Besides charities, what are other ways of making a difference?
Your clients have a range of philanthropic options to choose from, offering a mix of social and financial returns.
- Charity lending: Providing risk-based finance to charities for purposes of working capital, development capital or bridging finance for fundraising projects. Learn more...
- Microfinance: Microfinance organisations (MFIs) provide financial services to people on low incomes who do not have access to credit and other financial services. There are various intermediaries and funds through which individuals can invest in microfinance in the UK and internationally. Learn more...
- Social enterprises: Philanthropists can play an important role in supporting social entrepreneurs through funding, mentoring, and brokering contacts and networks. Learn more...
- Individuals: Making a difference to individual lives is one of the most rewarding aspects of philanthropy. Popular areas are the arts, education, sports and entrepreneurship. Learn more...
- Social businesses: Business that integrate commercial objectives (growth, profits) with a social, ethical or environmental mission. Learn more...
- Community development finance: Community development finance tackles poverty through wealth creation. Community development finance institutions (CDFIs) provide finance and support to businesses and individuals in disadvantaged communities. Investing in a CDFI is tax-efficient, and offers both financial and social returns. Learn more...
- Socially responsible investment (SRI): What was previously seen as a relatively niche area for a few well intentioned investors is now clearly very big business: there is now almost £9 billion invested in Britain's green and ethical funds, divided among nearly 100 different green and ethical mandates for retail investors. Learn more...
Case study: social investment
A private client who has been an inventor and entrepreneur all his life was seeking investment advice from his private bank. His portfolio had suffered through the credit crisis and he approached his relationship manager with the request to “do something more interesting with (a proportion of) his money”, and was especially interested in direct investments in education and scientific projects.
