In the past, charity finance focused on two main forms of funding: grants and donations. With the recent reduction in grants, the move towards more service delivery contracts and the greater level of competition for donations, charities are struggling to maintain their impact and scale of work at best. At worst, we are seeing the fall off in the financial sustainability of charities. The question is 'How will the sector evolve to maintain its 'impact' and the scope and scale of its work?' This is where social investment has a role to play. Borrowing and debt finance is part of this mix, and a potential way of funding the sector to maintain future impact. However, it is not appropriate for all charities and relies on income generation and social enterprise to pay back investment finance, but it could be a 'game-changer' for the sector. The Editors of this book look at all facets of social investment and help readers to understand the complexity of different issues. They provide comprehensive technical knowledge, a diagnostic tool to consider an organisation's state of readiness for social investment and present case studies to take the reader on a journey around all aspects of this subject. They will also explore the culture issues at the heart of current debate around social investment. Peter Palmer, Paul Grant and Mark Salway will help you understand how a small amount of borrowing, or a different business model focused away from grants and donations, could be transformational for the non-profit sector.
Paul Palmer is Professor of Voluntary Sector Management and Associate Dean for Ethics, Sustainability and Engagement at Cass Business School, City University, London. Dr Peter Grant is currently a Lecturer in Voluntary Sector Management at Cass Business School, City University, London.