Demystifying Social Finance and Social Investment

by Mark Salway, Paul Palmer (Editor), Peter Grant (Editor), Jim Clifford (Editor)

Overview

Social finance and social investment are not challenging concepts to grasp. They use commercial-style investment tools to create a social as well as a financial return. The application, however, is not always as straightforward. This book begins in the wider field of social finance but focuses primarily on social investment as a tool. The reader is helped to understand this from different angles: introducing social investment, discussing social investment and taking a "deep-dive" into it to bring it to life. This unique book takes the reader on a journey from first principles to detailed practical application.

This book examines the policy context and asks why social investment has only recently become so popular, when in reality this is a very old concept. This is linked to the agenda of making charities more "business-like", set against the changing face of investment, as charities can no longer rely on donations and grants as guaranteed income. The work they do is more important than ever and social investment, used with care, offers a new opportunity that is further explored in this text. Mark Salway, Paul Palmer, Peter Grant and Jim Clifford will help readers understand how a small amount of borrowing, or a different business model focused away from grants and donations, could be transformational for the non-profit sector.

Product Details

ISBN-13:	9780367556280
Publisher:	Taylor & Francis
Publication date:	10/29/2020
Series:	Charity and Non-Profit Studies
Pages:	336
Product dimensions:	6.88(w) x 9.69(h) x (d)

About the Author

Mark Salway FCA is a Chartered Accountant with over 20 years of finance experience in the charity sector. He has been Finance Director at several large charities, and also worked as a management consultant at both commercial and non-profit organisations – such as the UN, Age UK, the Wellcome Trust, and WSUP (Water and Sanitation for the Urban Poor) – and with the government.

Mark was invited into Cass Business School, Centre for Charity Effectiveness (Cass CCE), to start its fledgling work

on social investment and social finance. He led this successfully for five years. This eventually changed into focusing on financial sustainability and nonprofit business models. Mark currently runs the consulting services to charities at Moore Kingston Smith, a major UK accounting and advisory firm. He also runs several MSc modules at Cass Business School, where he is continuing his research work.

Table of Contents

Acknowledgements ix

Editors' introduction and how to use this book 1

1 Editors' introduction Paul Palmer Peter Grant Jim Clifford 3

2 How to use this book Mark Salway Paul Palmer Peter Grant Jim Clifford 8

Introducing social investment 11

3 The purpose of this section: introducing social investment Mark Salway 13

4 The landscape of social purpose organisations Mark Salway 15

5 What is social investment today? Definitions, sources and types of investment Mark Salway 19

6 Why do charities need new funding models? The case for change Mark Salway 33

7 How did we get here? The very fine history of social finance Peter Grant 40

7a Case study: 'Scope' Tom Baughan 49

8 What do social purpose organisations and investors want from social investment? Matching supply and demand Mark Salway 54

8a Case study: Bridges Evergreen Holdings Scott Greenhalgh 69

9 Are we ready for social investment? Re-imagining charity business and operating models and governance principles Mark Salway 73

9a Case study: Southmead Development Trust: Big Society Capital 87

10 How do we begin thinking about social investment? The nine components of social investment. A model Mark Salway 89

10a Case study: Big White Wall: Big Society Capital 102

Discussing social investment 105

11 The purpose of this section: discussing social investment Mark Salway 107

12 The case for social investment, and how to "democratise" capital Mark Salway Nigel Kershaw 108

12a Case study: Panahpur James Perry 112

13 It's all about the culture Jonathan Jenkins 116

13a Case study: Inqo Investments Ltd Jim Tan 122

14 What do family offices and foundations want from social investment? Megan Preston Gamil De Chadarevian 128

14a Case study: Charities Aid Foundation and St Mungo's Holly Piper 140

15 Critiquing social finance: are there alternative models? Richard Hazenberg Simon Denny 146

15a Case study: SASC (Social and Sustainable Capital) Ben Rick 159

16 Impact measurement in social investment Abigail Rotheroe 163

16a Case study: WSUP and Unilever - Clean Team Ghana Diane Chilangwa Farmer 184

17 Can social investment become sustainable? Craig Dearden-Phillips 188

17a Case study: Lendwithcare (lendwithcare.org) Itracey Horner Mark Salway 198

18 What about small charities and social investment? Leila Baker Niamh Goggin 202

18a Case study: Oomph!: Big Society Capital 215

19 What does the future of social investment look like? Cliff Prior Marcus Lees-Millais 217

Doing social investment 227

20 The purpose of this section: doing social investment Jim Clifford 229

21 Social investment: a practical outline Jim Clifford 242

22 Finding the right funding Jim Clifford 255

23 Structuring the deal Jim Clifford 255

24 The importance of due diligence Jim Clifford 267

25 Accounting for social investment Jim Clifford 276

26 Reporting on impact, and the importance of good data management Jim Clifford 283

27 Governance aspects of social investments Jim Clifford 294

Appendices 305

Appendix 1 28 questions for social investment success 307

Appendix 2 The language, terminology and nomenclature of social finance and social investment 309

Glossary 311

Index 314