Today, Charity Bank announced at its Annual General Meeting (AGM) that it lent £48.6 million to charities and social enterprises in 2018.
This is up 43% from £34.1 million in 2017 and means it has lent over a quarter of a billion (£270 million) since 2002, to enable positive social change across the UK.
Last year’s loans included £21.2 million to support housing and local facilities projects; £12.1 million for the provision of arts, heritage, sports and faith, and £7.9 million towards employment, training and education.
Having access to funding is essential for charities and social enterprises, with 93% of customers who responded to the Bank’s annual borrower survey agreeing that their Charity Bank loan made a major positive contribution to their ability to deliver on their mission, 79% reporting that it led to improvements to their client servicing, and 76% reporting that the Charity Bank loan enabled them to increase service provisions.
All of the charities and social enterprises polled said their Charity Bank loan helped deliver their mission and over half (54%) of borrowers unlocked additional funding from other sources as a result of the Charity Bank loan.
For the charities and social enterprises which took finance from Charity Bank, their motivations were:
- Needing or wanting to acquire facilities or fixed assets, like a new building (72%)
- Innovation (56%)
- Wanting to grow (56%)
- Wanting to diversify income and improve sustainability (48%)
Edward Siegel, Chief Executive at Charity Bank comments, “Access to funding is crucial in enabling charities and social enterprises across the UK to continue and expand their work. The growth that the Charity Bank team achieved in lending last year is a success story for all of the charities and social enterprises involved. More importantly though, it’s a lifeline for the vulnerable people and communities throughout the UK who benefit from what they do and whose lives are enriched by their work.
“This lending wouldn’t be achievable without our savers - these are people who choose to save and invest for good to drive social change for those who need it. Major social change is only possible if money is invested in ways that benefit society. Growing our community of investors and savers who choose to invest for good is a vital part of our mission and impact. We encourage people to think about where their money is going. Our ultimate goal is a world in which everyone is a social investor or saver.”
Paul Silvester, Chief Executive, Foresight NE Lincs comments "Social investment has been a catalyst for growth for our charity. If we hadn't had access to it with Charity Bank, we quite simply wouldn't be where we are today. Without the loans we've received and the people who save with Charity Bank, the lives of disabled people in our community would be significantly poorer."
During today’s AGM, Charity Bank also voted in a new Chair of the Board. Alan Hodson will take on the role from George Blunden who steps down after a successful nine-year tenure. Alan is an experienced financier having worked at UBS Investment Bank, but also brings skills from his experience within the charity sector including roles with Great Ormond Street Hospital Children's Charity and The Roundhouse Trust.
Alan Hodson, incoming chair at Charity Bank comments, “I am highly motivated by the work Charity Bank does, matching savers who want to use their money to do good, with impact-led organisations who need finance. I am excited to take the bank forward to the next stage, bringing my experience from both the commercial and charity sectors to support the Board as they look to the future and expanding the work of Charity Bank. I also extend my thanks to George for all of his hard work in the development of Charity Bank over the last decade - charities, social enterprises and the people they support from across the UK have benefited greatly from his hard work and leadership.”
About the research:
Data for this press release is gathered from Charity Bank’s ongoing tracking of social and financial data and its impact survey conducted in February and March 2019. This impact survey was sent to 235 of Charity Bank’s current borrowers, with 105 completing the survey either online or via a telephone interview.
About Charity Bank
Charity Bank is the loans and savings bank for people who want to make the world a better place. We use our savers’ money to provide much needed loans to charities and social enterprises working to create lasting social change across the UK. Charity Bank is a bank run for social purpose organisations, owned by social purpose organisations. It aims to provide the finance needed to drive positive social change – bringing benefits for people, communities and the environment.