Charity Bank

The challenge

For many social enterprises and charities, a loan secured on a building or other asset is an affordable route to finance. However, even organisations with valuable assets often struggle to access funding through mainstream banks. Many are also seeking more aligned and supportive relationships with their financial institutions. Depositors also increasingly want to ensure their savings are held by an organisation who shares their values, and that support impactful enterprises across the UK.

Our approach

Dedicated social banks such as Charity Bank provide finance to UK charities and social enterprises with a deep understanding of their business models and help to lend on attractive terms. They also have strong regional presence enabling them to reach a wide range of organisations. Our approach to supporting social banks is rooted in the critical role they play in the social investment market intermediating between retail investors and charitable borrowers. To date, we have invested £15.5 million in Charity Bank as regulatory capital alongside other shareholders and a co-investment facility, to support them to expand their loan portfolio and scale their positive impact.

The Fund

Charity Bank’s lending portfolio supports a wide range of charities and social enterprises delivering impact on both people and enterprises. Since 2002, they have issued over 1,300 loans totalling over £0.5 billion.

An example of their loans is supporting Magpas Air Ambulance, which responds to approximately four emergencies every day by offering lifesaving treatments and emergency surgical procedures, many of which cannot be carried out by land ambulance paramedics. A £2.5 million loan from Charity Bank has helped the charity move its services to a new, purpose-built airbase, which is more economical to run and helps Magpas reduce response times further.

• Fund size

  £320 million (size of Charity Bank’s loan book)

• Better Society Capital commitment

  £15.5 million