Charities Aid Foundation
Fund has given unsecured loans to 22 charities since its launch in July last year
The Charities Aid Foundation has awarded more than £2m during the first year of its Social Impact Fund.
The fund, launched in July last year, gave unsecured loans of £2.2m to 22 charities that supported thousands of adults and young people, its annual report says.
The fund enables individual givers to invest in a trust, which then invests in charities and social enterprises. Once the organisations repay the loan, this money is recycled to support other causes. After an agreed period of time, the money is returned to the individual’s CAF charitable trust for them to either reinvest or donate to charity.
Beneficiaries of the fund so far include Village Water, a charity that received £50,000 to provide hygienic water in Zambia, and Midi Music Company, which received £36,000 to offer music lessons, courses and career advice to 2,500 children and young adults.
Stephanie Sturrock, director of social investment at CAF, said: "The first year of our Social Impact Fund has shown how it can transform the work of charities by helping them expand or find new long-term sources of funding.
"Social investment has huge potential to expand the work of charities and other organisations, and to recycle money so it works harder for the causes people care about."
