Charities must be careful to use social investment wisely or risk damaging a young market, a guide from New Philanthropy Capital has said.
Best to Borrow? A Charity Guide to Social Investment is intended to help charities evaluate the opportunities and risks in taking on social investment.
It says charities have already taken on more than £500m in social investment, and this is expected to rise in the coming years.
Dan Corry, chief executive of NPC and who provides the foreword to the report, said: "I think social investment has the potential to produce a big impact. It has the ability to help people who want to scale up, but it’s coming at a time when charities are short of money.
"If people take it on when they shouldn’t then it risks damaging a very young market. This report is about helping charities understand those risks."