SITR raises £3.4m in first two years
Melanie May | 13 July 2016 | News
Charities and social enterprises have received £3.4m in the past two years as a result of Social Investment Tax Relief (SITR).
SITR offers individual investors a 30% income tax relief on loans or equity investments made to charities and social enterprises. Research conducted by think tank NPC for Big Society Capital reveals that 30 projects have raised investment using SITR deals since April 2014, predominantly helping organisations with revenues of under £500,000 a year.
On average these investments have raised capital of £100,000 for charitable causes, including education, homelessness, heritage work and work in local communities.
The market has predominantly boosted organisations outside of London, with activity having focused on Scotland (a third of all projects) and the South West (one in five). More than 170 investors have invested into SITR deals, significantly high net-worth individuals and angels, and an increasing number of retail investors are using SITR with £230 the average investment size.
South Bristol Sports Centre is one of the most recent social enterprises to benefit from the tax break, having received £250,000 from the Resonance Bristol SITR Fund. The centre works with young people in one of the most deprived areas in Bristol and is using the investment to finance the construction of six five-a-side football pitches.
Simon Rowell, interim head of strategy and market development at Big Society Capital said:
“It’s encouraging to find that smaller charities and social enterprises have been able to navigate the tax relief rules and are already finding SITR to be a useful new tool to help them grow. The affordability of SITR products is highly promising. There are now big opportunities for investors to follow the early leaders and use their investment account to support charities social enterprises they believe in.”
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.