrable impact inageing well, children and young people and self-sustaining communities.Finance Available: Not specified.Type of Finance: Not specified.Deal Size: Not specified.Grantees/Investees: Plaxica, Camfridge, Cellnovo, Ashe Morris83.Nominet Trust “Nominet Trust is spearheading the ways in which the internet and digitalmedia can be used to stimulate positive social action at a grass-roots level.”Focus: Internet and digital media focused social enterprises in the UK.Key Requirements: Projects must demonstrate how the internet can be usedto improve the lives of individuals and communities.Finance Available: Not specified.Type of Finance: Grant.Deal Size: Existing investments range from £2,500 over six months to£250,000 over two years. Applications for investments of over £100,000 aremore likely to be successful if match funding has been secured from otherorganisations.Grantees: 8fold, Wind Mill Hill City Farm, Age UK, Alzheimer’s Society, OxfordInternet Institute84.Panahpur Focus: The Foundation seeks to operate its capital holistically to achieve itscharitable goals, which are rooted in the Christian faith and reflect a concern forall people, especially the excluded, marginalised and vulnerable.Key Requirements: Not-for-profit organisations and social businesses‘democratising resources’ in emerging economies to move them to long-termand independent sustainability and create positive social and financialoutcomes.Finance Available: Not specified.Type of Finance: Not specified.Deal Size: Previous investments range from £3,000 to £500,000.Investees: Empower Community, Abundance, Metro Laundry, Tinder Capital,Mustard Seed85.83Nesta Venture Investment portfolio84Nominet Trust current projects85Panaphur portfolio
  • 48. 48We help social entrepreneursraise capitalPaul HamlynFoundationFocus: Maximising opportunities for individuals to experience a full quality oflife; in particular, children and young people, and others who aredisadvantaged. The Foundation has grant programmes in the arts, socialjustice, and education and learning and prefers to support work which othersmay find hard to fund.Key Requirements: Must be a registered charity or not-for-profit organisation.Finance Available: Not specified.Type of finance: Grant.Deal Size: £5,000 to £300,000.Grantees: Languages Sheffield, The Place2be, Paddington Arts Ltd, SorrelFoundation, Contact Theatre, Changing Tunes, Dance United86.PlunkettFoundationFocus: “Helps rural communities through community-ownership to take controlof the issues affecting them” by helping them to set up and run community-owned shops, and promoting and supporting the development of communityfood and farming enterprises across England.Key Requirements: Not specified.Finance Available: Not specified.Type of Finance: Combination of loan and grant finance.Deal Size: Not specified.Grantees/Investees: The Norton Co-operative Pub, Pengwern Arms, The StarInn.PURE theClean PlanetTrustFocus: Provides funding to communities in the developing world, to reducecarbon emissions and improve quality of life, and the UK, to enable communitygroups to install renewable energy technologies and energy efficiencymeasures, reducing their carbon footprint and generating new revenue streamsfor their community activities.Key Requirements: Projects located in the 50% most deprived areas asmeasured on the Indices of Multiple Deprivation. Applications from deprivedareas are prioritised. The primary goal is to finance the installation ofrenewable energy technology that is eligible for Feed-in Tariff (FIT) orRenewable Heat Incentive (RHI) payments.Finance Available: Over £2.8m.Type of Finance: Low interest finance of up to £50,000 or 50% of the capitalcost to part fund renewable energy projects.Deal Size: Not specified.Investees: Fenham Swimming Facility, Osprey Leisure Centre87.86Paul Hamlyn Foundation previous awards87PURE UK projects
  • 49. 49We help social entrepreneursraise capitalRockefellerFoundationFocus: Creating measurable impact for those living in poverty and vulnerablesituations, including basic survival safeguards, global health, environment andclimate change, urbanisation, and social and economic security.Key Requirements: Projects based in Africa, Asia or the US (with exceptions).Finance Available: Not specified.Type of Finance: Grant.Deal Size: Not specified.Grantees: Villgro, Meridian Institute, Social Stock Exchange (UK), Forum forAfrican Women Educationalists88.SainsburyFamilyCharitableTrustsThe Sainsbury Family Charitable Trust operates 18 grant-making trusts whichare independently run by individual family members. The trusts relevant tosocial entrepreneurs with a clear charitable purpose are listed below.The following three trusts are known to be interested in social investing:Ashden Trust Focus: Practical, local energy solutions that cut carbon, protect theenvironment, reduce poverty and improve people’s lives. It has seven maincategories of programmes: sustainable development international; sustainabledevelopment UK; sustainable regeneration; people at risk; arts andsustainability; social investment fund and low carbon fund.Key Requirements: Must be a registered charity or not-for-profit organisation.Finance Available: Not specified.Type of Finance: Grant and loan finance.Deal Size: A 2011 report suggests that in one year, a total of over £1m worthof grants were awarded to 45 organisations; sums ranged from £30,000 to£500,000. Social investments made in the form of loans ranged from £14,000to £100,000 to finance solar or environmental initiatives.Grantees/Investees: Aviation Environment Federation, Food Chain (NorthEast CIC), Open University, Kingdom Bioenergy, Forum for the Future.JJ Charitable Trust Focus: Projects delivering literacy support to those with learning difficulties andex-offenders, and environmental education in the UK and overseas (especiallycommunity-based agriculture initiatives).Key Requirements: Must be a registered charity or not-for-profit organisation.Finance Available: Not specified.Type of Finance: Grant and investment.88Rockefeller Foundation grantee profiles
  • 50. 50We help social entrepreneursraise capitalDeal Size: Not specified.Grantees/Investees: Social Impact Bond, Peterborough.Mark LeonardTrustFocus: Educating children and young adults in the UK on environmentalmatters such as sustainable agriculture and bio-diversity, sustainable transport,energy efficiency and renewable energy; and youth work that supports therehabilitation of young people involved in anti-social or criminal activities, andhelps remove the barriers to social inclusion.Key Requirements: Must be a registered charity or not-for-profit organisation.Finance Available: Not specified.Type of Finance: Grant. May consider investment.Deal Size: Not specified.Grantees/Investees: Green Alliance, Sustainable Restaurant Association, TheAshden Awards.The remaining Sainsbury Family trusts listed below support specificenvironmental and social issues:The Alan andBabette SainsburyCharitable FundSupports “ethnic minority and refugee groups, community-based health,education and employment projects in developing world, inclusive arts andeducation projects for young people, selected Southwark-based charities.”Gatsby CharitableFoundationSupports “plant science, neuroscience, science and engineering education,economic development in Africa, public policy, the arts, and mental health.”Headley Trust Supports a wide variety of projects ranging from those in arts, heritage andconservation in the UK to projects supporting the social welfare of the elderly,development projects based in Africa and projects supporting disabled people.Indigo Trust Funds “technology-driven projects to bring about social change, largely inAfrican countries. The Trust focuses mainly on innovation, transparency andcitizen empowerment.”Linbury Trust Supports projects in the areas of arts, education, environment and heritage,medical, social welfare and developing countries.Monument Trust Supports projects in areas ranging health and community care (e.g. HIV/AIDSprojects in the UK and Africa, from social exclusion, sexual health of youngpeople and hospices) to arts and heritage. Proposals for cultural projects whichwill make a major contribution to improving economically depressed areas areparticularly welcomed.
  • 51. 51We help social entrepreneursraise capitalThe Staples Trust Supports projects tackling gender issues such as domestic violence andwomen’s rights. This extends to empowering women through overseasdevelopment, as well as, more generally, assisting disadvantagedcommunities, and encouraging sustainable agriculture.The Three GuineasTrustFunds projects in the field of autism and Asperger’s syndrome. Many grantsresult from the trustees’ own research and contacts with experts working in thisfield. The trustees do not make grants directly to individuals, or fund pureresearch.True Colours Trust “Supports the lives of children with special needs and their families, focusing ondisability and palliative care (in the UK and Africa).”WoodwardCharitable TrustSupports projects which assist children and young people “who are isolated, atrisk of exclusion or involved in anti-social behaviour; minority groups includingrefugees, gypsies and travellers, prisoners and ex-offenders; disabled people;homelessness; arts outreach for disadvantaged groups; and environmentalprojects with an educational element.”Tellus MaterFoundationFocus: UK-based charitable organisations attempting to “shift the rules of thegame in political, economic and financial institutions.”Key Requirements: High risk projects with the potential to scale.Finance Available: Not specified.Type of Finance: Grant.Deal Size: Not specified.Grantees: Forum for the Future, Carbon Leapfrog, Volans, WWF-UK, EuropeanClimate Foundation89.Trust forLondonFocus: Supports work that provides greater insight into the root causes ofLondon’s social problems and how they can be overcome; activities which helppeople improve their lives; and work empowering Londoners to influence andchange policy, practice and public attitudes.Key Requirements: Must be a community and voluntary organisation, but doesnot need to be a registered charity. The projects should address issues in areas ofemployment, advice, social justice and violence.Finance Available: £7m per annum.Type of Finance: Grant.Deal Size: No limit, but £75,000 is the average given.Grantees: Cool2Care, Construction Youth Trust, Employability Forum, Women and89Tellus Mater Foundation awarded grants
  • 52. 52We help social entrepreneursraise capitalManual Trades90.TheTrusthouseCharitableFoundationFocus: Projects in the UK which address issues in rural communities and/or areasof urban deprivation, with a particular focus on community support (arts, educationand heritage), disability and health care.Key Requirements: Must be a charitable organisation (includes CICs, socialenterprises, not-for-profits and voluntary associations) in England, Scotland, Walesand Northern Ireland.Finance Available: £2m per annum.Type of Finance: Grant.Deal Size: £5,000 to £30,000.Grantees: Forum for the Future.Tudor Trust Focus: Supports voluntary and community organisations and, in recent years, hasmade a number of investments in social enterprises and social investmentproducts.Key Requirements: UK organisations working with people “at the margins ofsociety” and with an annual turnover of less than £1m.Finance Available: The value of Tudor Trust’s social investments on 31stMarch2011 was £3.3m91, representing 2% of the market value of the trust’s totalinvestments under management.Type of Finance: Grant and investment.Deal Size: No maximum or minimum grant amount.Grantees/Investees: Venturesome, Ethical Property Company, Community LandTrust Fund, Gloucestershire Gateway Trust, Social Impact Partnership92.90Groups funded by Trust for London91Tudor Trust annual report and accounts 2010-2011, p19 para 992Ibid
  • 53. 53We help social entrepreneursraise capitalviii. Social Venture IntermediariesSocial intermediaries are vital for making connections across the different stakeholders in the sector –especially between potential investor and investee. Many of these intermediaries provide investmentreadiness support before connecting finance with organisations. See section 4 for further informationon business support offered to entrepreneurs as many social venture intermediaries are listed there.ClearlySo ClearlySo advises social businesses, social enterprises and impactinvestment funds on raising capital. It is also an approved provider forthe UK’s Investment and Contract Readiness Fund (ICRF). Clientfocus is on social firms with capital raising ambitions of £500,000 toupwards of £10m.Fair FinanceFair Finance is a social business working with the financially excludedin London. It offers affordable financial products to ensure thatvulnerable and disadvantaged people can access financial serviceswithout needing to rely on predatory lenders.FranchisingWorksFranchisingWorks is a social enterprise that tackles unemployment byhelping to create new businesses and jobs through franchising. Itprovides independent advice and practical support to peopleinterested in exploring franchising as a way into self-employment.Future ParticipleParticiple designs, develops and takes to scale innovative solutions tothe most pressing social challenges of our time. It connects thecreative ideas generated at the community level with experts who canassist in the development of these ideas. It is the creator of theSouthwark Circle, a membership organisation for older people whichtakes care of everyday worries and supports social networks.Investing for Good Investing for Good (IFG) provides impact investment services in orderto connect investors interested in more than financial return withinnovative social entrepreneurs. It offers a Social Bond Programmewhich provides social capital to charities and social enterprises,advice and consultancy in investment readiness and impact advisoryservices to rate social and environmental investments. IFG is also anapproved provider to the ICRF and has formed a strategic partnershipwith The Social Investment Business.‘The Good Analyst: Impact Measurement and Analysis in the Social-Purpose Universe’ presents the social impact methodology used byIFG.PymwymicPut Your Money Where Your Mouth Is Community (Pymwymic) isbased in the Netherlands, but is active across the globe. Any ‘for profitbusiness’ that demonstrates a positive social impact can potentially besupported by this community of families, philanthropists and angelinvestors which offers events, advice and capital raising opportunities.
  • 54. 54We help social entrepreneursraise capital(See section 3.3.i).ResonanceResonance works with social enterprises throughout the UK, assistingthem in their development strategies and providing investmentreadiness support. It connects socially-motivated investors with socialenterprises which can demonstrate their ability to generate socialimpact at scale, as well as financial return. (See section 3.3.ii for moreinformation on the funds managed by Resonance).ShaftesburyPartnershipThe Shaftesbury Partnership brings together stakeholders operatingin the social enterprise sector and specifically assists organisations inscaling their operations through franchising and replication. It “bringstogether paradigm-shifting ideas and entrepreneurial, high calibreindividuals to create new social enterprises” and has launched anumber of social enterprises in areas including employment, faithcommunities, healthcare and reducing reoffending.The Shaftesbury Partnership will lead on the brokering of powerfulstrategic networks for the Big Venture Challenge (BVC) winners andsupport the winners to manage these networks.Social FinanceSocial Finance supports social organisations to raise and deploycapital. It works with government to deliver social change and developsocial investment markets and opportunities. It offers financialproducts to “forge essential links between the market, governmentand society for the greater good”. Some of its products/servicesinclude the first ever Social Impact Bond and an approved provider ofthe Investment and Contract Readiness Fund (ICRF). It also supportsorganisations working for positive social change in raising capital.Social StockExchangeThe Social Stock Exchange (SSE) aims to “allow investors to tradeexclusively in shares of companies with social and environmentalgoals”93. Its target sectors are smaller high growth companies in thehealth, educational and environmental markets. The exchange willfunction like any other, will be regulated by the UK’s FinancialServices Authority (FSA), and could list up to 200 companies withinfive years. Anyone applying will be subject to a social audit. Thedevelopment of the SSE has been supported by, amongst others, theRockefeller Foundation and Big Society Capital.Stepping Out Stepping Out helps good public sector services become thriving socialbusinesses and assists successful social entrepreneurs in the ‘spin-out’ phase. It offers a package of support for the transition stage, arange of consultancy services to ensure the business is operatingefficiently and innovatively, as well as ‘post spin-out’ support to ensure93Social Enterprise Dictionary
  • 55. 55We help social entrepreneursraise capitalsustainable growth and development.ix. Award OrganisationsThe following organisations are known to operate an award programme or competition:Ashden Ashden works to “promote local sustainable energy and a shift to a lowcarbon economy bringing green jobs, energy security, lower fuel billsand reduced fuel poverty” in the UK and developing world. TheAshden Awards have been developed to support and accelerate thework of organisations in these areas. Currently, Ashden have workedwith over 140 organisations, ranging from an enterprise bringing cleanstoves to rural Africa to a Cornish school embracing energy-savingacross its learning and practice94.AshokaAshoka “strives to shape a global, entrepreneurial, competitive citizensector: one that allows social entrepreneurs to thrive and enables theworld’s citizens to think and act as changemakers”. Ashoka supportssocial enterprises via their Venture mechanism. Once a socialenterprise is found via Venture, the social entrepreneurs are madeAshoka Fellows95and receive a living stipend for an average of threeyears, professional support, and access to a global network of peers in70 countries. This allows the entrepreneurs to fully focus on buildingtheir institutions.AshokaChangemakers®Ashoka Changemakers® support the development of socialinnovations. It has hosted over 50 online competitions to assist in theidentification and support of innovative ideas to work for social change.Current competitions offering funding to assist in developing newinitiatives are highlighted here. Ashoka’s prize page also outlinesfurther prizes that are available from their partners.Deloitte SocialInnovation PioneersDeloitte’s programme offers 30 UK social businesses with innovativeideas a package of support, including workshops and access to aDeloitte support team. The ultimate aim of the programme is to assistbusinesses in becoming investment ready and to scale theiroperations. Deloitte selected its first 30 Pioneers in March 201296.9449 organisations and programmes from over 60 countries have been shortlisted for the 2013 Awards95Since 1981 Ashoka has elected almost 3,000 leading social entrepreneurs as Ashoka Fellows96Deloitte Social Innovation Pioneers
  • 56. 56We help social entrepreneursraise capitalEchoing Green Echoing Green offers a two year Fellowship to social entrepreneursfrom all over the world. Selected fellows receive up to $90,000 in seedfunding to develop new initiatives; access to Echoing Green’s networkof more than 500 Fellows; leadership development opportunities; andone-to-one support and counselling.LeapFrogInvestments GlobalFellows ProgrammeLeapFrog offers a professional development opportunity toentrepreneurial young leaders in the form of a two year immersion inimpact investing and frontier financial services. Fellows work directlywith LeapFrog’s leaders to source and execute large-scale investmentopportunities, to enable high-impact businesses to grow and succeed,and to expand access to financial safety nets and springboards inemerging markets in Africa and Asia.LGT VenturePhilanthropy iCatsFellowshipThe iCats Programme aims to bridge the gap between social venturesin need of professional know-how and resources, and businessprofessionals with the desire to apply their knowledge and experienceto benefit the social sector. The selected iCats Fellows meet with theirpeers in Zurich, undertake orientation training before their assignmentand receive intense mentoring support throughout their engagement.Since inception in 2009, 52 iCats Fellows joined the Programme towork for 11 months full-time in the field97.The Melting PotSocial InnovationIncubator AwardThe Melting Pot’s (see section 4.5) Social Innovation Incubator Awardoffers free desk space and assistance for 10 new not-for-profit start-ups. Starting in 2012, they welcomed 11 start-up Social Innovators toits 12 month programme98.Applications for 2013 programme are yet to be announced.Nesta Centre forChallenge PrizesThe Centre for Challenge Prizes, with and on behalf of partners, designand manage challenge prizes that will deliver beneficial innovations.Challenge prizes offer a reward to whoever can first, or mosteffectively, meet a defined challenge.Nesta (see section 3.3.vii) announce challenges throughout the year99.Previous challenge prizes include Giving Challenge Prizes, SocialInnovation Competition, UNDP Challenge, Cycling Challenges and BigGreen Challenge100.97iCats Fellow Alumni98Social Innovation Incubator Award 2012-13 winners99See live challenge prizes for more information100Also see the most famous historical challenge prizes
  • 57. 57We help social entrepreneursraise capitalSantander SocialEnterpriseDevelopmentAwardsSocial Enterprise Development Awards (SEDA) aims to support socialenterprises and CICs looking to grow their business and improve theirlocal community. Finance available is a development award of up to£50,000. Awards are targeted at established social enterprises, withtwo or more years of trading, which need a financial boost to help themdevelop their business. SEDA supported 15 social enterprises in itspilot year in 2011 and 60 during the national launch in 2012101.Schwab Foundationfor SocialEntrepreneurshipThe Schwab Foundation is a not-for-profit organisation working tosupport the development of social entrepreneurship. It runs the globalSocial Entrepreneur of the Year competition in partnership with theWorld Economic Forum for the most accomplished socialentrepreneurs. Winners102gain access to social entrepreneur networksand access to World Economic Forum meetings.Skoll Foundation The Skoll Foundation’s mission is to drive large-scale change byinvesting in, connecting and celebrating social entrepreneurs and theinnovators who help them solve the world’s most pressing problems. Itinvests in social entrepreneurs through its annual Skoll Award forSocial Entrepreneurship (see Competitions and Challenges below),makes grants to support social entrepreneurship, including the SkollCentre for Social Entrepreneurship in Oxford, and connects socialentrepreneurs through the annual Skoll World Forum on SocialEntrepreneurship.SocialEntrepreneursIrelandThe Social Entrepreneurs Ireland Awards Programme “provides directsupport to high potential social entrepreneurs, helping them to refinetheir solution, build their organisations, become effective leaders andincrease their impact.”The Impact Programme is an annual, two to three year programme thatprovides three social entrepreneurs with a support programme andinvestment of €130,000 in growth capital and capacity building funding(see section 4.4).The one year Elevator Programme provides five early stage socialentrepreneurs with €22,000 in growth capital and capacity buildingfunding and training, mentoring and support103.Submissions for 2013 programme closed 18thFebruary 2013.101SEDA previous winners102Schwab Social Entrepreneur of the Year Award previous winners103Social Entrepreneurs Ireland previous winners
  • 58. 58We help social entrepreneursraise capitalTechnologyStrategy BoardThe Technology Strategy Board’s (TSB) goal is to “accelerateeconomic growth by stimulating and supporting business-ledinnovation”. TSB runs a variety of regular competition programmesdirected at providing funding to organisations delivering businessinnovation.UnLtd UnLtd is a charity whose awards are funded by the income generatedfrom the Millennium Commission’s investment of £100m. It supportspeople with vision, drive, commitment and passion who want to changethe world for the better. UnLtd supports social entrepreneurs financiallythrough its award schemes:Level 1: To get ideas off the ground, UnLtd provides awards of up to£5,000 and one year of support from an Award Manager.Fast Growth: For ventures that are less than five years old and needbetween £100,000 and £300,000 of growth capital in the next twoyears, UnLtd provides awards of up to £20,000 and support to raiselarger sums of high-risk growth capital, from advice on operations andgovernance to replication and growth strategies.Star People: To improve your local area, UnLtd provides awards ofbetween £500 and £15,000 and support to help develop ideas,understand budgets and gives opportunities to network and skills (seesection 3.3.x BIG Local).From time to time UnLtd runs separate awards and competitions, andmanages awards on behalf of others, for example:Big Venture Challenge: See Competitions and Challenges below.Live UnLtd: For people aged 11-21 years old who want to change theirworld for the better, Live UnLtd provides awards of up to £5,000 andsupport to launch their project.Higher Education Support: UnLtd has partnered with over 50universities to provide support to university staff, current students orrecent graduates with a passion to create positive social impact.UnreasonableInstituteThe Unreasonable Institute unites 10 to 30 entrepreneurs(Unreasonable Fellows) each year from around the world to live inColorado for six weeks and receive training from 50 mentors. Fellowsform relationships with 25 investment funds, receive legal advice anddesign consulting, and pitch to hundreds of potential investors. Thegoal is to accelerate these ventures so they can scale to meet theneeds of at least one million people each.The 2013 Institute will be open to teams for the first time ever, and willrun from 12thJune to 24thJuly 2013.
  • 59. 59We help social entrepreneursraise capitalCompetitions and ChallengesBen & Jerry’s‘Join Our Core’Ben & Jerry’s ‘Join Our Core’ competition looks for businesses whichare socially responsible and bringing about positive change in theircommunities.Industry: Sustainable and socially-responsible businesses.Who can apply: Anyone aged 18-34 years old with a business offeringproducts that are in long-term demand in their local area and that havea positive social impact and environmental awareness.Location: Entrants must live in the UK, Ireland, Denmark, Sweden orthe Netherlands, but the business itself can run in any country.Prize: €10,000 cash prize, six months of mentoring from Ashoka, 10days of social business knowledge-sharing and working with localfarmers in Uganda with VSO, and business advertisement on Ben &Jerry’s new flavour of ice cream104.Big VentureChallengeThe second cycle of the Big Venture Challenge (BVC) programme runby UnLtd is designed to help 100 social entrepreneurs successfullyraise investment and rapidly grow their ventures.The submission deadline was 8thFebruary 2013.Industry: Any social enterprise.Who can apply: Organisations based in England that are less than 5years old and seeking investment funding of between £50,000 and£250,000 to achieve their ambitions.Location: England.Prize: Business support, expert connections and match funding ofbetween £25,000 and £100,000 to help raise the high-risk growthcapital. During 2011 and 2012 the BVC pilot supported 25 socialventures to reach scale105.Dell SocialInnovationCompetitionThe Dell Social Innovation Competition (DSIC) is a global competitionfor student social entrepreneurs, with plans to grow to 20,000 entrieseach year by 2016.Industry: Economic development, education, energy and development,food and sustenance, health and human rights.Who can apply: University students worldwide.Location: US-based.Prize: Teaching and training, start-up capital and access to a network ofmentors and advisors. In 2011, five cash prizes totalling $100,000 wereawarded. The 2012 challenge presented 27 awards, more than104Join Our Core 2012 winners were Archipelago, Fairmail, Mattecentrum, Play 31 and Rubies in the Rubble105BVC 2011-2012 award winners
  • 60. 60We help social entrepreneursraise capital$350,000 in cash and in-kind prizes, including a Grand Prize of $50,000.Dragon CommunityPartners AwardThe Community Partners award recognises good practice andinnovation by community-based organisations in working withbusinesses and facilitating their involvement in the community. Itcelebrates ways in which effective partnerships are built and maintainedso that the benefits of corporate involvement (and employeevolunteering) are maximised.Applications for the 2013 Awards open 26thMarch 2013.Industry: Corporate social responsibility. The Dragon Awards do notrecognise or reward environmental initiatives.Who can apply: Community organisations, schools and socialenterprises.Location: Greater London.Prize: Dragon statuette, local and national press coverage andrecognition amongst peers and competitors106.Emerge VentureLabEmerge Venture Lab (also see section 4.3) invests risk capital,improves management capacity and provides free professional servicesto an annual cohort of 10 start-ups.Industry: Education, healthcare and energy.Who can apply: Strong teams with scalable, early stage ideas forsustainable businesses that address a gap in the market and deliver asignificant social impact. The Lab may also solicit open applicationsmidway through the programme and accept ventures that are at arelatively advanced stage of development.Location: London.Prize: £5,000 investment per founder; mentoring and training; freeoffice space for three months; and access to pro bono support. As ofFebruary 2013, Emerge has supported 22 start-ups107.Foster School ofBusinessGlobal SocialEntrepreneurshipCompetitionThe Global Social Entrepreneurship Competition (GSEC) is aninternational student social business plan competition that challengesuniversity-led students worldwide to use business principles to createsustainable, positive solutions to some of the developing world’s mostchallenging issues.Industry: Social venture plans that aim to alleviate problems indeveloping economies – poverty, health and development.Who can apply: Social entrepreneurs worldwide.106Dragon Community Partners Award previous winners include Guy Fox Project (2012), Body and Soul (2012),St Luke’s Trust (2011), Hidden Art (2010)107Emerge track record
  • 61. 61We help social entrepreneursraise capitalLocation: US-based (University of Washington).Prize: Semi-finalist student teams travel to Seattle for a week ofcompetition events and to present their ideas to investors and judges.GSEC 2013108will award at least $34,000 in prizes plus in-kind awards,as well as coaching and mentoring from health, development andbusiness professionals, and exposure to an extensive network ofprofessionals and companies109.Global SocialVentureCompetitionThe Global Social Venture Competition (GSVC) is a global socialbusiness plan competition to launch the next generation of socialentrepreneurs founded by MBA students at UC Berkeley’s Haas Schoolof Business.Industry: Any.Who can apply: Social entrepreneurs worldwide.Location: US-based (UC Berkeley).Prize: $50,000 in prizes (1stplace: $25,000; 2ndplace: $10,000; 3rdplace: $5,000; and remaining $10,000 is distributed through a People’sChoice award and special awards), mentoring and exposure110.Goldman Sachs10,000 SmallBusinessesProgrammeThe 10,000 Small Businesses Programme is “an investment to helpentrepreneurs create jobs and economic opportunity by providinggreater access to education, capital and support services” deliveredthrough a network of local partners.Industry: Any.Who can apply: Small business and social enterprise leaders withscalable business models that want to grow their business and createlocal employment.Location: London, Yorkshire, Midlands and North West England.Prize: Practically-focused business and management educationdelivered over twelve sessions, lasting approximately 100 hours.108GSEC 2013 Teams109GSEC 2012 winning teams110GSVC 2012 winning teams
  • 62. 62We help social entrepreneursraise capitalLloyds BankingGroup and Schoolfor SocialEntrepreneursProgrammeThe School for Social Entrepreneurs (SSE) runs mentoring andnetworking programmes across the UK, focusing on training and earlyseeding support. The programme’s total current investment of £14m111means it will be able to double the number of areas it works in, helping1,100 aspiring social enterprises transform disadvantaged communities,with the potential to create over £20m in social value and more than4,000 jobs each year.Industry: Any.Who can apply: Individuals who are leading (‘Scale Up’ grant) orplanning (‘Start Up’ grant) to set up a project or social enterpriseorganisation which will create social change.Location: UK.Prize: A £15,000 Scale Up grant or a £4,000 Start Up grant will beawarded, in addition to a place on an SSE learning programme. TheLloyds Banking Group Social Entrepreneur of the Year Award, whichincludes a place on the national Scale Up SSE learning programme anda £25,000 grant, is given to a Scale Up applicant who demonstratesoutstanding potential.Skoll Awards forSocialEntrepreneurshipThe Skoll Award recognises social entrepreneurs whose proveninnovations have demonstrated impact on some of the world’s mostpressing problems and whose organisation has the potential to beindividually successful and catalyse large-scale, system-level change.Industry: Deforestation; education and economic opportunity; effectivedevelopment; healthcare access and treatment; smallholder productivityand food security; peace and human security; sustainable markets; andwater and sanitation.Who can apply: Social enterprises that have a track record of makingsignificant impact and are positioned to continue to have influence on alarge scale.Location: UK-based.Prize: Funding to grantees (sum not specified) to be paid over threeyears, connection to the Skoll network of more than 900 socialentrepreneurs and innovators at the Skoll World Forum on SocialEntrepreneurship and on the Skoll World Forum Online.111£5m investment from Lloyds on its launch, £2m from Nominet Trust and £6.9m from BIG in November 2012.These investments build on the original £6m investment from Lloyds with additional funding from social investor,the Nominet Trust.
  • 63. 63We help social entrepreneursraise capitalx. Public Bodies and UK Government FundsIn recent years, and particularly in the aftermath of the 2008 recession, government funding hasbecome scarcer and more competitive to access. There are a number of public bodies, programmes,initiatives and funds which support social enterprises in various ways.Big Lottery Fund The Big Lottery Fund (BIG) is a non-departmental public body sponsoredby the Cabinet Office. It is responsible for distributing 40% of all fundsraised for good causes (about 11 pence of every pound spent on aLottery ticket) by the National Lottery. This totals around £600m eachyear.BIG awards grants from £300 to over £500,000 to organisations rangingfrom small local groups to major national charities. Since June 2004 BIGhas awarded over £6bn to projects supporting health, education,environment and charitable purposes112. 80-90% per cent of its funding isawarded to voluntary and community sector organisations, others includethe private and public sector and individuals. It delivers fundingthroughout the UK, mostly through programmes tailored specifically tothe needs of communities in England, Scotland, Wales or NorthernIreland, as well as some programmes that cover the whole UK.In November 2012, BIG announced awards totalling almost £15.5m totwo major England-wide programmes that will provide financial supportand mentoring for social entrepreneurs: UnLtd received just over £8.5mto run the next phase of the Big Venture Challenge (see Competitionsand Challenges) and The School for Social Entrepreneurs received£6.9m to expand their Lloyds Banking Group Social EntrepreneursProgramme.BIG Assist BIG and the National Council for Voluntary Organisations (NCVO) “havecome together for a new £6m initiative to help voluntary sector supportand development organisations become more effective. The Assistprogramme is the first stage of BIG’s Building Capabilities for Impact andLegacy approach. It is a new approach in providing capacity-buildinginvestments, as the majority of funding will go directly to local supportand development organisations. These organisations will then be able tochoose what support they need in order to adapt their services tochanging needs, funding and expectations of frontline organisations.”An estimated 1,400 organisations in England will be eligible to apply forfinancial assistance (in the form of vouchers) to pay for training,consultancy and other development support.Awards are expected to range between £2,000 and £7,000 and will begiven out in categories including strategy and planning, financialsustainability and developing strategic relationships.BIG Local In December 2012, BIG announced the final 50 areas113that will receivefunding from its BIG Local scheme. BIG invested £200m in 150 urbanand rural communities around England that have been overlooked for112BIG’s funded projects113BIG Local areas
  • 64. 64We help social entrepreneursraise capitalfunding in the past. The funding was invested as a charitableendowment, with at least £1m allocated to each community to be spentover the next decade and make a lasting positive difference to theircommunities.BIG Local is being run by Local Trust, an independent organisation thatis working with local areas to help them decide how to spend theirallocations.BIG Next Steps:Supporting SocialInvestment inEnglandBIG Next Steps is a lottery-funded programme set up to support thedevelopment of new social investment vehicles (such as SIBs). SinceMarch 2012, BIG has awarded money to 13 organisations; this includessupport for a £30m investment fund to provide specialist housing to thosewith learning disabilities, and a £4m retail bond to reduce care placementdays.The experiences and learning from Next Steps has also helped informBIG’s future social investment interventions in England, which include thedevelopment of two new funds114, launching in 2013:Investment ReadinessFundThe first of these is an investment readiness fund, which will complementthe Cabinet Office’s £10m Investment and Contract Readiness Fund(ICRF) and launched in the first half of 2013 to deliver up to £10mfunding over three years. It aims to assist social sector organisationswishing to start on an investment journey in order to deliver social andcharitable impact at greater scale and sustainability. The need forsupport in this area was demonstrated in a research report intoinvestment readiness published by BIG115.Outcomes PaymentFundThe second is a co-commissioning fund that will contribute towardsoutcome payments for new SIBs (see Social Outcomes Fund below) andsimilar investment instruments. The aim is that this funding shouldfacilitate greater commissioner participation in this emerging part of themarket and enable more social sector organisations to deliver betterpreventive services via PbR contracts (see section 3.2.vii).BIG Fund BIG Fund distributes non-Lottery funding on behalf of public bodies, suchas the Department for Education and the Office for Civil Society.Social Incubator Fund Until 2015, BIG Fund is administering the £10m Social Incubator Fund forthe Cabinet Office, which specifically targets social incubators to helpthem provide investment and support to early stage social ventures.Early InterventionFoundationIn November 2012 the Early Intervention Foundation (EIF) Consortium,led by 4Children and made up of 30 children’s charities, was awarded£3.5m by the Department of Education to run the EIF for two years, afterwhich it will become self-financing. The EIF will champion earlyintervention and provide advice and support to local commissioners on114D. Kanani (28 Nov 2012) ‘Big Lottery Fund gives a £15.5m boost to social enterprises’, The Guardian115ClearlySo & NPC (July 2012) ‘Growing the Social Investment Marketplace: Investment Readiness in the UK’
  • 65. 65We help social entrepreneursraise capitalevidence, social finance and PbR, to help them choose early interventionprogrammes. It will also gather evidence and research for what works forearly intervention in the UK.EducationEndowment FundSee section 3.3.vii.EnergyEntrepreneursFundThe DECC allocated £35m to the Energy Entrepreneurs Fund, which willhelp innovators and entrepreneurs develop and demonstrate low carbontechnologies. Applicants can apply for up to £1m funding, which they canthen use to leverage additional funds from private sector investors, andare also able to get support from experts on how to bring their productsto market.The first phase, in which £16m of funding was available, is closed toapplications. A second phase will be launched in early 2013 with theremaining £19m.Green InvestmentBank PlcThe UK Green Investment Bank (GIB), formally launched in November2012 after receiving state aid approval, is the “world’s first investmentbank solely dedicated to greening the economy”.GIB has been capitalised with £3bn to assist the UK’s transition to agreen economy and address market failures affecting greeninfrastructure projects in order to stimulate a step up in privateinvestment. In December 2012 GIB made its first direct investment,loaning £45m to the owners of the Walney offshore wind farm116.Innovation inGiving FundThe Innovation in Giving Fund, launched in September 2011, is a £10mfund established by the Office of Civil Society as part of a £34m packageto increase levels of social action. The fund is managed by Nesta (seesection 3.3.vii) and aims to invest in, support and grow innovative ideasthat bring about a step-change in levels of giving and exchange andwhich have a credible route to being self-sustaining in the longer term.Mutual SupportProgrammeThe Mutual Support Programme (MSP) is administered by the CabinetOffice and has made £10m available to provide mutual organisations orgroups of staff with professional services to assist them in businessdevelopment. Services to be purchased by the Cabinet Office includeHR, legal, financial, tax and business planning, and will be particularlyfocused on organisations at the ‘pre spin-out phase’, though others willbe considered.116GIB was one of the five banks brought in to lend a total of £224m re-financing OPW’s 24.8% stake.
  • 66. 66We help social entrepreneursraise capitalIn June 2012, the first awards from the fund were allocated to threepublic sector spin-outs for schools, arts and youth services117.ScottishEnterpriseScottish Enterprise is supported by the Scottish Government and worksto support the business environment in Scotland. It provides advice onthe type of funding a business may be eligible for and guidesentrepreneurs through the application process. It also provides servicesto assist business growth, such as improving efficiency and accessingnew markets.The SIB Group The SIB Group is made up of the charity, Adventure Capital Fund, and itssocial enterprise, The Social Investment Business (TSIB).TSIB brings finance, knowledge and expertise to help civil societyorganisations thrive – improving their infrastructure, increasing theircapacity and helping them bid for, and win, public service contracts. Itis a specialist fund manager and has made and managed over 1,300investments in civil society organisations, ranging from under £5,000 toalmost £7m. TSIB invests in viable, non-bankable projects facilitatingtheir move into more enterprising ventures; strengthening them, investingin excellence and bringing to scale the most innovative ideas.See below for more information on funds managed by TSIB118.Big VentureChallengeThe Big Venture Challenge (BVC) supports ambitious socialentrepreneurs with access to finance, business support and powerfulconnections to help them scale their ventures (see section 3.3.ix).Open to applications until 8thFebruary 2013.Community Assetsand Services Grant£26m is available to help voluntary organisations take over the running ofpublic services in their communities or take over the management orownership of land or buildings in community use. The Community Assetsand Services Grants will complement the wider Community Assets andServices Support Programme which includes an advice service run byLocality (see section 4.2).Grants are available now on a rolling basis.Investment andContract ReadinessFundThe Investment and Contract Readiness Fund (ICRF) is a three year,£10m fund administered by TSIB on behalf of the Cabinet Office. It aimsto support organisations119that seek to raise at least £500,000investment, or bid for public sector contracts over £1m. An organisation’s117MSP contracts awarded118TSIB managed funds119Social enterprises, social businesses, charities, voluntary and community organisations
  • 67. 67We help social entrepreneursraise capitalinvestment readiness needs must be assessed, costed and then appliedfor in partnership with a lead investment readiness support provider (seesection 4.2). The fund supports these organisations to becomeinvestment or contract ready by providing grants of between £50,000 and£150,000 per partnership.Grants are available on a rolling basis until at least September 2013.For a list of approved services providers of this fund see section 4.2.Please see section 4 for more information about business support andinvestment readiness services.Modernisation Fund The Modernisation Fund is a £9.5m fund, managed by TSIB on behalf ofthe Office for Civil Society, which provides interest-free loans of between£30,000 and £500,000 to help organisations be more resilient to theimpact of the economic downturn.The fund is currently closed.Social Action Fund The Social Action Fund is a grant fund of over £20m run by TSIB onbehalf of the Office for Civil Society. The Fund aims to inspireorganisations to create new social action opportunities through peoplegiving what they have, be that their time, money, assets, knowledge orskills.The fund is currently closed to new applications.Social EnterpriseInvestment FundThe Social Enterprise Investment Fund (SEIF) is managed by TSIB andLocal Partnerships (see section 4.2) on behalf of the Department ofHealth. The Fund has invested more than £100m in over 600 socialenterprises involved in the delivery of health and social care services,including disability, mental health, substance misuse, carers’organisations and supporting people with long term conditions120. TheSEIF investment package includes grants and loans and supportsorganisations at different stages, helping them become investment readyand then to scale up and grow.The fund is investing a further £19m and is open to applications untilMarch 2013. All existing social enterprises working in health and socialcare, including public health and children’s services, are eligible to apply.Right to Requests and Right to Provides working in health and socialcare that are yet to spin-out are also eligible.The SocialInvestment FundIn mid-2012, the Northern Ireland Executive launched an £80m funddesigned to tackle economic deprivation and dereliction. The first phaseof the fund will run until March 2016 and aims to support projects thatreduce poverty and increase community services. It is being delivered innine ‘social investment zones’: four in Belfast, one in Derry/Londonderryand four others aligned with the Health and Social Care Trusts, and120These enterprises include Jamie’s Farm, Norcare, Jets Foundation and HCT Group.
  • 68. 68We help social entrepreneursraise capitalChildren and Young People’s Strategic Partnership boundaries.Social OutcomesFundThe £20m Social Outcomes Fund is managed by the Cabinet Office andaims to deal with the main problems holding up the growth of SocialImpact Bonds (SIBs), such as the difficulty of aggregating benefits andsavings which accumulate across multiple public sector spending ‘silos’in central and local government. It only operates in England, with fundingavailable to government departments, local councils and othercommissioning bodies, such as police forces or the clinicalcommissioning groups.TechnologyStrategy BoardSee section 3.3.ix for discussion about competitions run by theTechnology Strategy Board.UnLtd See section 3.3.ix for discussion about awards available from UnLtd.There are a number of Government ContractProgrammes which may be of interest to socialenterprises, some of which are listed below:Framework for the Provision ofEmployment Related Support ServicesDWP Innovation ProgrammeDWP European Social FundProgrammeDWP Work ProgrammeMinistry of Justice Re-offenderProgrammeAll new central government contracts over£10,000 are published on Contracts Finder.Scotland, Wales and Northern Ireland haveseparate public sector procurement websites;Wales: Sell2WalesScotland: Public Contracts Scotland:Northern Ireland: eSourcing NIOther government initiatives that may be ofassistance to social entrepreneurs include:Community Right to Bid and toChallenge, developed under TheLocalism Act 2011, gives communityand voluntary groups and localauthority employees the right to submitan interest in taking over a localauthority service which must then beconsidered by the authority.Community Right to Provide enableshealth and social care staff to deliverservices through employee-led socialenterprises, mutuals, joint ventures orpartnerships.Community Shares Unit will support theuse of community shares and bonds,which will allow large numbers ofpeople to invest small amounts ofcapital in local projects without thecostly regulation involved in a standardshare issue. It will aim to support 500social ventures and back 200 shareissues.Additionally, a number of local authorities havedeveloped their own initiatives to support socialenterprises, such as the Kent Big Society Fundand the Essex County Council small grantsfund for community service. Please check on
  • 69. 69We help social entrepreneursraise capitalwebsites of relevant local authorities forupdates on such initiatives.xi. European Union FundsAt the end of 2011, the European Commissiontook a step towards setting the foundations fora strong European market for social investmentfunds. It proposed a series of actions under the‘Social Business Initiative’ to support thecreation and access to finance for socialenterprises. These include:The creation of a €90m European financialinstrument, a fund of funds will be set up tofacilitate access to funding for start-up,development and expansion of socialenterprises.Prioritizing investment in social enterprisesin the European Regional DevelopmentFund (ERDF) and European Social Fund(ESF) regulations from 2014121.The creation of a European regulatoryframework for social investment funds tofacilitate access to the financial markets forsocial enterprises. The objective is tostimulate creation of dedicated funds,enabling them to be active across thewhole of the European single market, byproviding a form of ‘EU Passport’ for socialinvestment funds.In late 2012, the regulation on European SocialEntrepreneurship Funds was presented to theEuropean Parliament and the Council (MemberStates) for negotiation and adoption under theco-decision procedure. It was expected to be inplace by the end of 2012; however, at the timeof writing no official decision has been made.121European Commission, ‘Cohesion policy of theEU for the period of 2014-2020: legislativeproposals’There is a wide range of organisations offeringdifferent types of support to social enterprisesand businesses. Whilst some are specificallyfocused on preparing organisations to be readyto seek social investment, others offer moregeneral business services and support to helpbuild sustainable social enterprises. We havesub-divided these according to key function, butmany organisations provide a number ofdifferent support services.arc is a Business in the Communityinitiative connecting social enterprises withexpert support and business opportunitiesto help them grow. arc aims to help socialenterprises create 1,000 jobs in EastLondon by 2015.Baker Brown Associates offers trainingprogrammes and research anddevelopment support to the socialeconomy.ClearlySo Tea Time is a free, monthlysession for budding or fully fledged socialentrepreneurs and mid-careerprofessionals with an interest in the sector.It is designed as a networking and ‘grouptherapy’ session where attendees canlearn from ClearlySo staff and their peers.City Action is a City of London Corporationprogramme which has been running since1998. It is a free skills-based matchmakingservice that links City-based companieswith community organisations and socialenterprises in the City and its neighbouringboroughs. In May 2012, City Actionlaunched a social enterprise initiativewhich harnesses business acumen andthe City’s entrepreneurship to strengthenand grow the social enterprise sector.Exemplas works in partnership withindividuals, business and the government
  • 70. 70We help social entrepreneursraise capitalto get people into employment, up-skillemployees for the future and improvebusiness performance.Finance Matters (NI) is an independentfinancial planning consultancy in NorthernIreland. Its core business is providing high-level independent advice on investmentmanagement, retirement and successionplanning, pensions (personal andcorporate, including auto enrolment),taxation, trust and estate planning andfinancial protection.Firstport supports new and emergingsocial entrepreneurs across Scotland. Itworks to identify, advise, connect,encourage and seed fund new start socialentrepreneurs. It also provides a fullpackage of support and resources fromfunding, advice and practical tools, andruns Evolve skill-sharing days which bringin expertise from professional volunteers.Future Business is a charitableorganisation and social enterprise based inCambridge providing business support andadvice, coaching, impact measurementand affordable workspaces across EastEngland. Future Business is an initiative ofAllia (see section 3.3.ii).Give What You’re Good At providesknowledge and expertise to build up theinfrastructure of charitable organisations.They provide a free matching servicewhere charities and social enterprises areintroduced to professionals who arepassionate about their cause.Organisations can upgrade to access theirpowerful search engine containing detailsof over 10,000 companies who supportcauses financially.GLE Group (see section 4.2)Impact Lab provides a structuredmentoring programme that offerscorporate professionals the opportunity tocollaborate with early stage entrepreneursin order to build their social ventures.Mowgli Foundation is a not-for-profitorganisation that provides mentors whoinspire, support and empowerentrepreneurs in achieving their businessand personal potential.NEXII is a social business and advisoryfirm with a mission to support and facilitatethe growth of capital flows to impactinvestments. Nexii delivers innovativesolutions and services to investors,businesses and funds that are committedto delivering ethical products and serviceswith a high social and/or environmentalimpact.Ogunte is a social innovationsdevelopment company focused onwomen-led social ventures. It is a networkof advisors and angels that providelearning programmes, connections,business support programmes and accessto equity finance, to put women at theforefront of the social economy. Ogunteboosts the pre due diligence, investmentand commissioning processes by clarifyingand assessing social enterprisesproposals, developing entrepreneurs, andhelping them articulate their social impact.On Purpose is a leadership programmethat “equips [On Purpose] Associates withthe experience, skills and networks theyneed to make a real difference in purpose-driven organisations and to become futuremanagers, leaders, employers andinnovators in the sector.” During theprogramme, Associates are paid £20,000per year pro rata to work four and a halfdays a week on two different six monthplacements with purpose-drivenorganisations, such as Comic Relief,JustGiving and O2. Every Fridayafternoon, all Associates come together forhalf a day’s training; this involves elementsof peer development and self-development, but also a formalprogramme covering commercial andsocial topics that is delivered byprofessionals from a range of private andsocial sector organisations.Social Enterprise Europe provides trainingpackages, consultancy services and aseries of guides on all aspects of socialenterprise. It works with a number ofpartners across Europe and provides aservice to those in Asia and Africainterested in developing social enterprise.Social Enterprise London (see section 4.3)
  • 71. 71We help social entrepreneursraise capitalSocial Enterprise Solutions CIC supportsthe start-up, development and growth ofsocial enterprises primarily in North WestEngland, with expertise in the spin-outprocess. They also work with and advisemany private sector organisations as theyseek to understand and engage with thesocial enterprise business model.Social Traders CIC is a social enterprise inCornwall that provides business start-upadvice, consultancy services and trainingprogrammes supporting socialentrepreneurs, social enterprises,charities, public sector organisations,community organisations and other localbusinesses.Social Value is a social venture of Profit isGood (see section 4.3) that offers socialimpact, bid writing, business developmentand mentoring support to charities andsocial enterprises.Striding Out provides leadership, businessand career coaching services for 16-30year olds that are supported by training,networking and work placement services.The School for Social Entrepreneurs(SSE) runs practical learning programmesaimed at helping develop the individualentrepreneur and their organisationsimultaneously. See the list of all the SSEsin the UK and around the world. (Also seesection 3.3.ix Lloyds Banking Group andSchool for Social EntrepreneursProgramme).The Wise Group is a social enterpriseconducting projects across Scotland andthe North East England to meet socialneeds. It also offers learning services andtraining programmes for businesses andsocial enterprises, local authorities andthird sector organisations throughWiseLearning.Barchester Green Investment is anIndependent Financial Adviser (IFA)specialising in socially responsible,environmental and ethical investment.Bates Wells & Braithwaite London LLP is acommercial law firm servicing a wide rangeof commercial, statutory, charity and socialenterprises. In particular, it has a socialfinance practice and offers advice on legalstructures.Baxi Partnership offers support fororganisations that are, or want to become,employee-owned. The support offeredcovers four different areas, though manyclients will draw on more than one,including: getting started (or transitioninginto employee ownership), getting the mostout of employee ownership, support withlocating funding, and opportunities to workwith Baxi Partnership as a full businesspartner.Beacon CIC is a social enterprise thatworks at all levels of government and withvoluntary organisations and charities toenhance their impact and effectiveness inachieving positive change.Buzzacott provides accounting services tocharities and voluntary groups, and runstraining courses for trustees, financepersonnel and others.Charities Evaluation Services providessupport and advice on quality andevaluation systems for the voluntary sectorand has a wide range of tools andresources available on its website.Eastside is a professional services firm thatadvises on the development, funding andgrowth of civil society organisations throughthree areas of activity: providing supportservices, building social innovationsthrough its ventures and sharing knowledgeand profits back into the sector through itsFoundation.Ethical Investors offers IFA service with atrack record in providing investmentproducts for clients that offer social andenvironmental returns as well as financialreturns.Future Business (see section 4.1)
  • 72. 72We help social entrepreneursraise capitalGaeia is a firm of IFAs and specialists inenvironmental and ethical investment.GLE Group is a provider of services,products and investment in finance forbusiness, enterprise development,business accommodation and consultancyservices.Inspire2Enterprise is a service provided byThe University of Northampton anddelivered by Exemplas (see section 4.1). Itis a free-to-access service for the socialenterprise sector providing information,specialist advice and support from start-upthrough to initial growth and beyond. Thisservice is available to social enterprises inthe UK.new economics foundation (nef) is anindependent think tank. nef consulting isthe social enterprise and strategicconsultancy arm of nef and is involved inwell-being measurement, social valuationinto cost-benefit analysis and hardeconomic evaluation.New Philanthropy Capital (NPC) is aconsultancy that helps charities andphilanthropists find solutions to thechallenges they face; whether they aretrying to work more effectively, exploringnew ways of working, or setting out toprove their worth. NPC’s consultingservices include strategic advice, research,impact measurement, grant making supportand training.Numbers4Good provides innovative andsustainable financing solutions for thefunding of sustainable businesses. Itprovides capacity building services to socialenterprises and sustainable businessessuch as business and financialconsultancy, financial innovation and newproduct development and fundraisingsupport.NEXII (see section 4.1).Partner-up is a matching service for civilsociety with the aim to create anindependent marketplace where charities,social enterprises and housing associationscan explore partnership options andreceive support in making decisionsregarding which organisations to speakwith, and how.Social Enterprise Europe (see section 4.1)Social Finance Ltd offers due diligenceservices to investors considering specificinvestments. It also provides advisoryservices on social investment, productcreation, and the use, application andimplementation of Social Impact Bonds(see section 3.2).Social Traders CIC (see section 4.2).Social Value Lab is a national hub for socialsector research and action. It works acrossthe UK and internationally conductingresearch, gathering evidence, influencingpolicy, creating new social ventures andsupporting others to do the same.Thomson Reuters TrustLaw is a global hubfor free legal assistance. TrustLaw Connectwas launched in June 2010 with the aim ofspreading pro bono work globally andhelping lawyers put their professional skillsto work for NGOs and social entrepreneurswith limited means. Social entrepreneursapply to TrustLaw to become a member ofthe community and then send in their legalrequest through the site. TrustLaw thenrefines the request before it is shared withthe lawyers.The following organisations are also approvedICRF providers (see section 3.3.x). Socialventures can only apply to the fund inpartnership with an approved provider.Association of Chief Executives ofVoluntary Organisations (ACEVO)supports, develops, connects andrepresents third sector leaders and offers avariety of services to its members includingaccess to a wide range of professionalpublications, management consultancyservices and free helplines covering areassuch as HR, fundraising and accountancy.Advantage Business Agency is a firm ofchartered certified accountants andbusiness consultants providing expertadvice to social enterprises with anambition to grow and innovate. Its businessdevelopment services are designed to meetall stages of an organisation’s growth.
  • 73. 73We help social entrepreneursraise capitalATQ Consultants LLP is an expert in publicservices and government contractingmarkets. It helps organisations bidsuccessfully for contracts and raise capitalto finance them, especially wherepayments are linked to outcomes throughPbR or SIBs.Banks Cannell LLP is a mutual thatspecialises in providing businessdevelopment packages to people in thepublic sector (health, social care andeducation), so they can become successfulsocial enterprises.Bates Wells & Braithwaite London LLP (seeabove).Bidright UK provides a full contractreadiness package including end-to-endbidding services, consortia developmentand contract set-up or management. Itsareas of expertise include public sectorcontracts, regeneration and disadvantagedgroups, including NEETs, the disabled andoffenders.Bridge Consulting provides organisations inthe public and third sectors with practicalsolutions and addresses areas such asleadership, strategy, management, marketfocus, market entry, internal systems,financial structuring, raising finance andinvestor and contract readiness.CAN offers a range of services, experienceand advice including business and financialmodelling, investment readiness, strategy,impact measurement and governance tosocial enterprises and trading charities fromacross different industries and geographicallocations.Claridge Capital is an advisory businessproviding solutions for small companiesseeking investments of less than £5m. Itoffers services to allow social enterprises tobecome investment-ready, whichcomprises of strategic advisory includingthe preparation of all necessarydocumentation, corporate finance includingstructuring deals and financial modelling,and investment mediation.ClearlySo provides corporate finance andfinancial advisory services to socialbusinesses and enterprises to strengthenand articulate an investment case to raisecapital. It offers an investment brokerageservice between social businesses andenterprises that are raising capital andinvestors. Its investor distribution networkencompasses High Net Worth Individualsand leading institutional investors, includingfoundations, impact investment funds,banks and corporates.Cogent Ventures is a provider of businessadvisory support to social enterprises andcharities that provide health, social care,housing or other community-basedservices. Core areas of expertise includestrategy, business planning, businessdevelopment, bid management,partnership development, corporatefinance, financial modelling, capitalprojects, governance, policy development,executive coaching and team development.Deloitte Social Innovation Pioneers (seesection 3.3 ix).Eastside (see above).Equity Development helps early stagesocial ventures build sound businessmodels that are appropriately resourcedand helps them attract external investmentso they can realise their social andeconomic potential.Gecko Programmes Ltd provides servicesin developing partnerships, project plans,tenders, project implementation andevaluation with a focus on educational,cultural and community-basedorganisations.Hogan Lovells LLP is a global law firm thatprovides legal advice with the aim ofcontract or investment readiness on issuesrelating to corporate structure, intellectualproperty, funding, employment, propertyand environmental law.Impetus Trust - The Private EquityFoundation (see section 3.3.iii).Inspire2Aspire (see above).Investing for Good (see section 3.3.viii).Locality is a UK network for community-ledorganisations that helps people to set up
  • 74. 74We help social entrepreneursraise capitallocally owned and led organisations. Itsupports existing organisations to workeffectively through peer-to-peer exchangeof knowledge and best practice oncommunity asset ownership, communityenterprise and collaboration,commissioning support, social action,community voice, community rights andregeneration. It also produces the‘Community Land Trust (CLT) Handbook’ –a complete A-Z of how to start, build andrun a CLT project. (Also see section 4.4.i).Local Partnerships manages the SocialEnterprise Investment Fund and providesguidance, support and funding to socialorganisations working in the health sector.(Also see section 3.3.x).PwC provides a range of services tosupport social entrepreneurs deliver publicservices, create and measure social impactand create a sustainable agenda. PwCruns the Social Enterprise Club incollaboration with the School for SocialEntrepreneurs and Social Enterprise UKand operates the Fire Station in co-locatedpremises. (Also see section 4.5).Pulse Regeneration is a UK consultancyspecialising in the development of socialventures and providing investment andcontract readiness support to start ups,SMEs and private businesses.Resonance (see section 3.3.ii).The Social Enterprise Support Centre(SESC) delivers support services to thesocial enterprise sector through itsnetworks, events, communications,workshops and consultancy. It specialisesin business planning, strategicdevelopment, market development,marketing and sales and branding.Social Finance (see section 3.3.viii).Stepping Out (see section 3.3.viii).Triodos Bank (see section 3.3.v).Listed below are some examples ofconsultancies that help organisations withsocial impact measurement.CAN Impact provides Social Return onInvestment (SROI) reporting and helpsorganisations account for theirachievements, attract funding andmaximise their social impact.Head & Heart Economics provides short-term consultancy for social issues usinganalysis to uncover insights for central andlocal government, criminal justice agencies,social enterprises and charities.Intentionality provides consultancy, supportand advisory services to social enterprisesin order to enhance their service provision,increase their sustainability and measuretheir social impact.Keystone helps organisations develop newways of planning, measuring and reportingon their social change results.Make It Happen Consultancy supports UKorganisations in income generation andsocial value and impact. It also sits on theUK council for the SROI network.nef consulting (see ‘new economicsfoundation’ above)NPC (see ‘New Philanthropy Capital’above)Pro Bono Economics matches economistvolunteers with charities who want toaddress questions around measurement,impact and results.Social Impact Consulting is an affiliatednetwork of researchers and consultantsexperienced in understanding socialproblems and delivering social impact inthe public, private and third sectors.Social Value Lab (see above).The Social Investment Consultancy (TSIC)is an international consulting firm that usesmodels of social enterprise, revenuegeneration, impact investment and venturephilanthropy to help businesses, charitiesand philanthropists maximise their impact.
  • 75. 75We help social entrepreneursraise capitalThis section lists those organisations that runprogrammes and initiatives to develop start-upsocial businesses. See section 3.3.ix foradditional information.Accelerator is a business incubatorspecialising in business developmentprogrammes for high value, innovative,growing businesses in information andcommunication technology, interactivemedia, e-learning and design. It offers afairly loose incubator programme, eitherphysically, providing office space for start-up businesses, or virtually providingtraining and networking events and somelimited business support services.The Social Incubator Fund providesintensive support to start-ups to enablethem to take advantage of socialinvestment opportunities so they betterserve communities and people most inneed. Start-up social ventures are now ableto access intensive support through thisnew £10m fund launched by the CabinetOffice in July 2012.Berti Green Accelerator selects threebusinesses in the cleantech sector annuallyfor the Berti Green Accelerator programmeto receive six months business support andexpertise from Hamilton Bradshaw ImpactPartners and the opportunity to receivefunding of up to £1m each from BertiInvestments.Bethnal Green Ventures is an acceleratorprogramme for social technology start-ups.Once a year, it selects and works with agroup of very early stage companies andprovides them with up to £15,000 ofinvestment and a three month programmeof support. The programme supports arange of organisations including healthcare,education, unemployment and technologyto generate alternative energy.Deloitte Social Innovation Pioneers (seesection 3.3.ix).Emerge Venture Lab supports studentsocial entrepreneurs in developing theirventures. Founded in 2009 by the SkollCentre for Social Entrepreneurship andStudent Hubs at Oxford University, itenables students to gain access to anextensive network of businessprofessionals, seed investors and peerentrepreneurs. It delivers a highly selective,mentorship-based accelerator programmeto an annual cohort of entrepreneurialstudents and recent graduates.Fund Invest and Grow (FIG) offers apragmatic new approach to investing inyoung entrepreneurs. FIG works withyoung entrepreneurs, specificallyundergraduates and graduates of the pastfive years, to see them crystallise theirideas, support them through thedevelopment of their business plans andintroduce them to suitable investors. FIGholds events which are aimed at bothattracting and supporting the youngentrepreneurs and catering for theFIGureheads at the Pitch to Investor (PTI)events where they are able to meetcarefully selected entrepreneurs and seetheir pitches.Global Accelerator Network provides aseed-stage, mentorship-driven acceleratormodel and includes over 50 acceleratorsfrom six continents around the world. Itsmembers and founders receive support,networking opportunities and access tonew talent and ideas via its applicationsystem.Growth Accelerator provides support forhigh growth businesses. It has a nationwidenetwork of 800 experts who provide advicein innovation, business development,access to finance and leadership skills.Make a Wave - Pre-Incubator is a learningand co-mentoring programme run byOgunte (see section 4.2) which selects 12women social entrepreneurs to benefit fromsix visits and access to women angels andimpact investors. In addition, participantsconnect with a personal angel and receiveover 30 hours contact time withprofessionals and peers for a businessdevelopment opportunity.Nexters is the Big Society Networks (seesection 4.5) programme to support the UKsbest social entrepreneurs. Backed byfoundations, philanthropists, businesses
  • 76. 76We help social entrepreneursraise capitaland social investors, the programmeprovides finance, mentoring and businessdevelopment support for entrepreneurswho are building scalable, high impact andsustainable businesses. It has identified 20enterprises as the first Nexters. All Nextersare developing new ways to enable peopleto either give (time, expertise, money) orengage democratically with public servicesand civil society. All are using networkedtechnologies (web, mobile or games) toensure their services can scale formaximum impact and be accessible toeveryone in the UK.Profit is Good Ltd is a social ventureintermediary that sets up and supportsindependent profitable businesses andprojects which have an integral socialpurpose and reinvests profits to meet thispurpose. The organisation is guided bysocial values of collaboration,transparency, sustainability and creativity.RSA Catalyst provides grants of up to£7,000 and non-financial support for new orearly stage RSA Fellow-led ideas that aimto have a tangible and positive socialimpact. (Also see section 4.4).Sarah Dodds Enterprise Accelerator(SDEA) matches early stage socialinitiatives with high-quality MBA graduatecalibre individuals for internships that willfocus on capacity-building and investmentreadiness.The Accelerator by Young FoundationVentures is a four month programmeintended to accelerate small but successfulsocial enterprises; combining tutoring,business support and social investment.Ventures currently being incubated includeYoung Advisers, The PhilosophyFoundation and The Giving Machine.Wayra is a Telefónica Digital initiativewhose main aim is to promote innovationand identify talent in Latin America andEurope in internet and new information andcommunication technologies. Its globalproject acceleration model helpsentrepreneurs develop, providing them withtechnological tools, qualified mentors, acutting edge working space and thefinancing required to accelerate theirgrowth.Social ventures are developing across theworld, on every continent and in manycountries – our directory evidences this growingmovement. Activity is intensifying and changingpace. A diverse and extensive community ofbusiness networks has emerged to give socialentrepreneurs a collective voice, acceleratecollaboration, exchange successes and failuresand provide professional services. Below is anextensive breakdown of those networks andsupport organisations that are serving thisdynamic and diverse sector.i. UK and Ireland3SC is a membership organisation thataims to promote members’ services aroundemployability, skills, social housing andhealth care to commissioners, customersand wider society. It also unites a range oflocal civil society delivery organisations tobid for and deliver public service contractsthrough innovative solutions and effectivepartnership working.Big Society Network supports and developstalent, innovation and enterprise to deliversocial impact.CIC Association connects the CommunityInterest Company (CIC) (see section 6)community thereby enablingcommunication between all CICs andbuilding a single online marketplace fromwhich to trade, attract investors, raiseawareness levels and disseminateinformation and best practice.Clinks supports, represents and campaignsfor the voluntary and community sectorworking with offenders in England andWales.Co-operatives UK is the national trade bodythat campaigns for co-operation and worksto promote, develop and unite co-operativeenterprises. It works to promote the co-operative alternative across many sectorsof the economy from high street consumer-owned co-operatives to pubs and footballclubs, healthcare to agriculture, creditunions to community owned shops.
  • 77. 77We help social entrepreneursraise capitalEco-connect is the UKs cleantech tradeassociation and connections hub. It offersbusiness support, investment, networkingand collaboration throughout the greenindustry and cleantech sector throughnetworking forums, workshops,introductions to capital, grant fundingsupport, educational resources and news.Green Monday is an independent platformthat helps companies to build moresustainable businesses from theperspective of core business strategy. TheGreen Monday debate is for thoseinterested in changing your business modelto beat rising commodity prices, executinga ‘green change management’ programmeor want to know what the leaders are doing.Guardian Social Enterprise Network (seesection 7.2).i-Probono is an online network thatconnects organisations in need of legalassistance with lawyers and students whowant to use their legal skills for the publicgood.Invest Northern Ireland provides a guide towhere social enterprises can go for supportin developing their businesses122.Locality operates a nationwide network ofsettlements, development trusts, socialaction centres and community enterprises.Members gain access to a network ofexpertise, hands-on support from Localitystaff and help shape the national voice ofcommunity-led organisations.National Council of Voluntary Organisations(NCVO) is the “largest umbrella body forthe voluntary and community sector inEngland, [giving] voice and support to civilsociety”. See also its KnowHow NonProfitwebsite.National Council for Voluntary YouthServices (NCVYS) is a network of over 280national organisations and regional andlocal networks that work with and for youngpeople. NCVYS manages the Catalyst122Invest NI (Oct 2011) ‘Social Enterprise Adviceand Support Network: Financial support’consortium, which brings together theNational Youth Agency, SE UK (see ‘SocialEnterprise UK’ below) and YoungFoundation in youth policy initiatives. Aspart of its remit it seeks to develop aspecialist finance ‘retailer’ to provideinvestment to social ventures which supportthe youth sector.Plymouth Social Enterprise Network is afocal point for the social enterprise sectorwithin Plymouth. It provides a way for socialenterprises to exchange information, ideasand expertise and helps to strengthen thesector.Royal Society for the encouragement ofArts, Manufactures and Commerce (RSA)is a network and membership-basedorganisation committed to findinginnovative practical solutions to today’ssocial challenges. It holds various events,runs projects, pilots social innovation ideasand encourages cross-disciplinary thinkingthrough its global network of 27,000-strongmembers (called Fellows). (Also seesection 4.3).Social Entrepreneurs Ireland identifies,invests in and supports socialentrepreneurs and the organisations theylaunch. It also works with socialentrepreneurs’ network, partners andsupporters to promote socialentrepreneurship at local, regional andnational level throughout Ireland.Social Enterprise UK publishes research,provides information and tools, sharesknowledge, builds networks, raisesawareness and campaigns to create abusiness environment where socialenterprises can thrive. Those involved areSocial Enterprise UK members, consistingof social enterprises as well as privatebusinesses, charities and public sectororganisations who support their vision –where social enterprise is the usual way ofdoing business. Individual regionalnetworks are listed below. It provides arange of online tools, resources, events,training courses and advice and researchlinks of interest.Social Enterprise Works offer expertguidance, support and training to helpsocial enterprise grow, develop and
  • 78. 78We help social entrepreneursraise capitalsucceed. They offer business advice,training and consultancy across the regionand work with a wide range of clientsincluding CICs, Charities, Coops,Community Associations and the PublicSector.Social Firms UK is the national supportorganisation for the development of theSocial Firm and Work Integration SocialEnterprise (WISE) sector in the UK. Itcarries out lobbying and awareness-raisingactivities, research and practical initiativesto increase the number and ensure thequality of Social Firms in the UK. StarSocial Firm is a quality standard for SocialFirms awarded to Social Firms that haveproved the quality of their business and theemployment they provide fordisadvantaged people.SROI Network promotes the use anddevelopment of the Social Return onInvestment methodology internationally(see section 5.2). The SROI Network is amembership organisation and a companylimited by guarantee and it offers trainingand consultancy by accredited practitionersof the network.Third Sector Research Centre (TSRC) isled by the Universities of Birmingham andSouthampton, with Middlesex Universityleading on social enterprise andcontributions from the University of Kent ontheory and policy. TSRC conducts researchto provide knowledge and betterunderstand the value of the third sector.ii. EuropeEMES is a European research network ofestablished university research centres andindividual researchers whose goal is togradually build up a European interactiveknowledge base of third sector issues.Euclid Network is a growing community ofcivil society professionals who want toconnect across borders for a stronger,more innovative and sustainable Europeancivil society. Membership is open to leadersof the third sector, social economy and thenot-for-profit sector including NGOs, socialenterprises, grant makers, foundations andcooperatives. Members gain access to theirnetwork, expertise, advice, events,workshops and a bi-weekly newsletter.European Economic and Social Committee(EESC) is a consultative body that givesrepresentatives of Europes social andeconomic interest groups, and others, aformal platform to express their points ofviews on EU issues. Its opinions areforwarded to the European Council,Commission and Parliament. It has beenactive in developing position papers on theEU’s Social Business Initiative. (Also seesection 3.3.xi).European Venture Philanthropy Associationis a membership association made up oforganisations interested in or practisingventure philanthropy across Europe. Itsmission is to promote the expansion,effectiveness and impact of venturephilanthropy and social investment inEurope.Social Firms Europe is a European networkof social firms, social co-operatives, NGOsand organisations that all share theobjective of creating paid work for disabledand disadvantaged people. Members can“learn from others, network across borders,share skills and experience, trade andenthusiasm”.Social Stock Exchange Association (SSEA)aims to promote the establishment of socialstock exchanges within regular existingstock markets. SSEA believes this easesthe transition from a focus solely onfinancial return to a hybrid return of social,ecological and financial returns forinvestors. To date, there is only one suchexchange worldwide, in Brazil,implemented in 2003 by Celso Grecco atBOVESPA, the worlds third largest stockmarket. The SSEA is implementing asimilar social stock market in Portugal,within Euronext Lisbon.iii. InternationalGlobal Accelerator Network (see section4.3).International Co‐operative Alliance (ICA) isan independent, NGO that unites,represents and serves co-operativesworldwide. ICA members include national
  • 79. 79We help social entrepreneursraise capitaland international co-operatives inagriculture, banking, fisheries, health,housing, industry, insurance, tourism andconsumer co-operatives. It providesmembers with key information, bestpractice and contacts.International Society for Third‐SectorResearch (ISTR) is an internationalassociation promoting research andeducation in civil society, philanthropy andthe not-for-profit sector. ISTR membershipis open to any individual researcher,practitioner, student or organisationsupporting the ISTR mission. Membersgain benefits such as access to regionalnetworks, conferences and Voluntas(ISTR’s academic journal).Net Impact is an international not-for-profitorganisation with a mission to inspire,educate and equip MBA students, alumni,professionals, chapters, companies and theinterested general public to use the powerof business to create a more socially andenvironmentally sustainable world.Social Capital Markets (SOCAP) is anorganisation dedicated to the flow of capitaltowards social good. It runs annual events,usually in Europe and the US, that connectglobal innovators with investors,foundations, institutions and socialentrepreneurs. (Also see section 7.5).CAN Mezzanine is a charity that providesfully-serviced office space exclusively tocharities and social enterprises. Theycurrently have two central Londonlocations.Ethical Property Company (EPC) buysproperties and develops them as centresthat bring charities, social enterprises andcommunity and campaign groups together.It supports innovative and progressiveorganisations working for social change byproviding affordable office and work spaceand fair and transparent propertymanagement. EPC currently owns 15centres in England and Scotland and afurther two in Belgium.Innovation Warehouse is a membership-based community set up with support fromthe City of London Corporation, whichoffers 100 fully-serviced desks, hot-desks,meeting rooms, seminar spaces and amembers-only professional services centre.Meanwhile Space provides consultancy,brokerage and guidance for landlords, localauthorities and others interested ininnovative interim uses for empty propertyand sites so everyone can share in cultural,environmental, economic, community andsocial benefit until the spaces arereclaimed for more conventional longer-term commercial use.The Melting Pot aims to stimulate andsupport social innovation by providing co-working space for individuals andorganisations who are working for a betterworld. It also provides a Social InnovatorsIncubation Award and a peer-to-peerlearning network (see section 3.3.ix).PwC Fire Station is a building regeneratedby PwC to “house a unique combination ofpublic, private and charitable organisationsto let social enterprise flourish”.Organisations based in this building gainaccess to physical working space and PwCstaff who can offer advice and mentoring.Tech Hub provides affordable workspace totech start-ups and brings togetherinternational entrepreneurs to an existingcluster of tech start-ups.The Hub has the ambition to become aglobal network of connected communitiesthat enable collaborative ventures for abetter world. There are three co-workingspaces in London and more than 25worldwide. The Hub holds events andprovides an online network for members.
  • 80. 80We help social entrepreneursraise capitalWhether you’re a social entrepreneur juststarting your venture or a social business thathas been running successfully for years,understanding the impact you’re making is botha valuable exercise in helping you meet yourbusiness objectives as well as an essentialreporting requirement of most social investors,trustees, commissioners and otherstakeholders.With this in mind, every social entrepreneurneeds to look at what he or she is doing tochange people’s lives and protect or restore ourenvironment. To do this, you must judge whatinformation, both qualitative and quantitative, isimportant to collect, what information is feasiblycollectable in the short and long-term, and whatdirectly reflects the most important impact(s)that your business makes.However, in beginning this process of choosinga methodology for measuring impact, bear inmind the two audiences that your impact needsto be communicated to:1. Internally, your business needs tounderstand your social impact, see itmaterialise and improve the efficiency andscale of this impact in the future.2. Externally, investors and key stakeholdersneed to understand the intended socialimpact, see it materialise and capture theimpact of an action now and in the future.There are a number of tools, guides andresources that can help you find the impactmethodology that fits your objectives. Ingeneral, these developed from three differentperspectives: those of businesses, investorsand third parties. The list below describes thekey ones used currently. Note that this is anarea of great attention globally and isconstantly developing.i. Social Key PerformanceIndicators (KPIs)In the mainstream business world, KPIs areused to inform management of indicators thatare affecting the overall economic performanceof a business. However, they can also be usedby social businesses and enterprise to helpmanagement execute and improve upon socialand environmental performance. The mostimportant thing to consider when choosing touse KPIs is to align them as closely as possiblewith your core business goals: vision, mission,objectives and strategy.ii. Social AccountingSocial accounting is a process forcommunicating the social and environmentaloutcomes that are produced from economicbehaviours. Social accounting is nowcommonly used in the mainstream businessworld to produce corporate social responsibility(CSR) reports, but the method is applicable toany organisation, which has income andexpenditure. The clearest advantage commonlycited in favour of social accounting is theinvolvement of an independent and externalauditor or panel. This process involvesunderstanding an organisation’s social impactthrough consultation with its variousstakeholders, rather than a self-assessmentwhich can lead to the accusation of bias andmisinformation.A good place to start to learn more about socialaccounting is The Social Audit Network. Otherresources include Proving and Improving andthe social accounting consultancy. Also ofinterest is Prince’s Accounting for SustainabilityProject.iii. Impact ScorecardAnother way of considering social impact is toview it from the perspective of the socialinvestor. For example, Bridges Ventures, asocial private equity firm, reports to its investorson the social, environmental and economicimpacts of its investments using the ImpactScorecard approach.
  • 81. 81We help social entrepreneursraise capitalThis process begins with a ‘social screen’where a clear set of impact criteria areselected, based on the location and industry inwhich a social business or enterprise operates.Investees’ social impact is assessed against an‘impact scorecard’ to look for ways to “improvetheir community and environmental impactswhile also increasing the value of thebusinesses.” For more information on socialimpact measuring from the perspective of asocial investor visit Bridges Ventures.iv. Social Return on Investment(SROI)SROI is a tool for measuring social value byattributing a financial cost benefit to varioussocial and environmental outcomes. Throughassessing the costs of social, environmentaland economic activities one can use SROI toevaluate what a given financial investmentproduces in terms of social and environmentalvalue. For example, and very simply put, if itcosts £5,000 to invest in a training programmewhich enables a young person (who has beenstruggling to find work) to gain meaningful andsustained employment at a salary of £20,000,then SROI will assess that for every £1invested in the programme, £4 of social valuehas been created.There are a number of organisations, whichprovide support services and evaluations forsocial ventures wishing to explore SROI forassessing their social impact. Examples of Aproviders include:CAN Impact (see section 4.2).Make It Happen Consultancy (see section4.2).nef consulting (see section 4.2).Social Value Lab (see section 4.2).SROI Network (see section 4.4).v. Social e-valuator™The social e-valuator™ is an online tool,developed by Noaber and others, to enableorganisations to manage, measure andcommunicate both financial and non-financialoutcomes. This online tool is based on theprinciples of SROI and can guide organisationsthrough the process of making their socialimpact tangible. A demonstration of theprogramme is available here.vi. Global Impact InvestingRating System (GIIRS)GIIRS sets a standard for environmental andsocial performance for companies and funds. Itprovides a company or fund with a ratingmeasurement, using the IRIS framework,described below.vii. Impact Reporting andInvestment Standards (IRIS)IRIS is a common language for understandingthe social and environmental performance of anorganisation. IRIS was developed by TheGlobal Impact Investing Network (GIIN) whichis a not-for-profit organisation dedicated toincreasing the effectiveness of impactinvesting.The IRIS system provides a set of commonmetrics for organisations to use when reportingtheir impact, utilising a range of ‘indicators’which measure against performanceobjectives. These are broken down by industrysectors such as financial services, agricultureand energy. In much the same way thatfinancial accounting standards work, IRISprovides a standardised reporting methodologywhich organisations can access from IRIS’slibrary.PULSE is the technology tool that the AcumenFund uses to measure its social andenvironmental impact. PULSE adheres to theGIIN’s and IRIS categorisations.To clarify the links between theseorganisations: GIIN is the network, GIIRS is thesystem for impact measurement, IRIS providesthe standards for GIIRS and PULSE providesthe tool for IRIS.
  • 82. 82We help social entrepreneursraise capitalA good way to get an understanding of socialimpact reporting is to have a look at thosesocial enterprises that report on their impactand see how their approach might work withyour social business or enterprise. Below is abrief list of some well-known social enterprisesexploring different ways of measuring andreporting on their impact and some usefulreferences on measuring impact. We alsoinclude other documents and guides, whichhelp share best practice.Ethical Property Company’s (EPC) annualreport: The report includes EPC’s socialand environmental performance andexternal social audit results. EPC supportsinnovative and progressive organisationsworking for social change by providingaffordable office and work space and fairand transparent property management.FRC Group’s social impact report: FRCGroup is a leading social business, runningcommercial businesses that producefinancial profits and create a social dividendby giving people in poverty andunemployment the opportunity to changetheir lives.‘The Good Analyst’: Investing for Goodguide on impact measurement, written byAdrian Hornsby.‘Guidelines for How to Measure and ReportSocial Impact’: Investing for Good outlinesthe key processes involved in creating animpact measurement system and sets out aframework for an impact report. (Also seesection 3.3.viii).HCT Group’s impact report: HCT Group isan award-winning social enterprise andrapidly growing provider of public transportand related training services in the UK.Impetus Trust’s social impact report:Impetus Trust (see section 3.3.iii) publishesan impact report every year. The reporthighlights the key impacts made by thecharities they support in an easilyaccessible and transparent manner.NPC’s research report: ‘A journey togreater impact: Six charities that learned tomeasure better’ outlines the social impactmeasurement experience of six charitieswho are leaders in the social impact field.REDF’s social impact report: REDF haspioneered a model to employ individualswho are overcoming chronic poverty,homelessness, criminal history, substanceabuse or mental illness.Traidcraft’s annual review and socialaccounts: Traidcraft runs developmentprogrammes in some of the poorestcountries in the world and campaigns in theUK and internationally to bring about tradejustice.As the social enterprise and social investmentsectors mature a growing emphasis is beingplaced, by some, on social impact reporting.Within this, the need for a common language orstandardised framework has been raised byentrepreneurs, investors and intermediaries asan important issue that needs addressing. Aswe enter 2013, collaborative efforts are leadingto the development of a social impactmeasurement framework.To put this change in context, “ten years ago,critics dismissed impact measurement as toodifficult, misleading, or simply not important.Today, 75% of charities measure some or all oftheir work, and nearly three-quarters haveinvested more in measuring results over thelast five years.”123Some of the major developments in the spaceinclude:In January 2013, Big Society Capital (BSC)launched an impact reporting frameworkthat it developed with 14 social sectororganisations, including Bridges Ventures,Big Issue Invest, The SIB Group and123D. Pritchard, E. Ogain and T. Lumley (Oct 2012)‘Making an impact’, NPC
  • 83. 83We help social entrepreneursraise capitalNesta. The framework seeks to reach aconsensus within the social investmentsector on impact strategies, such as impactreporting and monitoring. It includesguidance on developing an impact plan forcharities and social enterprises seekinginvestment and an outcomes matrix thatstandardises definitions for key outcomeareas, themes and beneficiary groups.The launch of Inspiring Impact; a ten yearplan to encourage and develop impactreporting in charities and social enterprises.The programme was developed by acoalition of eight impact measurementorganisations with the support of UKgovernment. It will encourage the adoptionof common outcomes and sharedapproaches to measurement, and willdevelop appropriate impact measurementdata and tools.When setting up a social enterprise, the legalstructure adopted is important because itdetermines the governance structure of anenterprise, the types of investment it can attractand the arrangements relating to any profitsgenerated from the business.For detailed information on how to incorporateyour social enterprise and the different legalstructures refer to: ‘Keeping It Legal’ (sections 3 and 4) bySocial Enterprise UK (see section 4.4 i). ‘Which Legal Structure is Right for mySocial Enterprise? A guide to establishing asocial enterprise in England and Wales’ byTrustLaw (see section 4.2). Bates, Wells and Braithwaite (see section4.2).Below is a brief summary of the legal structuresand status conditions available for socialenterprises.Charitable StatusCharitable status sits on top of a legal form ofan organisation – it is not a legal form in itself.Over 60% of social enterprises have charitablestatus. It is only possible to gain this status ifthe purposes of your organisation areexclusively charitable and are for the publicbenefit. Charitable purposes include advancingeducation or religion and relieving financialhardship. Examples include the Sutton Trustand Barnardo’s. Over many years, a host ofother charitable purposes that benefit thecommunity have been recognised as charitableby the courts or the Charity Commission. Seethe Charity Commission’s guidance for a fulldescription of eligible purposes.Social enterprises as registeredcharitiesThere are organisational restrictions on a socialenterprise operating with charitable status. Anyprofits or surpluses made by the organisationmust be invested back into it and used tosupport its charitable purposes and must not bepaid out to members of the charity.
  • 84. 84We help social entrepreneursraise capitalLegal forms of charitiesThe most common legal structure for mostcharities is as a Company Limited byGuarantee (CLG)124, which is registered atCompanies House. A CLG may take loans,debt or quasi-equity (see section 3.2 fordefinitions). If a company is to issue equity toinvestors it must be registered as a companylimited by shares.Many social enterprises also choose theselegal forms because they are very flexible whenit comes to governance and investment. Toensure that a company is a social enterprise(rather than a generic enterprise) it will need toensure it has an ‘asset lock’ and/or its socialmission written into its Memorandum andArticles of Association which includes astatement of how it will reinvest its profits.Charities using this legal form currently have toregister both at the Charities Commission andat Companies House.Charitable IncorporatedOrganisation (CIO)The CIO is a new legal form for a charitycreated in response to requests from charitiesfor a new structure which could provide someof the benefits of being a company, but withoutsome of the burdens125. CIOs are structured asan incorporated form of charity (i.e. not acompany) and only have to be registered withthe Charity Commission. A CIO can enter intocontracts in its own right and its trustees willnormally have limited or no liability for its debts.It will still have the ‘asset lock’ that charitieshave and the restriction on profit distribution willremain.As of 10thDecember 2012, the CharityCommission is accepting applications toregister new organisations and existingcharities as CIOs. For further guidance pleasevisit the Charity Commission’s website.124The only example in the UK of a charity set up asa company limited by shares (and therefore able tooffer equity) is Charity Bank.125Charity Commission, ‘Start up a charity: Do Ineed to register?’Community Interest Company (CIC)CICs are also established as companies limitedeither by guarantee or by shares, but with theaddition of a ‘community benefit status’, whichidentifies that the company is not operatingpurely for private advantage. This is achievedby a ‘community interest test’ and the statuscreates an ‘asset lock’. This ensures that theCIC is established for community purposes andthe assets and profits are dedicated to thesepurposes. Registration of a company as a CIChas to be approved by the CIC Regulator whoalso has a continued monitoring andenforcement role. This is a parallel mutuallyexclusive status to the charitable statusdescribed above. A charity cannot be a CIC,nor can a CIC be a charity126.Industrial and Provident Societies(IPSs)IPSs are societies, not companies, and theycan take two forms: community benefitsocieties and co-operative societies. Thedifference between the two is in the stakeholdergroups that the society is set up to benefit. Aco-operative is set up to benefit its members,whereas a community benefit society is set upfor the advantage of the community morewidely, whether people are members or not.The co-operative is the more usual form of IPSand is democratically controlled by its membersin order to ensure their involvement in thedecisions of the business127. A co-operativecan raise and issue shares to the community.No individual is permitted to own more than£20,000 of capital in any society. A co-operative cannot gain charitable status and it isregulated by the FSA.Community Benefit Society(BenCom)A BenCom128, like a co-operative, can raiseand issue shares to the community. Unlike thecooperative, a BenCom can be established asa charity, providing it has exclusively charitable126Unless it converts (in the future) to a CIO asdescribed above127SE UK, ‘What are the legal structures for socialenterprises?’128BIS (Nov 2011) ‘A Guide to Legal Forms forBusiness’
  • 85. 85We help social entrepreneursraise capitalobjects that are for the public benefit, allowing itto raise capital through public grants andcharitable trusts. If approved, a BenCom isknown as an ‘exempt charity’ – currentlyreporting to the FSA, not the CharityCommission, although there are changesproposed to this.Limited Liability Partnership (LLP)A limited liability is used by some socialenterprises, but it is a for-profit structure andthe social enterprise would need to have itssocial mission written into its Articles ofAssociation. It retains the organisationalflexibility of a partnership and is taxed as apartnership, but members have the benefit oflimited liability. The LLP offers reducedpersonal responsibility for business debts.Unlike sole traders and partners of ordinarypartnerships, the LLP itself, not the individualmembers, is responsible for any debts that itruns up, unless individual members havepersonally guaranteed a loan to thebusiness129. These organisations can offerequity or take on debt. It is a flexible andpotentially suitable structure for social venturesif the social mission is securely embedded inthe constitution of the partnership.Social Enterprise Limited LiabilityPartnership (SELLP)This partnership is a suggested variation on theabove structure which would “be similar to thenew US hybrid legal structure known as a LowProfit Limited Liability Company, or L3C. Underthis model, companies would have to have asocial aim as their primary goal but they can berun as regular profitable businesses. TheSELLP would be used by charities andcommercial firms that want to work together toadvance a social purpose”130. It is still atproposal stage and is not yet in operation.129LLPs are more complicated to set up and runthan ordinary partnerships, as they have to meetmany of the same requirements as limitedcompanies. LLPs are designed to be used by profit-making businesses. Not-for-profit organisationsshould not use this business structure. (CompaniesHouse (Oct 2012) ‘Limited Liability PartnershipsIncorporation and Names’)130T. Mason (21 March 2011) ‘Stephen Lloyd mootsnew legal structure for hybrid social businesses’,Civil SocietyMutualsMutuals describe the ownership structure of acompany, not their legal structure. A mutualownership arrangement can apply across therange of legal structures described above,although some structures lend themselvesmore readily to this approach than others (e.g.partnerships and IPSs). For further informationsee the ‘BIS Guide to Mutual OwnershipModels’.Social entrepreneurs may find they can attractpotential financiers if tax incentives apply to aninvestment. However, this is commonlyoverlooked by social entrepreneurs, often froma misplaced assumption that there are no taxincentives relevant for investment in socialenterprises, and as a result, opportunities toencourage such investment may well be lost.It is true that specific tax regimes for socialenterprises do not exist. The closest to aspecific scheme is the Community InvestmentTax Relief (CITR), which was referred to earlierand is described in more detail below.However, the tax regimes that apply to SMEscan in principle also apply to social enterprises,but their relevance will depend on the legalstructure of the social enterprise and the type ofcapital it seeks.Most of the SME tax regimes listed below (EIS,VCT, SEIS) are relevant only for equityinvestments. Many social enterprises do notoffer share equity, as their legal structuresprohibit this – a CLG cannot offer equity, unlikea company limited by shares (see section 6).Increasingly, CLGs seek to offer ‘equity-like’risk capital investment into their socialenterprises but the existing tax regime has a‘blind spot’ when it comes to recognising suchfinancing.The tax regimes listed below are operative asof February 2013.
  • 86. 86We help social entrepreneursraise capitalCommunity Investment Tax Relief(CITR)Currently, CITR provides relief on income tax toindividuals and corporations investing inCommunity Development Finance Institutions(CDFIs) (see section 3.3.v for a definition) withdebt or equity. The recipient CDFI must satisfycertain criteria regarding the form and timing ofonward investment, which must be made intoenterprises in “disadvantaged communities”.The CITR scheme encourages such investmentcommunities by giving tax relief of 25% overfive years to investors who invest in accreditedCDFIs. The relief is available to individuals andcompanies who invest in accredited CDFIsinvesting by debt or equity. For furtherinformation on the CITR relief and guidance onthe scheme see the HMRC website.Enterprise Investment Scheme (EIS)The EIS is designed to help smaller higher-risktrading companies to raise finance by offering arange of tax reliefs to investors who purchasenew shares in those companies. EIS isavailable to individuals only, for a minimuminvestment of £500 worth of shares in any onecompany in any one tax year. The shares mustgenerally be held for three years from the datethe shares were issued. Any gain on disposal isfree from Capital Gains Tax (CGT).Venture Capital Trust Scheme (VCT)The VCT scheme is designed for themainstream SME, but in principle is applicableto social enterprises that offer equity. It allowsinvestors to set 30% of the cost of shares in aVCT against individual income tax liability, aswell as relieving the income tax burden ondividend income. Apart from in the area ofrenewable energy, VCT investment into socialenterprises has been non-existent.Seed Enterprise Investment Scheme(SEIS)The SEIS is a new scheme which offers reliefto investments made on or after April 6th2012.It is similar to VCT but is focused on smaller,early stage companies carrying on, orpreparing to carry on, a new business in aqualifying trade. The scheme will makeavailable tax relief to investors at a rate of up to50% who subscribe for shares and have astake of less than 30% in the company. Again,this relief could be offered in principle to socialenterprise start-ups offering share capital toindividual investors. For further information andguidance on the scheme see HMRC website.Gift AidAlthough Gift Aid does not provide tax relief onany investments, merely on donations to acharity, it is a powerful relief that charities usewhen trading. A common structure in the UK isfor a charity to establish a trading arm (whichcould be in a variety of legal forms, asdiscussed above). The income generated fromthis trade is then ‘gift-aided’ back to the ‘topco’(top company). In this way, it is exempt frompaying tax on its income generated throughtrade.Future possibilities – pensions andsavings plan social investmentsIn the future, we hope that there will beopportunities to offer social investments inpension schemes and ISAs. The principles ofthese are outlined below, more by way ofinformation than because of any imminentopportunity they offer.Self Invested Personal PensionScheme (SIPPS)SIPPS can be used to gain tax relief on a widerange of assets including bank deposits, bonds,shares, pooled funds such as unit andinvestment trusts, Open-Ended InvestmentCompanies (OEICs), Exchange Traded Funds(ETFs), commercial property, hedge funds,foreign currency and warrants. An investmentunder SIPPS has to be administered by anauthorised provider to gain tax relief fromHMRC but the individual holding the SIPPSdecides what it buys and sells and when. Inprinciple, a social investment could be createdwhich could qualify for SIPPS tax relief, if anauthorised provider felt assured of its capacityto generate necessary levels of return.Individual Savings Accounts (ISAs)ISAs can be held in stocks, shares or cash. Inprinciple, an ISA could be a social investment(although, to date, the social investment marketis not well enough developed amongst thefinancial intermediaries who manage ISAs). Anindividual holding an ISA pays no tax on any of
  • 87. 87We help social entrepreneursraise capitalthe income received from an ISA savings andinvestments. This includes dividends, interestand bonuses.The summary table on the following pageshows the relationship between legal forms,types of capital that can be provided andwhether there is a relevant tax relief schemethat an investor can benefit from.
  • 88. 88Legal form and status * Access to capital Relevant tax relief schemesDEBT EQUITY GIFT AID CITR EIS, VCT, SIPPS, ISACLG Charity ✔ ✗ ✔ ✔ ✗CIC/CLG non charity ✔ ✗ ✗ ✔ ✗CLS charity ✔ ✔** ✔ ✔ ✗CIC/CLS non charity ✔ ✔ ✗ ✔ ✔IPS charity ✔ ✔ Corporation taxexemption✔ ✔ (EIS)IPS non charity ✔ ✔ ✗ ✔ ✔ (EIS)* LLPs tax exemptions are determined by tax status of each partner** very rare, Charity Bank is one example*** CITR is subject to sector and geographical restrictions
  • 89. 89We help social entrepreneursraise capitalProvided below is an overview of directorieswhich may be of interest to social enterprises.Big Society Capital (see section 3.3.ii) hasestablished a comprehensive directory oforganisations providing finance and supportto the social sector. You can filter theorganisations by the type of supportprovided, size and type of investment,country and region.BuySE.co.uk is a business directory to helpfind products and services supplied bysocial enterprises across the UK.ClearlySo provides a directory listing over3,500 social enterprises and businessesfrom all over the world.CIC regulator lists all registered CICs.Firstport (see section 4.1) provides adirectory of organisations and socialenterprises in Scotland by area, sector andtype.Guardian Social Enterprise Network (seesection 7.3).Just Buy is a directory of products andservices that can be supplied by SocialFirms (see section 4.4) to anywhere in theUK.Run Native is an online social enterprisemarketplace.Social Enterprise UK (see section 4.4)provides a directory of organisations thatoffer advice and support to socialenterprises and third sector organisations.Social Enterprise Mark “awards socialenterprises with a Mark that assurescustomers that they are driven by social orenvironmental objectives and are trading tobenefit the people and planet”. Thedirectory identifies Mark holders located inregions on an interactive map.Social Finance Ltd (see section 4.2)created two directories to “search forfinance providers and advisory servicesaccording to the type and/or scale offinance, and type of services, they provide”.Social Traders CIC (see section 4.2)provides a directory of UK social enterprisenetworks and several social enterprisemaps “showing locations of offices, sites,members and networks”.SROI Network (see section 4.4) provides adirectory of information on members listedby category.Startbright provides a Scottish businessdirectory.List below are online tools which may be ofparticular interest to social entrepreneurs.Dictionary of Indicators, provided byInvesting For Good (see section 3.3.iii), is aresource primarily for social-purposeorganisations looking to develop their ownimpact measurement capabilities.Funding Central is “a website funded by theCabinet Office which offers free services forcharities, voluntary organisations and socialenterprises. The website is home tonumerous tools and resources to assistorganisations with fundraising, developinginfrastructure and tendering and negotiatingcontracts”.j4bCommunity provides information on over3,000 grants dedicated to the voluntary andcommunity sector.KnowHow NonProfit is “the place for not-for-profit people to learn and share whatthey have learnt with others”.
  • 90. 90We help social entrepreneursraise capitalProving and Improving is a quality andimpact toolkit for charities, voluntaryorganisations and social enterprise writtenby nef (see section 4.2).Social Enterprise UK Guides andPublications Library provides accessguides, business manuals, knowledgecards and top tips from experts in socialenterprise.Social Impact Scotland is a web resourcededicated to supporting third sector andpublic sector organisations, funders andinvestors. The site provides information ona “range of philosophies, methodologies,tools and approaches to understanding andmeasuring social impact, as well asinformation on outcomes, approaches tocommissioning, designing and improvingservices and projects within communities”.Startbright is a website developed byFirstport that contains practical informationand tools for start-up social enterprises inScotland. (Also see section 4.1).WikiVOIS Database (Value, Outcomes andIndicators for Stakeholders) is a resourcecreated by the SROI Network (see section5.2) to “develop a database of values,outcomes and indicators for stakeholders,and to encourage debate and dialogueabout use of these”.Below is an overview of key sources for up todate news and developments within the sector.Alliance Magazine provides “news andanalysis of whats happening in thephilanthropy and social investment sectorsacross the world. It also acts as a forum forexchange of ideas and experiences amongpractitioners.”Beyond Profit is “a social enterprisemagazine, which presents the stories,people and ideas behind these innovatingsocial ventures by bringing first-handinsights and expert commentary”.ClearlySo Social Business Blog keepsreaders up to date with all the latestdevelopments in the world of socialbusiness and enterprise.Guardian Social Enterprise Network is an“online space where professionals workingin or with social enterprise can talk to oneother, get advice and insight from peersand industry experts and grapple with thechallenges that face the whole sector”. It isopen to anyone who is “a socialentrepreneur, social enterprise leader, localauthority, service commissioner, socialinvestor or from private business”.Pioneers Post is “a web magazine andnetworking platform for innovators,entrepreneurs, investors and advisors whoare building a better world through goodbusiness”.Startacus is a “platform with a mission tohelp self-starters, innovators, start-ups andcreatives to connect, collaborate and bringideas to life.” It also provides a businesstoolkit for start-ups.Third Sector offers coverage of a wholerange of voluntary sector concerns throughthe printed magazine, the website and arange of conferences and events.i. Top Practical TipsHere are our top ten tips for effectivelymanaging your social media, the use of whichis becoming increasingly important for the cost-conscious social enterprise sector.1. Use Hootsuite (and set it up properly)Whilst Twitter have made some aestheticimprovements to their own website,twitter.com is certainly not the most efficientuser interface (UI) for accessing the TwitterAPI. When a Tweet is sent, it is globallyaccessible by any application that wants toretrieve the data. This means that there area whole host of different Twitter interfaceclients that can offer functionality beyondthe native twitter.com application.
  • 91. 91We help social entrepreneursraise capitalOne of the best is Hootsuite and we wouldrecommend setting up your Twitter accounton this free service. If you would like toexperiment with an alternative, then look atTwitter’s own Tweetdeck for a similar UI.However one advantage that Hootsuite hasover Tweetdeck is that it runs in yourbrowser rather than as a local client,meaning you can login and access yourcustomised set up from anywhere with anInternet connection without the need toinstall anything.After you have registered and authorisedyour Twitter account through Hootsuite, theUI is fairly intuitive to customise and offersa good starting point of default columns towork from. You’ll quickly realise theadvantages to having a multi-column basedlayout over Twitter’s single page stream.From one manageable dashboard, you canquickly see all of your basic feeds thatyou’ll want to monitor – your followers’feed, any mentions of your username, yourdirect message inbox, etc.Having familiarised yourself with Hootsuite,you can begin tailoring your feeds toinclude things that you perhaps may nothave considered. Let’s add the hashtag#socent (‘social enterprise’) as a column inyour interface. Using Hootsuite’s searchfeature, look up the term #socent.Hootsuite will deliver you the most recentpublic Tweets that have been sent whichinclude that hashtag131. In the bottom rightof this dialogue box, you’ll see a button to‘Save as Stream’. Clicking this will add thispublic API search query (‘#socent’) as acolumn in your Hootsuite interface. Youmay have to scroll right to find this column,but you can drag columns to rearrangethem if you want to prioritise them.Hopefully this quick example has shownyou the potential that Hootsuite can offeryou. It is a quick method to monitoring notonly your Twitter but Facebookconnections.131Alternatively if you see a Tweet that has quoted ahashtag you are interested in, you can quickly pullup other Tweets which include that string by clickingdirectly on the tag.2. Use a blog/news/term aggregator(including Twitter, Feedly, GoogleAlerts…)Earlier we mentioned using Twitter to stayin touch with the conversations going on inand around the sector. However there areother services you can use to specificallymonitor blog content. Two to berecommended are Feedly and GoogleAlerts. Both are very easy to customise andcan help you find new blogs that you werenot previously aware of.3. Create a social media strategy and goalsPhysically write down what you want toachieve with social media and – to a certainextent – how you are going to achieve it.Many social media guides will stress theimportance of writing a vast strategy for allyour online channels. This could beappropriate for you, but represents theextreme end of the scale. Simplycommitting yourself to sending one Tweetan hour could be enough to keep yourselforganised.4. Track what works (link clicks, whatcaused that recent spike in newfollowers?)Not only do you need to plan what you’regoing to do, but you need some level ofmonitoring if you’re on the right track or not.How many new Twitter followers do youideally want to reach and by when? Nowyou can easily calculate how many newfollowers you need a week, and balanceyour efforts accordingly. Some servicesthat offer link-shortening (includingHootsuite) also allow you to monitor yourclick-throughs. Perhaps your goal is to useTwitter to boost traffic to your site. If so, useHootsuite and Google Analytics to see howmany of your visitors are coming throughyour Tweets.5. Schedule your contentSmart phones make it increasingly easy toTweet on the move but manually fulfillingyour strategy (i.e. one tweet an hour) isgoing to quickly become laborious and youwill begin to fall behind. Dedicate one ortwo hours – perhaps on a Sunday eveningbefore the week gets going – to composesome Tweets and schedule them for
  • 92. 92We help social entrepreneursraise capitaldelivery. Again, services like Hootsuite andTweetdeck offer scheduling capabilities.However the beauty of Twitter is that it isconstantly on the pulse of real timeupdates, so don’t neglect yourresponsibility to ‘Tweet from the field’ as itwere.6. Don’t just talk about yourself (become acommentator about your industry)Social media offers you an outlet forsharing those inspiring articles you’ve read.Using the suggested news aggregators(Feedly and Google Alerts) you’ll have areadily available list of articles that may beof interest to your followers. With discretion(don’t share every post you read)circulating other people’s material can offeradded value to your own output.7. Converse informally (some of the time)8. Always respond (always, good or bad)9. Don’t obsess or waste time (everybodyis in ‘social media panic’ mode at themoment)Whilst it’s important to treat socialnetworking seriously, there’s no silver bulletwhen it comes to social media practices.Do not overly obsess about Twitter orFacebook as this will unduly distract youfrom your core business execution. Thesechannels should simply act as an efficientand cost effective way to support yourbusiness’s marketing efforts. Experiment,organise and most importantly have funwith social media; but do not lose sight ofyour core business activities.10. You do not have to be on every singlenetwork (although you may want to landgrab your name) but do not spread yourselftoo thinly.Different social networks responddifferently to various types of content. Forinstance, it may be inappropriate to focusyour efforts through Facebook due to thenature in which users use this network.B2B services will particularly have a toughtime on Facebook and people areincreasingly ring-fencing Facebook for theirpersonal connections and looking to Twitterand LinkedIn for engaging with brands andcompanies. That said, you may wish toregister your company’s details onnumerous other networks to ensure thatpeople cannot use your handle.Lastly, never forget that blogging isprobably your greatest social media tool!Twitter is primarily a distribution tool ratherthan a content generator; there’s only somuch you can say in 140 characters. Usethese services to broadcast about your richcontent. Try to blog regularly and split yourcontent between thought pieces and news.If you don’t have a blog, you can set one upwithin five minutes on a huge range ofproviders. Some we would recommend areTumblr (set up as a social network itself),Wordpress and Blogger.ii. Social Enterprise on TwitterThere are a variety of hashtags that you shouldkeep an eye on and a few key commentators inthe sector who you should consider following.Social enterprise hashtags:#cleantech#impinv#microfinance#nonprofit#socap#socent#socinn#socinv#sriActive social enterprise twitterers:@AlexaClay @aogdennewton @AshokaUK@BallsForAfrica @BaxiPartnership @benmetz@bg_ventures @BigIssue @BigLotteryFund@BigSocietyCap @BigSocietyLive@BigVentureChall @blackmatty @BlendedValue@buzzbnk @CAFVenturesome @CANenterprise@changemakers @ChestofDrawers @ClearlySo@CommonCapitaI @Crowdcube @Dai_HCT@dallant @danlehner @DeloittePioneer@echoinggreen @EdCearns @emergelab@EmployeeOwned @escthecity @EuclidNetwork@_EVPA_ @faiselr @FastCoExist@Fusion21CEO @GuardianSocEnt @hubislington@hubkingscross @hubwestminster @Inspire2E@investmentsuk @JeremyANicholls@j0nathanjenkins @JustGiving @KeyFund@kiwanja @LiamABlack @MikeMompi@minforcivsoc @Montero @mrsimoncohen
  • 93. 93We help social entrepreneursraise capital@NACUE @NCVO @nef @nesta_uk@NextBillion @nickhurdmp @nicktemple1@nominettrust @NPCthinks @OnPurposeUK@patrickjbutler @pch083 @peteholbrook@PeterWanless @PioneersPost @PrincesTrust@prospect_us @PYMWYMIC @recyclinglives@Renaisi @rodneyschwartz @SallySocialEnt@SchSocEnt @schwabfound @SE100@SE_Alley @semagreporter @SESCICUK@SkollCentre @SkollWorldForum@SocEntAcademy @SocEntLdn @socfinuk@socialfirmsuk @socinvestscot @SocialValueLab@Spacehive @steve_coles @thebigsociety@theGIIN @TheSocBiz @ThirdSector@thirdsectordave @unitytrustbank @UnLtd@volanschar @yearhere @YFAccelerator@zanne27.5. Key Events in the SectorBelow is an events calendar. It is not exhaustive but provides some highlighted events and when theyhave traditionally taken place in the year.When Event Name Event Type Where OrganizerFeb Harvard SocialEnterprise ConferenceConference Boston Harvard UniversityMar SOCAP Soul Conference Boston SOCAPGlobal EntrepreneurshipCongressCongress International GlobalEntrepreneurshipWeek and TheKauffmanFoundationApr SKOLL World Forum Conference Oxford Skoll FoundationOxford Jam Parallel to SKOLL WorldForum (as a fringeconference)OxfordResponsible BusinessWeekConference London Business in theCommunityEBAN Congress Congress Of EuropeanBusiness Angel NetworkEurope EBANMay SOCAP Europe 3 days InternationalImpact InvestingConferenceEurope SOCAPSocial EnterpriseSummitCongress USA SE AllianceJune Evolve Conference London NCVO (NationalCouncil forVoluntaryOrganisations)International Conferenceon Entrepreneurship,Conference Europe
  • 94. 94We help social entrepreneursraise capitalFranchising is the practice of replicatingsuccessful business models in othergeographical localities. The franchisor (theowner of the original business) licenses the useof its business operations and systems (thefranchise) to a franchisee in exchange for alicence fee, and royalties on either therevenues or profits of the franchisee’soperation. In this way the franchisee buys insimple terms ‘a business in a box’.A great deal of information on franchising canbe found via the British Franchise Association.For the social entrepreneur, socialfranchising132can be an efficient way of scalingyour social and/or environmental impact with aproven business model that you havedeveloped. A wealth of advice and support isdeveloping for social organisations wishing toreplicate their activities. Below is a list of someof the organisations operating in this field.CAN support social enterprises that arewishing to set up franchise operations orreplicate successful programmes.European Social Franchising Network “wasborn out of links made between socialfranchises established by the EU’s Equal132See the European Social Franchising Networkprogramme. It was established becausemembers felt there was a need to promotethe concept of social franchising [It]facilitates the development of best practicein social franchising and in our membershipand creates a positive environment for thedevelopment of social franchising.”Firstport (see section 4.1) “plays an activerole in replicating and scaling successfulsocial enterprise models across Scotlandand beyond”.FranchisingWorks is “an innovative socialenterprise that tackles unemployment byhelping create new businesses and jobsthrough franchising. It providesindependent advice and practical support topeople interested in exploring franchisingas a way into self-employment.”International Centre for Social Franchisingtackles the issue of scale; its mission is tohelp the most successful social impactprojects replicate. It assists organisationslooking to replicate their social impact.They have a network of members, trustedsocial and commercial sector consultants,and pro-bono experts, carefully selected ona project-by-project basis. Some of theirclients include FoodCycle, Big SocietyCapital and GlaxoSmithKline.Innovation and RegionalDevelopment (ICEIRD)Sep SOCAP USA Conference SanFranciscoSOCAPInternational SocialInnovation ResearchConference (ISIRC)Conference RegionalNov TBLI CONFERENCE™EUROPEConference Europe TBLIGlobal EntrepreneurshipWeekCampaign UK KauffmanFoundationGood Deals Conference London Matter & Co
  • 95. 95We help social entrepreneursraise capitalThe School for Social Entrepreneurs (seesection 4.1) runs courses on socialfranchising. Further information onupcoming courses can be found online.Social Enterprise UK (see section 4.4) runsfrequent business support courses to socialenterprises around the United Kingdom.For details on their social franchisingprogramme, click on the link above. SocialEnterprise UK has also written acomprehensive guide to social franchising,‘The Social Franchising Manual’ withreference to numerous case studies ofsocial enterprises employing thismethodology. Further research andresources on the topic is also available intheir website.
  • 96. 96We help social entrepreneursraise capital119 Fund.....................................................................27333needs ........................................................................303SC................................................................................76AA Team Foundation.......................................................38Abundance..............................................................30, 47Accelerator .............................................................60, 75Acumen Fund..........................................................25, 81PULSE........................................................................81Addidi Angels ................................................................15Addidi Pioneers.............................................................15Advantage Business Agency..........................................72Advantage Business Angels...........................................15Allia.........................................................................18, 70Alliance Magazine.........................................................90arc.................................................................................69Arthur Guinness Fund...................................................39Ashden.............................................................. 49, 50, 55Ashoka .............................................................. 39, 55, 59Ashoka Changemakers .............................................55ATQ Consultants LLP.....................................................73BBabyloan.......................................................................30Baker Brown Associates................................................69Bank to the Future........................................................31Banks Cannell LLP .........................................................73Barchester Green Investment.......................................71Barclays Community Finance Fund...............................36Barrow Cadbury Trust...................................................39Bates Wells & Braithwaite London LLP...................71, 73Baxi Partnership............................................................71Beer & Partners ............................................................15Beer & Young................................................................15Ben & Jerry’s.................................................................59Join Our Core............................................................59Berti Green Accelerator................................................75Bethnal Green Ventures ...............................................75Better Place ..................................................................31Beyond Profit................................................................90Bidright UK....................................................................73BIG Assist ......................................................................63BIG Fund .......................................................................64Social Incubator Fund...............................................64Big Issue Invest .......................................................18, 82BIG Local .................................................................58, 63Big Society Capital..................8, 14, 18, 36, 54, 82, 89, 94Social Outcomes Finance Fund.................................18Big Society Network......................................................76Big Venture Challenge........................... 54, 58, 59, 63, 66Bill & Melinda Gates Foundation ..................................39Bridge Consulting..........................................................73Bridges Ventures................................... 14, 19, 80, 81, 82Social Enterpreneurs FundSustainable Growth FundSustainable Property Fund...............................19Bulldog Trust.................................................................40Bulldon Trust and Golden Bottle Funding Initiative..40BuySE.co.uk...................................................................89Buzzbnk...................................................................31, 43CCAF Venturesome .........................................................25Calvert Foundation .................................................40, 41Cambridge Angels .........................................................15CAN ................................................. 26, 73, 74, 79, 81, 94CAN Breakthrough ........................................................26Central England Business Angels...................................15Charity Bank................................................ 34, 45, 84, 88Charlotte Street Capital ................................................15CIC Association..............................................................76CIC regulator ...........................................................36, 89City Bridge Trust............................................................41City of London Corporation............................. 1, 2, 69, 79City Action ................................................................69Claridge Capital.............................................................73Clearly Social Angels .........................................15, 16, 73ClearlySo ............1, 3, 6, 16, 17, 38, 46, 53, 64, 69, 73, 90Cogent Ventures ...........................................................73Community Investment Tax Relief (CITR) ...............85, 86Connect London............................................................15Co-operative Group Ltd ................................................36Co-operative Community Shares FundCo-operative Bank Community BankingCo-operative and Community Finance ............36Co-operatives UK ..........................................................76Coutts Charitable Trust & Foundation ..........................42CrowdCube ...................................................................31CrowdMission ...............................................................31DDeloitte Social Innovation Pioneers..................55, 73, 75Deutsche Bank ..............................................................20Impact Investment Fund...........................................20DWP European Social Fund Programme.......................68DWP Innovation Programme ........................................68DWP Work Programme.................................................68
  • 97. 97We help social entrepreneursraise capitalEEarly Intervention Foundation......................................64Early Years Early Action Fund........................................27Eastside...................................................................71, 73Echoing Green...............................................................56Eco-connect ..................................................................77Ecology Building Society ...............................................35Education Endowment Foundation ........................42, 43Education Endowment Fund.........................................65Eleos Foundation ..........................................................43Emerge Venture Lab ...............................................60, 75Energy Entrepreneurs Fund..........................................65Enterprise Investment Scheme (EIS).............................86Entrust ..........................................................................15Envestors ......................................................................15Equity Development .....................................................73Esmée Fairbairn Foundation.........................................43Food Strand ..............................................................43Ethex................................................................. 32, 44, 45Ethical Property Company .................... 43, 45, 52, 79, 82Euclid Network..............................................................78European Social Franchising Network ..........................94European Venture Philanthropy Association................78Exemplas.................................................................69, 72FFair Finance...................................................................53Finance Matters (NI).....................................................70Finance South East..................................................17, 20Community Generation FundSouth East Sustainability Loan Fund ....................20Firstport ............................................................ 70, 89, 94Foster School of Business .............................................60Global Social Entrepreneurship Competition ...........60FranchisingWorks ...................................................53, 94FRC Group.....................................................................82Friends Provident Foundation ......................................44Fund Invest and Grow (FIG) ..........................................75Funding Central.............................................................89Funding Circle ...............................................................32Future Business.......................................................70, 71Future Participle ...........................................................53GGecko Programmes Ltd.................................................73Give What You’re Good At............................................70GLE Group...............................................................70, 72Global Accelerator Network ...................................75, 78Global Impact Investing Rating System (GIIRS).............81Global Social Venture Competition...............................61Go Beyond ....................................................................16Go2Play...................................................................27, 28Golden Bottle Trust.................................................40, 44Goldman Sachs .............................................................6110,000 Small Businesses Programme.......................61Green Investment Bank Plc...........................................65Green Monday ..............................................................77Growth Accelerator.......................................................75Growth Investment Network West Midlands ...............15Guardian Social Enterprise Network.................77, 89, 90HHalo...............................................................................15HCT Group.....................................................................82Head & Heart Economics ..............................................74Hogan Lovells LLP..........................................................73Hootsuite ..........................................................90, 91, 92IImpact Lab ....................................................................70Impact Reporting and Investment Standards (IRIS) ......81Impetus – the Private Equity Foundation .....................26Impetus TrustThe Private Equity Foundation.............................26Impetus Trust.............................................. 26, 42, 73, 82Indiegogo ......................................................................32Innovation Warehouse .................................................79Inspire2Aspire...............................................................73Inspiring Scotland..........................................................27Intentionality ................................................................74International Centre for Social Franchising (ICSF).........94Invent Network.............................................................15Invest Northern Ireland.................................................77Investing for Good ...................................... 53, 73, 82, 89Investors’ Circle.............................................................16i-Probono ......................................................................77Jj4bCommunity ..............................................................89Joseph Rowntree Charitable Trust..........................44, 45Just Buy.........................................................................89JustGiving................................................................32, 70KKeiretsu.........................................................................15Kent Big Society Fund..............................................45, 68Key Fund .......................................................................21Keystone .......................................................................74Kickstarter.....................................................................32Kiva ...........................................................................9, 32KnowHow NonProfit ...............................................77, 89LLankelly Chase...............................................................45LeapFrog .......................................................................56Global Fellows Programme.......................................56LGT Venture Philanthropy.............................................56iCats Fellowship........................................................56LINC Scotland................................................................15Link Up ..........................................................................28
  • 98. 98We help social entrepreneursraise capitalLloyds Bank...................................................................37Lloyds Banking Group & School for Social Entrepreneurs..................................................................................62Social Entrepreneurs Programmes...........................62Local Partnerships...................................................67, 74Locality.............................................................. 66, 73, 77London Business Angels................................................15MMake a Wave - Pre-Incubator.......................................75Make it Happen Consultancy..................................74, 81MarketInvoice...............................................................32Meanwhile Space..........................................................79Minerva Business Angel Network.................................15Ministry of Justice Re-offender Programme.................68Mowgli Foundation.......................................................70Mutual Support Programme.........................................65NNational Council for Voluntary Youth Services .............77Catalyst Consortium .................................................77National Council of Voluntary Organisations (NCVO)...77National Endowment for Science and the Arts (Nesta.46National Endowment for Science Technology and theArtsImpact Investment Fund ..........................................46nef consulting ................................................... 72, 74, 81Net Impact ....................................................................79New Economics Foundation (nef).................................72nef consulting...........................................................72New Philanthropy Capital (NPC) ...................................72NEXII .......................................................................70, 72Nexters..........................................................................75Nominet Trust.........................................................47, 62Northeast Business Angels............................................15Northwest Business Angels...........................................15Numbers4Good ............................................................72OOgunte....................................................................70, 75On Purpose ...................................................................70Oxford Early Investment...............................................15Oxford Investment Opportunity Network ....................15PPanahpur ................................................................17, 47Partner-up.....................................................................72Paul Hamlyn Foundation...............................................48Pioneers Post ................................................................90PleaseFund.Us...............................................................33Plunkett Foundation .....................................................48The Community Assets Fund....................................48Plymouth Social Enterprise Network ............................77Pro Bono Economics .....................................................74Profit is Good..........................................................71, 76Social Value...............................................................71Proving and Improving............................................80, 90Pulse Regeneration.......................................................74PURE the Clean Planet Trust .........................................48PwC.........................................................................74, 79PwC Fire Station........................................................79Pymwymic...............................................................17, 53QQi3 Accelerator .............................................................15RREDF..............................................................................82Resonance............................................. 17, 21, 22, 54, 74Affordable Homes Rental FundCommunity Shares Underwriting FundReal Lettings Property FundSocial Impact Co-Investment Fund..............21Rockefeller Foundation...........................................49, 54Royal Bank of Scotland Group.......................................37MicroFinance FundInspiring Women EnterpriseInspiring Youth Enterprise ...............................37Royal Society for the encouragement of Arts,Manufactures and Commerce (RSA) ........................77RSA Catalyst ..................................................................76Run Native.....................................................................89SSainsbury Family Charitable Trusts ...............................49Ashden TrustJJ Charitable TrustMark Leonard TrustThe Alan Babette Sainsbury Charitable FundGatsby Charitable FoundationHeadley Trust......................................49Santander......................................................................57Social Enterprise Development Awards (SEDA)........57Sarah Dodds Enterprise Accelerator .............................76Schwab Foundation ......................................................57Schwab Foundation for Social Entrepreneurship .....57Scottish Enterprise........................................................66Seed Enterprise Investment Scheme (SEIS) ..................86Seedrs .....................................................................15, 33Self Invested Personal Pension Scheme (SIPPS)............86Shared Impact...............................................................28Shared Interest .............................................................35Silicon Beach Business Angels.......................................15Skoll Foundation .....................................................57, 93Social Business Trust.....................................................29Social Capital Markets (SOCAP).....................................79Social Enterprise Europe.........................................70, 72Social Enterprise Loan Fund..........................................23Social Enterprise London ..............................................70Social Enterprise Mark ..................................................89Social Enterprise Solutions CIC......................................71
  • 99. 99We help social entrepreneursraise capitalSocial Enterprise UK.....................8, 10, 74, 77, 89, 90, 95Social Enterprise Works................................................77Social Entrepreneurs Ireland............................. 39, 57, 77Social Finance ..................................14, 23, 54, 72, 74, 89Social Firms Europe.......................................................78Social Firms UK..............................................................78Social Impact Consulting...............................................74Social Impact Scotland..................................................90Social Investment Scotland............................... 23, 24, 43Social Stock Exchange................................. 44, 49, 54, 78Social Traders CIC.............................................. 71, 72, 89Social Value............................................. 8, 10, 72, 74, 81Spacehive......................................................................33Sponsume .....................................................................33SROI Network.............................................. 78, 81, 89, 90Start Some Good...........................................................33Startacus.......................................................................90Startbright...............................................................89, 90Stepping Out..................................................... 46, 54, 74Striding Out...................................................................71SWAIN (South West Angel and Investor Network) .......15TTech Hub.......................................................................79Technology Strategy Board.....................................58, 68Tellus Mater Foundation...............................................51Thames Valley Investment Network.............................15The Accelerator.............................................................76The Big Lottery Fund.....................................................63BIG AssistBIG LocalBIG Next StepsBIG Fund......................................................63The Dulverton Trust......................................................42The Hub ........................................................................79The Melting Pot ......................................................56, 79Social Innovation Incubator Award ..........................56The School for Social Entrepreneurs (SSE)....................71The Shaftesbury Partnership ..................................46, 54The social e-valuator.....................................................81The Social Incubator Fund ............................................75The Social Investment Business....................................66The Social Investment Consultancy (TSIC) ....................74The Social Investment Fund..........................................67The Trusthouse Charitable Foundation ........................52The University of Northampton....................................72Inspire2Enterprise ....................................................72The Wise Group ............................................................71Third Sector Research Centre .......................................78Thomson Reuters TrustLaw ..........................................72Toniic.............................................................................17Traidcraft ......................................................................82Triodos..............................................................23, 35, 74Truestone Global Impact Fund......................................24Trust for London .....................................................51, 52Tudor Trust ...................................................................52Tweetdeck...............................................................91, 92UUK Business Angels Association ....................................15Ulule..............................................................................33Unity Trust Bank............................................................36UnLtd .............................................. 39, 43, 58, 59, 63, 68Unreasonable Institute .................................................58VVenture Partnership Foundation ..................................29WWayra............................................................................76WiseLearning ................................................................71WK Capital LLP ..............................................................15Wren Capital .................................................................15XXenos ............................................................................15YYorkshire Association of Business Angels .....................15Young Foundation Ventures .........................................76The Accelerator ........................................................76ZZopa ..........................................................................9, 34
  • 100. 100We help social entrepreneursraise capital