Charity Bank has grown its loan book by an average of 28% over each of the past four years and this new investment will be used to meet its objective of doubling its lending to charities and social enterprises by 2024 and extending its offering to smaller organisations.
According to Charity Bank’s State of the Sector report, released last month, nearly nine in ten charities and social enterprises expect demand to grow over the next two years, while 82% think it’s going to be difficult to sustain donations over that period. Of the Charity Bank borrowers that took part in its recent social impact study 78% say their project would not have gone ahead without the loan, and 30% said that the financing helped to keep their organisation afloat.
Caroline Mason CBE, CEO of Esmée Fairbairn Foundation commented:
“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.”
Further information about the work of Charity Bank and how it invests in charities and social enterprises can be found on its website.