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Similar to Social Finance for the Youth Sector (20)
Social Finance for the Youth Sector
- 1. Social finance for the youth sectorA market analysisThe Young Foundation 7th June 2011
- 2. Introduction11,ooo charities that comprise VCYS are under unprecedented pressure
- 3. Income streams to March 2012 reduced by a quarter
- 4. Changes to who pays, how and what’s expected in return
- 5. Ongoing challenges to find capital to grow capacity and entrepreneurialism to respond
- 6. Interest in social finance buildingWhat is social finance?Capital investment in social impact, as well as financial return
- 7. Equity investment and loans MethodologyReport seeks to assess the youth sector market for social finance
- 8. Online survey with 97 respondents
- 9. Telephone interviews with 14 CEOs and Directors plus social investors The social finance market for the VCYS
- 10. Assessing revenue: who pays? N=53
- 11. And in the future? N=53
- 12. The challenges facing the sectorReductions in public spending on VCYS
- 13. Changing public sector commissioning approaches
- 14. Pressure on private and charitable sources of incomeThe response? Re-thinking business models
- 15. Telling a strong story about value
- 16. Creating new ways to work together How confident is the sector? N=53
- 17. Assessing capital: supply and demand Strong and growing interest in social finance
- 18. 1 in 10 VCYS organisations surveyed identified themselves as ready for social investment
- 19. 20% expect to receive up to 5% of their income from social finance in three years
- 20. Translates to up to £5 million worth of social financeProviders and types of social financeHigh street banks (RBS, Barclays etc): mainly overdraft facilities, some secured lending - but generally do not understand the charity sector
- 21. Specialist banks (mainly secured bank lending, mortgages etc): Triodos, Unity Trust, Charity Bank, Coop Bank. Social investment funds: offer semi-commercial loans and (quasi-)equity for returns: CAF Venturesome, Big Issue Invest, BridgesVentures
- 22. Venture philanthropy funds : offer capital grants with capacity-building advice: Impetus Trust, Social Business Trust, UnLtd, CAN-Breakthrough, VPF , Private Equity Foundation
- 23. Social finance advisories: Social Finance Ltd, UnLtd Ventures, and others.Three main social finance needs for the sectorStart up: finance for innovation and start ups
- 24. Scale up: finance for acquisitions and mergers
- 25. Cash flow: finance to provide working capital Is the sector ready? For the vast majority, social finance is some way away as a viable option
- 26. Four common challenges - Understanding - Capability - Capacity - Security
- 27. Conclusions Interest and openness to social finance
- 28. Existing investors only cater to a proportion of the youth sector
- 29. Social finance cannot be a ‘cure all’
- 30. VCYS organisations need support to establish new business models and demonstrate impact
- 31. Working in collaboration and consortia
- 32. Social finance needs to evolve to fit the needs of the sector Where next? Proactive support to the sector to build capacity and capability
- 33. Seek out and support innovative organisations – stronger impact but higher degrees of risk
- 34. Provision of non-financial support - understanding social finance - addressing internal capacity/capability issues - telling a strong story about impact and value - diversifying income streams
- 35. Questions…Do the findings ring true?
- 36. What does this mean for the youth sector?
- 37. What does this mean for investors?Contact Bethia McNeil [email protected] 980 6263