# Government wants to make social investment part of the ‘mainstream’ funding environment

- Link: https://fundraising.co.uk/2014/06/23/government-wants-make-social-investment-part-mainstream/
- Published: 2014-06-23T23:01:26+01:00
- Author: Howard Lake

A fund aimed at making organisations “investment ready” for social ventures has 
been established by the Government as part of its new strategy to make social investment
part of the “mainstream” of voluntary sector funding.

Announced last week, the new £60m fund will support social ventures that have high
potential but “struggle to access finance”.

Funded through loan repayments to the Futurebuilders Fund, the new fund will be 
based on the Cabinet Office’s £10m investment for [Contract Readiness Fund. ](http://www.beinvestmentready.org.uk/)

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The new fund was announced in the government’s 2014 [progress report on growing the social investment market](https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/321483/2014_Social_Investment_Strategy.pdf),
which outlines its news strategy to support social investment.

“We know that more needs to be done to help… investment reach the frontline,” Nick
Hurd, the minister for civil society, says in the report. “One of the key strands
of our strategy for the next year will be Government playing its part by securing
funds for investment [readiness support](https://www.curriculosolutions.com/how-do-we-empower-you)
over the next decade.

“Over the past five years we have seen vision turn to reality. The aim of the next
year is to turn reality to mainstream.”

Other proposals in the strategy include:

 [list type=”check”]

 * Pilot a guarantee fund to support crowdfunded social investment alongside an 
   evaluation study to into the effectiveness of credit enhancements in the social
   sector
 * Re-assess [financial promotion rules](http://www.fca.org.uk/firms/being-regulated/financial-promotions/financial-promotion-faq%20)
   as they currently apply to social investments
 * Explore how institutional investors – particularly pension and insurance funds–
   can more easily participate in social investment
 * Enlarge the [Social Investment Tax Relief Scheme](https://www.gov.uk/government/publications/social-investment-tax-relief-factsheet)
   by seeking state aid clearance of a larger scheme, consulting on options for 
   indirect investment and accrediting social impact bonds.
 * Open up new markets through awareness and marketing campaigns and events to promote
   the effectiveness of social investment.

 [/list]

 * **[Why fundraisers shouldn’t fear social investment](https://fundraising.co.uk/2015/05/13/why-fundraisers-shouldnt-fear-social-investment/)**(
   13 May 2015)
 * **[Charitable bonds investment to fund new homes in Scotland](https://fundraising.co.uk/2016/03/21/charitable-bonds-investment-fund-new-homes-scotland/)**(
   21 March 2016)
 * **[UK social investment worth £1.5 billion](https://fundraising.co.uk/2016/03/22/uk-social-investment-worth-1-5bn/)**(
   22 March 2016)

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