CHARITY BANK: A BANK FOR GOOD

The Clothworkers’ Foundation Invests £1 million, Alongside Other Major Funders

The 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.’ responding to an array of urgent social issues, but following an extended period of public budget austerity, many have struggled to secure sufficient funding. The effects of the coronavirus pandemic have only made this situation worse. In the midst of the COVID-19 crisis, when many lenders moved to the sidelines, Charity Bank approved a record level of new loans. The new equity investments we have secured will enable us to continue to grow our lending and to offer the bespoke financing solutions that will be needed by many organisations as they rebound from the effects of the pandemic.’

Michael Jarvis, Chair of The Clothworkers’ Foundation Social Investment Sub-Committee said, ‘Charity Bank’s social impact multiplier effect was a key motivation behind our investment. For every £1m of investment capital, Charity Bank can raise around £7m of savings and therefore make more than £8m of social loans. When the loans are repaid, these funds can be recycled again and again, generating even greater multiples of social impact. We are thrilled to join Charity Bank’s inspiring group of shareholders and are excited that this further investment of ours into the social sector will be multiplied to benefit many charities and social enterprises.’ than 1,000 loans totalling over £350m to housing, education, social care, community and other social purpose organisations. Charity Bank aims to use its expertise, commitment and flexible approach to lending to help charities and social enterprises get the support and funding they need.

A Charity Bank loan recently helped Collaborative Women purchase their first property. The social enterprise offers accommodation for single women fleeing gender-focused abuse and provides them with the support they need to escape the cycle of domestic violence. As well as providing a safe haven for its vulnerable residents, the property is now an asset base for the social enterprise so that they can access more funding for future growth.

Watford Mencap will soon be moving into its new community hub, thanks to a £1m loan from Charity Bank. The charity offers a wide range of activities for children and adults who have a learning disability. The new hub will bring all of Watford Mencap’s services together in one place and be used by hundreds of children and adults every year.

Find out more: www.CharityBank.org.

“We are thrilled to join Charity Bank’s inspiring group of shareholders and are excited that this further investment of ours into the social sector will be multiplied to benefit many charities and social enterprises.” Michael Jarvis, Clothworker Nothing in this publication constitutes advice or a recommendation. Professional advice should be taken before any course of action is pursued.