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
It is important to #knowthedifference between the "Real Living Wage" and the "National Living Wage". The "National Living Wage" is a rebrand of the "minimum wage", but is not calculated according to what people need to live. The full figures are in this table from @LivingWageUK pic.twitter.com/LvHTcji6sg25 Jul 2018
We made over £750 million of social investment in 2017. Read about that and the rest of our work last year, in our Annual Review. https://www.trustforlondon.org.uk/publications/review-2017/ … pic.twitter.com/fvj8GQRJOY18 Aug 2018
Many #gigeconomy workers struggle with low pay. They are often denied basic employment rights such as minimum wage and holiday pay because of being bogusly defined as self-employed. The Government needs to review this to better support low-paid workers.18 Aug 2018
"Although homeless people are as diverse as any other group, common themes emerge. Harsh treatment by impoverished authorities is one." New book by @TamsenC_Writer gives a voice to homeless people to tell their own stories. https://www.theguardian.com/books/2018/aug/17/four-feet-under-tamsen-courtenay-homeless-sleeping-streets-review …17 Aug 2018
This is a terrible crime to commit against a vulnerable child. We need to work with the most affected communities to make further progress on rooting out FGM from our city. https://www.standard.co.uk/news/crime/girl-3-needed-emergency-surgery-after-botched-fgm-in-london-a3914076.html …17 Aug 2018