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.
In the last three years we have invested approximately £3 million into projects that will deliver 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 YMCA London South West to implement Y Cube – an innovative housing solution
Another much larger investment (of over £2 million of loan and 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
Read the new report from Middlesex University on unpaid workers, part funded by Trust for London #unpaidbritain https://www.trustforlondon.org.uk/news/employers-withholding-billions-pounds-workers-britain/ … pic.twitter.com/DMFYvNxm1D30 Nov 2017
27% of Londoner's live in #poverty - if you're working to support poor people in London, you might be eligible for funding from us. Retweet and spread the word https://www.trustforlondon.org.uk/funding/10 Dec 2017
Only 4 days left to apply to join City Hall's social integration team. Get applying this weekend and retweet to spread the word! #citizenship #democracy #diversity https://www.trustforlondon.org.uk/news/call-proposals-citizenship-and-integration-initiative/ …9 Dec 2017
Our trustee @GowmanAJ writes about the role of funders like us in tackling #inequality https://www.civilsociety.co.uk/voices/alison-gowman-role-of-funders-never-more-important.html …8 Dec 2017
"Every one of us would have done anything to be in a safe and loving family home, watching television, eating regular meals, putting on the kettle and playing with the dog." Tragic first hand account of #homelessness from @salihughes https://www.theguardian.com/society/2017/dec/08/i-was-one-of-the-hidden-homeless-i-needed-help-to-build-my-life?CMP=share_btn_tw …8 Dec 2017