Investing for social impact
SIS creates significant social impact through its investments. All our customers work within their communities in a range of different ways and you can find out more by reading some of their stories.
In mid-2012 we produced our first Social Impact Report which outlines these stories and provides a framework for future measurement. You can download a copy here.
Social Investments are usually business loans provided by social investors only available to third sector organisations. Unlike grants and donations, these are loans which organisations repay and use to create real social impact.
Who provides social investment?
It can be difficult for third sector organisations to obtain business loans or bridging loans from mainstream banks. Social investment funds provided by organisations such as Social Investment Scotland have helped to fill this void support growth in charities, community organisations and social enterprises. SIS is the largest investor of its type in Scotland and is a social enterprise in its own right, however operates in partnership with a range of organisations who also have an interest in this field.
What does social investment look like?
Social Investment is an emerging area of interest in the UK with many new and innovative models being developed. Investment aims to increase the sustainability and support the growth to enhance the impact of a charity, community group or social enterprise. In its simplest form it may be a basic loan however more innovative models of financing are being developed. Social investments look for a social return rather than just a financial return like an interest rate.
What makes a good social investment?
Essentially one that maximises it's impact- be that economic, social or environmental- and in a sustainable way. A range of different tools are used by organisations to demonstrate and measure impact and investors will be most attracted to those investments that offer the greatest impact.
Is this a new idea?
Although social investment is now attracting interest from a range of different bodies and governments, it is a well established concept and has developed in tandem with the growth of more enterprising third sector organisations. The marketplace in Scotland is made up of a range of organisations including philanthropists, charitable trusts, ethical banking groups and Government.