Definitions
We know that some of the jargon around social investment can be confusing, so we've put together a short explainer.
Blended finance
Blended finance combines different types of funding—usually grants and repayable finance—to make social investment more accessible and effective.
Blended finance products
Blended Finance products combines repayable finance and part grant. Specialist social investors and grant makers may offer this, but you can also source blended capital yourself by applying for both grants and loans.
Blended finance structures
This occurs at a fund level where concessionary capital like grant, guarantees or tax reliefs is blended or mixed with the non-concessional capital which is then used to provide repayable finance for social enterprises and charities.
Dormant Assets
The Dormant Assets Scheme unlocks money from forgotten bank and building society accounts, if these lost funds cannot be returned to their owners money can be transferred to the Dormant Assets Scheme to be distributed to defined recipients who fund social and environmental initiatives.
Enterprise Grants
Enterprise grants help charities and social enterprises strengthen their financial resilience by developing or expanding income-generating activities. These grants support organisations where repayable social investment isn’t yet the right fit, giving them the opportunity to grow and become more self-sufficient.
Pre and post investment support
Pre- and post-investment support – sometimes called "technical assistance (TA)" – includes advisory services, training, and other support provided to charities and social enterprises before or after they take on social investment.
Market Development
Market Development refers to activities that make the social investment market more collaborative, efficient, and equitable. This includes developing networks, improving data and learning approaches, enhancing information and signposting, and supporting research and development to drive innovation and improve processes.
Social Investment
Social investment is repayable finance that aims to achieve both a social and a financial return. It typically takes the form of a loan or other debt-based product, often used to support new or existing income-generating activities. Because the finance must be repaid, social investment is not a substitute for income — organisations need a trading model or reliable revenue stream to be able to repay the investment.
Social investment wholesaler
an investor which makes larger investments in funds or financial organisations (social investment finance intermediaries) that will themselves invest smaller amounts in a number of charities and social enterprises. Big Society Capital is the UK social investment wholesaler.
Social investors
Also know as social investment finance intermediaries (SIFIs)
An organisation that provides, facilitates or structures financial investments for social sector organisations and/or provides investment-focused business support to social sector organisations.
For more – visit the Good Finance Jargon Buster