Social Impact Investment is experiencing rapid growth as an innovative model to produce social return on investment, it provides new and exciting ways for individuals and organisations to invest in social impact, enhances CSR, provides tax incentives and encourages community involvement.
To support the growth of social enterprise and social value commissioning the Government has initiated and progressed social impact investing which is defined as an investment in the shares or loan capital of companies and charities that not only measure and report their wider impact on society, but also hold themselves accountable for delivering and increasing positive impact.
Government is working closely with the finance industry to grow a culture of social impact investing in the UK, enabling individuals and institutional investors to invest in line with their social values. Government also plays a key role in creating co-investment opportunities for a variety of private, public, philanthropic and social investors who want their investments to have a social impact. This means that public funds are complemented by additional repayable finance from private investors.
This additional funding enables public sector funding to go further, and therefore increase its impact. Recommendations from the Social Impact Investment Taskforce underpinned the introduction of Social Investment Tax Relief (SITR), the development of the Social Impact Bond and the Big Society Capital fund.
The development of health social enterprise over the last 10 years has made substantial impact on the way in which services are delivered with many types of social enterprises providing services and activities that improve health and social care outcomes.
Periods of austerity have forced the Government to look at more innovative ways to commission the provision of health and social care, adopting new processes and systems for social return on investment and in many cases launching ‘payment on success’ models which rely on new third sector, corporate and private partnerships.
In response the Government has developed a programme of social investment models which support social enterprises to generate capital investment so that they are better placed to win and deliver public service contracts.
Support with Impact Investing (active Corporate Social Responsibility).
Development of Social Value Supplier Chains to encourage the creation of Social Value.
Support to account for Social Value.
Support with Social Value Commissioning.
Development of Social Impact Bonds which bring together Industry, Public Services and Social Enterprises to improve health outcomes.