This document discusses Charity Bank, a not-for-profit bank that lends exclusively to charities, voluntary organizations, and social enterprises. It outlines key factors Charity Bank considers when evaluating proposals for social lending, including viability, sustainability, and social impact of projects. It describes how Charity Bank assesses proposals based on the organization's history, governance, finances, project details, repayment plan, security, and expected social impact. The document also notes trends in the growing social investment market, including more sources of funding and support for social organizations, but competition remains tough for early-stage startups.

1. Accelerate for Social Entrepreneurs
25th March 2014
Paul Harrison

2. a different bank for people who want a different world
Charity Bank
A Different Bank
• Charity Bank;
– Established 2002
– A not for profit organisation;
– National coverage
– Work exclusively with Charities, Voluntary
Organisations and Social Enterprises
– Savings
– Lending up to £1m, secured up to 25 years

3. a different bank for people who want a different world
Key points from a social lender’s
perspective
Viability
• break even or make surplus in reasonably short term
Sustainability
• Longevity – at least over the period of the loan
Social Impact
• Benefit created

4. a different bank for people who want a different world
Key factors viability/sustainability
There needs to be a plan
• assumptions should be reasonable, sensible and achievable
• investors need to understand them and buy in to them
Demand for product or service
• market research
Organisation properly resourced and contain appropriate skills
• the people must be able to deliver the plan
Ability to sell and market
Understanding and control of finances
• professional support

5. a different bank for people who want a different world
Key Factors Social Impact
What is the benefit
Who benefits
Scale of impact
Geography of Impact
Not for profit?

6. a different bank for people who want a different world
How do we assess proposal
History of the organisation – background information
Governance/management/the people
Historic Financial situation – profits/losses?
The project – does it make sense/do we understand it?
Repayment – will we get our money back?
Security – if it goes wrong is there a safety net?
Level of social impact

7. a different bank for people who want a different world
How does it work?
Business plan
Financial projections
Meeting with the management and trustees
Write report
Decision by credit committee

8. a different bank for people who want a different world
Trends in Social Investment
More of it
• Social Impact Bonds
• Big Society Capital
• Social Investment Business
More support
• Investment Contract Readiness Fund
• Big Potential
• Social Incubator North
More competitive
• Charity Bank/Triodos/Unity Trust
• Entry of funding advisers
More competitive
• Still tough for start ups early stage
• Emphasises the importance of being investment ready

9. a different bank for people who want a different world
Paul Harrison, Regional Manager
pharrison@charitybank.org
07917 646337