Social investment on the up

13 April 2006

Venturesome, the social investment fund operated by CAF (Charities Aid Foundation), has now supported more than 100 charities and other voluntary sector organisations and raised £6 million for its investment fund.  Venturesome provides underwriting, unsecured loans and other financing facilities to meet working and development capital needs. 

Social investment is about achieving both financial and social returns.  One of the organisations to benefit from the Venturesome Fund has been Sussex-based Inside Out Trust which develops and supports workshop projects in prisons.

The Trust, which approached Venturesome after experiencing financial difficulties, was offered a loan of £100,000.  The loan enabled the Trust to continue its work with offenders to build their confidence and self esteem, gaining skills to secure employment on release.  The loan will be repaid to the Fund over three years, meaning that those financial resources will be available for future use by other organisations.

Inside Out Trust is one of a growing number of voluntary sector organisations looking to access funding outside traditional sources, such as high street bank loans and charitable grants: many purposes fall outside traditional grant makers' guidelines or are too risky for a bank lender.  CAF launched Venturesome to bridge this funding gap. 

According to John Kingston, Director of Venturesome: "It's an exciting time for Venturesome and CAF - we are seeing the social investment market place evolve as increasing numbers of charities are reassessing their views on loan funding.  Venturesome invests in the heart of charities to help them grow, providing funding not available from grant sources, while taking financial risks that lenders are not prepared to take.

"We are delighted to have worked with so many charities and not-for-profit organisations and that the fund has now reached the £6 million landmark.  This would not have been possible without the 12 companies, trusts and individuals that support us.  We look forward to continuing to play a lead role in the evolving landscape of social investment."

For more information about Venturesome contact Email: jkingston@cafonline.org,
Tel: 020 7832 3024 or visit www.cafonline.org/venturesome