In this blog article we look at the world’s biggest impact investment fund for the creative arts, which has been launched in the United Kingdom this year.
The Arts & Culture Impact Fund for 2020 to 2023 is a new £20 million impact investment fund for arts, culture and heritage social enterprises in the UK. It builds on the success of the Arts Impact Fund; a pilot impact investment initiative for the arts and culture sector launched in 2015.
The fund brings together a mix of public, private and philanthropic investors including Arts Council England, the National Lottery Heritage Fund, Big Society Capital, Bank of America, the Esmée Fairbairn Foundation and Nesta.
- Funding and eligibility
The new fund offers repayable finance between £150,000 and £1,000,000 with a repayment term of one to ten years and interest rates ranging between 3% and 10%.
To be eligible for this funding, an organisation must demonstrate that it meets the following criteria:
- its core operations or activity is in the arts, culture and heritage sector. Organisations with arts activities ancillary to their primary activities (such has health charities running arts classes for their beneficiaries) would not be eligible to apply. The fund has released a list of disciplines which fall under arts, culture and heritage, including libraries and museums.
- it is registered and operating in the United Kingdom. Unincorporated organisations are not eligible for investment. Digital organisations must demonstrate that their primary audience is in the United Kingdom.
- it has a clear social mission. This encompasses charities, community interest companies and community benefit societies with a recognised charitable purpose. Companies limited by shares may also be eligible if they can demonstrate a clear social mission and that a percentage of profits will be reinvested in that mission.
- it delivers specific positive outcomes for individuals or communities. A plan should be put in place by each organisation to articulate how positive outcomes will be delivered and its tools and processes for impact management.
Further details on applications to the Arts & Culture Impact Fund can be found on the fund’s website.
If you have any queries on impact investment funds, including whether your organisation is eligible to apply for this particular funding, please get in touch with the Stone King team.