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 week is London Challenge Poverty week, a chance for people to speak out about poverty across the capital. We will be tweeting about the reality of poverty in London throughout the week, and what we we must do as a society to solve it. #LDNChallengePoverty @4in1015 Oct 2018
58% of Londoners in poverty are from a working family. The changing face of poverty must be met by a new approach from government. We need housing costs to be controlled, and more employers to pay the real living wage. https://www.mirror.co.uk/news/politics/poverty-moved-dole-queue-workplace-13441046 …19 Oct 2018
"It's incredibly disempowering to not understand how your benefits work, or how much money you are entitled to from each payment." Good discussion from the floor at our event about #UniversalCredit with @LCPAlliance @policy_practice @MindCharity @CPAGUK #LDNChallengePoverty19 Oct 2018
#UniversalCredit can be very difficult to manage for people with mental health problems. @MindCharity are pushing for people's other benefits not to be taken away until they receive their first payment under Universal Credit. #LDNChallengePoverty19 Oct 2018
People affected by the benefit cap are more likely to move into work than before the cap began. But for every 1 child in a family which gains work, there are 5 who get less welfare because of the cap. Devan & @policy_practice say this is a poor trade-off. #LDNChallengePoverty pic.twitter.com/cyxwITuZzW19 Oct 2018