Introduction to Social Finance
Social finance includes any finance where the investor seeks both a financial and a social return on his their investment.
We have been working with our charity clients to develop a number of creative initiatives for funding social enterprises. Our Social Finance work draws on the expertise of both Charity & Social Enterprise lawyers and Corporate Finance lawyers.
Our work with investors
We are advising charities, social enterprises, businesses and individuals on ways that they may invest into entities, projects and initiatives for both a social and financial return.
For individuals the concept of social investment has become more attractive owing to the recent introduction of the new social investment tax relief.
For charities, the question of making social investments is additionally complicated due to certain perceived grey areas in the law at present. The Law Commission has consulted on this and we have been at the forefront of that consultation process, submitting a response to the Law Commission and taking part in the Charity Law Association’s response to the consultation. We support the introduction of the new power.
Businesses may wish to invest in social finance for a variety of reasons, including an interest in a particular social area and corporate social responsibility.
Our work for organisations seeking funds
We are working with a number of organisations, including registered charities and social enterprises, industrial and provident societies and community interest companies on ways that they can access social finance. Since the introduction of the new social investment tax relief, we have developed structures which will enable them to maximise the benefits arising from the new relief to raise money for their social purposes.
Services we can offer
We can assist with the following;
- strategy and structuring financing arrangements, including taking advantage of the available tax reliefs;
- preparing standard loan documentation and security documentation for a variety of types of lending;
- reviewing loan or security documentation;
- advising on, and establishing, new social enterprises;
- advising on equity structures for social enterprises;
- advising on regulatory requirements in relation to financial promotion restriction; and
- advising charities on their ability to make social investments.
Supporting charities and social enterprises is our core focus. Please get in touch with us today to discuss how we can support you in relation to social finance.