Civil Society – Social Investment
This theme is now closed for comment. An announcement on Red Tape Challenge plans will be made in due course. You can read comments made during the theme spotlight (17 May 2012 – 13 September 2012) below.
Social ventures – such as charities, social enterprises and community organisations – all share a passion for finding innovative solutions to social problems. They rely on donations and grants as a source of revenue and income. Social investment allows charitable trusts, foundations, and institutional and private investors to support social ventures. Like any normal investment it provides investors with an opportunity to grow their money, but on top of that, they can feel good about knowing they are making a real contribution to a better, stronger, society.
However, uncertainty about the legality and tax treatment of investing in social ventures can be a significant barrier to these types of investment. Almost all the relevant law and regulation predates the emergence of the social investment market, leaving those looking to invest, and those seeking investment, unclear about where they stand.
Greater clarity is needed to drive forward social investment and we’re interested in your thoughts about how this could be achieved:
- Have you tried to invest in a social venture, if so what were the legal and regulatory barriers that you came across, and how do you think that they should be dealt with?
- Have you tried to access social investment, if so, what were the legal and regulatory issues that you faced, and how do you think they should be dealt with?
- Should current regulations be amended to give express permission in law that allows trusts, foundations and institutional investors to invest in social ventures?
‘Ten Reforms to Grow the Social Investment Market’
Our sector champions for social investment, BWB, have published a paper called ‘Ten Reforms to Grow the Social Investment Market’ that calls on government to make 10 key changes to the regulatory environment in order to make social investment easier. Click here to see the ten recommendations and make comment. You can also download the full document from that page.