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Welcome to SCRT's July 2016 bulletin focusing on social finance; social investment and social banking.
  • JOIN US...If you are interested in our work then why not join our 150+ members and take out SCRT free membership or associate membership. 
  • Our banking partner Airdrie Savings Bank (ASB) is offering all organisations and individuals working or volunteering in the Scottish third sector an Anchor Deposit Account 
  • This month, ASB also launched a Social Mortgage giving you the opportunity to bank with an ethical bank whilst supporting your third sector organisation.  
 New RBS report shows that UK banks lending £3bn to    Third Sector.
The £3bn figure is based on RBS's own lending to the sector which is then extrapolated across other banks. 'The Forest for the Trees' report also claims that UK banks do not discriminate against third sector organisations. Whilst welcome, it goes against the anecdotal evidence, of many in the sector, who struggle to secure money from mainstream banks. One of the more interesting findings is that banks, along with Social Investment organisations, are still not providing the type of money that the sector requires - unsecured, micro and long term growth finance. The report also calls for a greater range of social investment options such as intra-sector lending, peer-to-peer lending and crowdfunding, mirroring many of the options SCRT is interested in developing...Read More

Social Investment Scotland releases findings on the motivations of investors in its Community Capital Fund.

Many of us wonder how much 'social' return a social investor is really interested in?  When you read our BSC story (below) you can see why. When SIS launched its Community Capital Fund last year, it was the first in the UK to use Social Investment Tax Relief (SITR) aimed at encourgaging people to invest into the sector. This report adds to our understanding of what a social investor really wants and has a number of interesting findings - 81% of investors were first time investors in social enterprises; social returns were more important than financial returns; 75% are interested in issues of citizenship, health, employment and environment...Read More

Social Investment Tax Relief generates £3m social investment.

Continuing on the SITR theme, a new report looking at the effectiveness of SITR, two years after its launch, estimates that it has raised £3m for 30 organisations as well as encourgaging people to invest in Community Shares. SITR is a tax break which offers individual investors 30% income tax relief on loans or investments made to charities and social enterprises. Interestingly, because capital repayments on a SITR loans cannot begin until three years and one day after the investment has been made, it is becoming a defacto form of patient capital...Read More

   Sobering assessment of social investment                   process from the front line.

This social entrepreneur's summary of the journey towards securing social investment is very revealing and worrying.
    'Despite the deal effectively giving any investor a 228% APR, and even though we had a clear social mission, we were turned down by every UK-based social investor. Eventually we were funded by a private angel investor who was attracted by the financial return and utterly disinterested in our social mission and values' 
The article goes on to make the following four points. 1) The Social Investment market is extremely risk averse. 2) Most suppliers are not interested in sub £100k deals. 3) There is little entrepreneurism amongst social investors. 4) No one is lobbying to challenge these issues. But there are a few, along with SCRT, who are trying to address these issues to make them more in tune with the needs of the third sector...Read More
 

Australias first Social Impact Bond (SIB) fails

SIBs continue to be promoted as a potential mechanism for bringing private sector investment into the provision of government services. But evidence about the success of payment by results (PbR) models continues to be patchy with as many failing as are successful.  After three years and $1.62m spent on trying to get the first SIB to the starting line, the first Australian SIB has failed before it has even started. As an Australian politician critical of SIBs put it "All the government needs to do is to fund a 'social' group...direct and cut out the middle man."...Read More

Charity Bank increases loans to third sector organisations by 26% in 2015

Charity Bank has announced that lending to third sector organisations across the UK has increased from £53m in 2014 to £67m in 2015/16 year. This growth in lending is continuing in the 2016/17 period with loans in the first period exceeding those made for the whole of 2015/16.  Investments into Charity Bank from BSC, Barrow Cadbury Trust and Mercers Charitable Foundation added to Charity Bank's available funds. Demonstrating that foundations and trusts, as well as giving out grants, are increasingly comfortable investing in the sector - another form of community reinvestment...Read More 

Copyright © 2016 Scottish Community Re-Investment Trust, All rights reserved.


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