Transcript Document

overview
A new £30m fund being subscribed over three years to invest
in building the capacity, capabilities and sustainability of third
sector organisations.
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outcomes-focused investment priorities.
investing over 3 years (2008 – 2011) and beyond.
a fundamentally different approach to previous grant regimes.
investments tailored to individual organisations requirements.
loans, ‘patient’ capital, and strategic investments.
target characteristics
established third sector organisations located and trading in
Scotland which reinvest surpluses for social or environmental
purposes and:-
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have been operating successfully, partly through income
generation, for at least three years.
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have established successful experience in public service
delivery or trading in other markets.
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have potential to grow their turnover and/or become
financially sustainable.
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are ‘investment-ready’ in terms of management,
governance and financial position.
ineligible
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organisations with no track record of generating income
other than grants.
organisations that are insolvent or at risk of insolvency.
proposals that seek to replace existing debt finance.
subsidiaries of public bodies (e.g. local authorities).
housing construction and management operations of
registered social landlords (RSLs).
proposals that relate to the on-going delivery costs of
services or projects.
proposals that would normally be funded by commercial
loan finance or other funding sources.
organisations where the beneficiaries live outside Scotland.
investment priorities
2008/09 investment priorities will focus on organisations
with social missions that address issues of:
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employability
environmental action
the underlying causes of health inequality
Other priorities will emerge as the fund develops.
investment products
investments will be tailored on a case by case basis and may
contain a mix of :-
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loans - business plans will assessed for loan first (including
commercial loans) before any other investment is considered.
risk/’patient’ capital - devised to deliver a mix of financial and
social returns.
strategic investments - (non-repayable) amounts based on
social outcomes and will not comprise more than 50% of any
funding package
development support – for organisations ‘almost but not quite’
investment-ready. SIF will consider funding to pay for
accounting or legal advice/support in relation to areas such
as marketing, human resources,
investment process
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initial screening against published investment criteria to
establish eligibility and ‘investment-readiness’.
collection of brief details of the organisation and the
investment being sought.
discussion/feedback to assess ‘fit’ with investment priorities.
rigorous assessment of business plan, focused on four
elements – business model – organisational development –
financial stability – projected social outcomes.
development of investment package, submission to
investment panel with recommendations.
approval and documentation
monitoring and evaluation.
Social Investment Scotland
Second Floor
1/2 St Andrew Square
Edinburgh EH2 2BD
0131 558 7706
www.socialinvestmentscotland.com