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
Local welfare assistance schemes provide emergency support to people in crisis. The new report from @npi_research reveals that levels of support vary hugely across London, with five boroughs offering no scheme at all https://bit.ly/2Qd3y1L pic.twitter.com/2UqAYK7mEQ25 May 2019
Funding opportunity: Our Moving on Up initiative is inviting applications from organisations to help us deliver work in Brent. Deadline 13 June. Details here https://bit.ly/2JZSTGw25 May 2019
It's clear that the social security system simply isn't working for too many of those who need it. We're funding the Commission on Social Security led by Experts by Experience to find solutions to some of the system's biggest problems https://bit.ly/2HCe8g924 May 2019