Welcome to SCRT's October 2015 Bulletin
This is our last bulletin before our Social Finance: Social Investment: Social Banking conference on the 19th November. If you haven't already booked your tickets, please do as places have started to fill up in the last week.  It's a great programme that is sure to inform and challenge delegates.  

Don't forget our AGM will take place immediately after the conference. Look forward to seeing a lot of our members there.

This month's bulletin features articles on the Govanhill Pound, Review of UK social investment deals, Airdrie Savings Bank, Charities and public procurement amongst others.
Scotland's only Mutual Bank cements its commitment to the Third Sector.

Airdrie Savings Bank (ASB), already engaged with SCRT through its partnership offering of the Anchor Savings Account, signalled their interest in deepening their engagement with the social enterprise sector by recruiting a new business development manager.  Niall Alexander will join ASB from mid-November; bringing a background immersed in social enterprise, community development, social impact and community finance...Read More Here

'People's Bank of Govanhill issue the Govanhill Pound'
As banks increasingly leave the high street and show no interest in serving local people or small local businesses, new forms of money exchange  are being tested across the UK.  From bitcoins to LETS to local currencies, all innovative alternatives to sterling.   The artist in residence at Govanhill baths has created the Govanhill Pound. This can be exchanged for goods in local shops in order to encourage people to shop locally. Govanhill is quickly becoming a beacon of urban people-led regeneration....Read More Here

Review of EngagedX data set highlights Social Investment issues re supply, demand and affordability

The report is based on a dataset of 426 loans made during 2002 – 2014 and highlights three key point. Social Investment that is currently available is still too expensive and has been getting more expensive since 2011. The real demand is for loans below £150k in particular for sub £75k. Finally, there is a lack of long term genuinely ‘patient’ capital at rates substantially below current rates of 8%, however the business model of SIFIs based on BSC capital repayment rates of 5% makes that a very difficult proposition for them to meet...Read More Here

Charities and Public Sector Procurement

Two linked but contradictory stories from Civil Society magazine this month focusing on charities and public sector contracting. One from the point of view of charities saying the public procurement system is not working for them and needs a fundamental review. The other focuses on the success down south of the Investment and Contract Readiness Fund in using grant money to secure an additional £233m of contracts and investment.  If national charities are saying contracting culture need to be reformed, then we need to listen...Read More Here
Social Impact Bonds - Failing to impact in Germany
Since the first SIBs was trialled in the UK, they are now being rolled out across the world. In an earlier bulletin we ran a story about funder Goldman Sachs pulling out of an America SIB due to poor results. It seems SIBs are also not setting the world alight in Germany where they are not getting good press because they are perceived to be too complex, not particularly useful and offering low returns on investment. For how much longer will this model continued to be held up as a panacea for achieving social and financial returns...Read More Here
Social Impact Investment and Risk Appetite
SCRT is an advocate of social investment, but is critical of the current supply of social investment and social finance which our experience and research indicates is not meeting the needs of the third sector particularly when it comes to taking risk and funding innovation. However, it would appear this is not just a problem in the UK, it is also a problem in the developing world where risk and innovation are crucial if they are to begin to address their development needs...Read More Here

Is Social Investment really about financing the Third Sector?

The Director of SCRT looks back over the years since the establishment of the Social Investment Taskforce in 2000 and asks if Social Investment interest is shifting from the 'not for profit' third sector and is now increasingly looking at providing finance to hybrid 'for profit' models instead.  The article also asks if hybrids access social investment does that make them part of the third sector...Read More Here

JOIN US..Scottish Community Re: Investment Trust is an independent charity working to influence, inform and assist the Scottish third sector to align its financial resources and financial planning with its aspirations for a more social and environmentally just Scotland. 

If you are interested in our work there are two main ways to show your support. Organisations can take out free membership of SCRT. We now have a new Associate Membership category for organisations and individuals not eligible for Full Membership. All organisations and individuals working in the sector can, however, open an Anchor Deposit Account.
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21 Walker Street, Edinburgh EH3 7HX.