Social investment: an alternative to grant funding
Posted on 18 November 2024 by Chris Allen in Funding Loans
Funding is incredibly sought-after in the voluntary sector, and grant funding seems to be where a lot of organisations focus their efforts. But could the alternatives, like loans and social investment, be equally valuable to your organisation or project?
Organisations like Triodos Bank and Social Investment Scotland offer social investment: loans and finance which have measurable social or environmental impacts on the organisation, its beneficiaries and the wider community.
Social investment raises capital from investors with a social conscience, providing funding for eligible charities and voluntary sector organisations. "Crowdfunding" isn't just for individuals raising money for a charitable cause e.g. a sponsored marathon; it can also provide funding for larger amounts and organisations. For instance, Triodos Crowdfunding could offer:
- Capital raising from £250k to £10m
- Unsecured/secured bond offers
- Share offers
- Access to a wide range of investors
- End-to-end management of the capital raising process
Similarly, Social Investment Scotland have a range of funds and loans, including a bridging loan for short-term gap coverage, and their standard investment stream which can help finance the purchase of assets or equipment, support a new enterprise, and more.
It's worth reiterating that unlike a grant, a loan requires paying back. Only investigate social investment if your organisation is in a position to repay any finance you may receive.
Take a look at the options provided by Social Investment Scotland and Triodos Bank, or search more broadly for loans on Funding Scotland here.