The work of Trust for London is not limited to making grants; we also use our resources to tackle poverty and inequality in other ways. One of the ways we do this is through social investment. We call this strand of our work ‘Capital for London’.
Entirely separate from our grant making, social investment (sometimes called ‘mission related investing’) allows us to offer organisations the financial investment they need to support work which generates an income whilst delivering social returns. For example, a community organisation that needed funds to start a trading venture or to scale up its capacity to deliver contracted services, could be funded in this way.
This type of support can help organisations to diversify their funding base, reduce their reliance on grant funding and increase their social impact. Typically our social investments will be loans or equity but, unlike grants, must be repaid with interest. Whilst we can be flexible about the size or type of investments we make (and how much interest we will charge), all investments of this type must deliver useful social outcomes.
We therefore want to hear from organisations (with a viable business case) seeking or considering investment as a way to help them develop sustainable work with positive outcomes for society. Like our grants, our social investments can only support work that benefits Londoners, but we look at each opportunity on a case-by-case basis and are happy to discuss early investment ideas with you.
Importantly, making social investments does not affect the amount of funding we have available for grant making.
Currently, we have £8.2 million invested in projects that are delivering important social benefits. Two recent examples include:
- A £150,000 loan to Bathtub2boardroom to help expand its services supporting new entrepreneurs.
- A £250,000 loan to K10 to help it increase the number of excluded Londoners accessing high quality apprenticeships in the construction industry.
One significant investment (£2 million of equity) has helped create the Foundry – a large scale project that brings together some of London’s most innovative and progressive social justice and human rights organisations in an affordable award winning building.
We’re listed on Good Finance, a website to help charities and social enterprises navigate social investment.
Capital for London: what we will invest in
Capital for London FAQs
From our Twitter
This study spoke to young black men searching for good city jobs in London. 38% said that the demeanour of people interviewing them for jobs would change when they saw that they were black. https://www.trustforlondon.org.uk/publications/moving-young-black-men-londons-financial-sector-aspirations-and-experiences/ …15 Dec 2018
This study from @justlifeuk found that over half of people in unsupported temporary accommodation reported having no working locks on their doors. Temporary Accommodation Boards would help to make life easier for people in this unwelcome situation. https://www.trustforlondon.org.uk/publications/are-temporary-accommodation-boards-feasible/ …14 Dec 2018
We give funding to organisations seeking to tackle poverty and inequality in London. Find out more about what we fund here: https://www.trustforlondon.org.uk14 Dec 2018
Almost two thirds of jobs in the hospitality sector are low paid. With most Londoners in poverty from a working family, we need to address the high costs and low pay which are driving Londoners into poverty. pic.twitter.com/JJS22vQFVL13 Dec 2018