Funding news

Big Society Capital launched - 4 April 2012

The Prime Minister has officially launched the £600m social investment wholesaler, Big Society Capital, stating that he hoped it would help charities to grow in scale.

Big Society Capital is a wholesaler which will lend to social intermediaries who will go on to lend to social enterprises and charities. It will aim to achieve a 4–5 per cent return on its investments.

Cameron said he was supportive of the prospect of more payment-by-results funding for the charity sector, including more investments using social impact bonds. The sector would find it easier to raise capital for payment-by-results contracts, he said.

"While direct grants from government may be going down, the money available is going up," he said.

The move has caused some concern about the possibility of smaller charities being priced out. However, many have also welcomed the launch.

For more information, see the Third Sector and Civil Society articles.