Social investment seeks to achieve a social and financial return. The financial return is measured using a conventional approach. Social impact is added to that financial return to allow an overall comparison with the risk incurred. Social investment is an attractive source of funding for social organisations that struggle to access finance from banks due to their lack of assets that can be secured. It comes with many standard and bespoke formats.
Key learning objectives:
What is social investment?
Outline some of the forms of social lending
What are some of the challenges of lending to charities?
Define some core social investment products