Charity Bank receives £500,000 from the Esmée Fairbairn Foundation

Charity Bank has received a £500,000 payment from Esmée Fairbairn Foundation as the bank tries to raise £10m in new investment.

The payment from the foundation is the first part of a plan to double the bank’s lending to charities and social enterprises by 2024.

The bank is attempting to attract £10m in new equity investment from charities, trusts and foundations to fund its expansion.

The plans include extending the bank’s support to smaller charities struggling under funding pressures.

Ed Siegel, chief executive of Charity Bank, said: "For every £1 of capital raised from social investors, we can raise about £7 in deposits from savers and therefore lend approximately £8 to organisations delivering positive social change. 

"This investment from the Esmée Fairbairn Foundation marks the first in a series of equity investments we’re hoping to secure over the next year in order to ensure our continued growth and support for charities and social enterprises that are improving lives and communities across the UK."

Caroline Mason, chief executive of the Esmée Fairbairn Foundation, said: "Charity Bank has proven that lending to charities and social enterprises not only benefits society, but can also be done within an effective business model. 

"We want to help grow the wider social investment market by facilitating the flow of new money into the sector, and we hope to demonstrate with our portfolio that trusts' and foundations’ assets can be invested in a variety of ways to help deliver their charitable aims."

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