FINANCE NEWS: CAF to launch fund to offer support to high-risk charities

The Charities Aid Foundation (CAF) is to launch a Risk Investment Fund to provide financial support to charities deemed too high a risk by mainstream lenders.

CAF will initially invest £1 million in the fund, which will use debt, underwriting, guarantees, redeemable grants and equity investment to complement grant support to voluntary organisations and social enterprises.

It hopes to occupy a "niche area

between grant-makers and lenders to charities such as CAF's own Investors in Society.

John Kingston, CAF's head of individual donor services, said that the fund will also raise money from personal charitable trusts, foundations and companies.

CAF aims to raise the fund to £50 million over 10 years. "We anticipate that growth will be exponential rather than straight-line, and therefore we are targeting a capital fund of £5 million within the first three years,

said Kingston.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus