CHARITY BANK: A BANK FOR GOOD The Clothworkers’ Foundation Invests £1 million, Alongside Other Major Funders
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he Clothworkers’ Foundation has invested £1m in Charity Bank, the loans and savings bank for charities, social enterprises and people who want to make the world a better place. Charity Bank uses its savers’ deposits and shareholders’ investments to provide loans to UK organisations working to drive positive social change – bringing benefits for people, communities and the environment. By leveraging the investment by The Clothworkers’ Foundation with deposits, the bank will be able to make more than £8m in new loans to UK charities and social enterprises at a time when the social sector is in acute need of sustainable financing solutions. This investment is part of a successful £5m capital raise by the bank. All of Charity Bank’s shareholders are charitable trusts, foundations, or social-purpose organisations. The bank believes new investments like this are evidence of the growing appetite among trusts, foundations and other impact-first organisations to make social investments (alongside grantmaking) that can help them meet their social impact objectives. The Clothworkers’ Foundation started its social investment programme in 2017 (with an initial designation of £750,000 from The Clothworkers’ Company). Ed Siegel, Chief Executive, Charity Bank, said, ‘With this additional investment, we will be able to expand and broaden our support, helping more charities and social enterprises access the funding they need to sustain and grow their services.’ ‘UK charities and social enterprises are
responding to an array of urgent social than 1,000 loans totalling over £350m issues, but following an extended to housing, education, social care, period of public budget austerity, many community and other social purpose have struggled to secure sufficient organisations. Charity Bank aims to funding. The effects of the coronavirus use its expertise, commitment and pandemic have flexible approach only made this to lending to help “We are thrilled to join situation worse. charities and social Charity Bank’s inspiring In the midst of enterprises get the COVID-19 the support and group of shareholders crisis, when many funding they need. and are excited that lenders moved this further investment to the sidelines, A Charity Charity Bank Bank loan of ours into the social approved a record sector will be multiplied recently helped level of new loans. Collaborative to benefit many charities The new equity Women purchase and social enterprises.” investments we their first property. have secured The social will enable us enterprise offers Michael Jarvis, Clothworker to continue to accommodation grow our lending for single women and to offer the bespoke financing fleeing gender-focused abuse and solutions that will be needed by many provides them with the support they organisations as they rebound from need to escape the cycle of domestic the effects of the pandemic.’ violence. As well as providing a safe haven for its vulnerable residents, the Michael Jarvis, Chair of The property is now an asset base for the Clothworkers’ Foundation Social social enterprise so that they can access Investment Sub-Committee said, more funding for future growth. ‘Charity Bank’s social impact multiplier effect was a key motivation behind our Watford Mencap will soon be moving investment. For every £1m of investment into its new community hub, thanks to a capital, Charity Bank can raise around £1m loan from Charity Bank. The charity £7m of savings and therefore make offers a wide range of activities for more than £8m of social loans. When children and adults who have a learning the loans are repaid, these funds can disability. The new hub will bring all of be recycled again and again, generating Watford Mencap’s services together in even greater multiples of social impact. one place and be used by hundreds of We are thrilled to join Charity Bank’s children and adults every year. inspiring group of shareholders and are excited that this further investment Find out more: www.CharityBank.org. of ours into the social sector will be multiplied to benefit many charities and Nothing in this publication constitutes social enterprises.’ advice or a recommendation. Professional advice should be taken Since 2002, the bank has made more before any course of action is pursued. THE CLOTHWORKER | AUTUMN 2021
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