Social investment is a type of financial investment in the third sector that considers both social impact and financial return. Social investments can take the form of loans, patient loan finance, social impact bonds, or bridging finance. The Wales Council for Voluntary Action (WCVA) has provided social investments such as a wellbeing bond to fund reduced antidepressant prescriptions and loans to help organizations purchase new locations or start social enterprises.
2. What is Social Investment -
Increasingly the term ‘social investment’ is being used to
describe varying types of financial investment into the third
sector.
Social Investment differentiates itself from normal commercial
funding because the social impact of the investment is
considered alongside the financial return.
WCVA also ring-fences any returns to only use in further
social investments, create a sustainable fund.
3. Types of Social Investment -
Loans
Patient Loan Finance
Wales Wellbeing Bond / Social Impact Bonds
Bridging Finance or Risk Capital
Charitable Bonds
4. Examples of WCVA Investments-
Valleys Steps – Wellbeing Bond investment. Repayments to
come from Health Board sharing the savings in reduce
prescriptions of anti-depressants.
Antur Stiniog – Loan investment. Enabled organisation to buy a
town centre location to improve visibility and trading income.
Community Cards – Patient Loan investment. Enabled the start
up of a pre-paid card social enterprise offering a more suitable
service for Welsh Credit Unions and their members.
