15/11/11

By Andrew Holt

Philanthropists who have invested their philanthropic capital in the new CAF Social Impact Fund, launched just five months ago, have already enabled CAF Venturesome, who manage the fund, to lend over £1million to help ten charities.

Link Community Development was the most recent charity to benefit from a CAF Social Impact Fund loan.

The charity works to improve education in Sub-Saharan Africa and is funded by both DFID and the EU.

Like many charities reliant upon grants, they are vulnerable to cashflow swings as most programme funding is paid in arrears.

CAF Venturesome helped them with a £90,000 loan which will tie the charity over until their committed funding is received in full.

The CAF Social Impact Fund enables philanthropists with a CAF Trust to invest their charitable capital at 0% interest for a fixed period of between three and six years.

At the end of the term, the capital is returned to investors to either donate to charity in the traditional way, or reinvest in the Fund.

Paul Cheng, head of CAF Venturesome, said: “We are seeing strong demand from charities for loans, and thanks to the generosity of a number of CAF Trust clients we are able to quickly and effectively deploy funds to meet their financing needs.

“I would like more charities and trustees to know about the benefits of loan finance and how social investment can help them to manage both their day-to-day cashflow and secure funds for growth.

"As part of a diverse funding-mix, affordable loans can make them more financially resilient and, in a climate of economic uncertainty, help them to continue their vital work with beneficiaries.”

Home     More News


Other stories you may find of interest:

CAF improve its investment service
Following a review of its investment products and the evolving marketplace, the Following a review of its investment products and the evolving marketplace, the Charities Aid Foundation (CAF) has released details of changes to its investment portfolio for charitable organisations and CAF Trust clients. The changes, which are based on client feedback, offer greater choice and flexibility and are designed to lessen volatility while aiming to increase the potential returns on investment. CAF is partnering with Octopus Investments to deliver the new service.

KIDS CEO joins CAF Venturesome Investment Committee
Kevin Williams, chief executive of KIDS the disabled children’s charity, has been appointed to the CAF Venturesome Investment Committee. The Investment Committee is responsible for making decisions about which charities and social enterprises CAF Venturesome, the social investment arm of the Charities Aid Foundation, should offer loans to. Since its launch in 2002 CAF Venturesome has offered over £22m to over 300 charities and social enterprises. In 2007, KIDS borrowed a CAF Venturesome loan for the sum of £250,000 to help with cashflow problems while the then new Chief Executive Kevin Williams put in a place a strategy to turn around the charity’s financial situation.

CAF appoints new director of Social Investment
The Charities Aid Foundation (CAF) has appointed the chief executive of a transformational social enterprise in north Yorkshire as its new director of Social Investment. In her new role, Stephanie Sturrock will have responsibility for developing the full range of CAF’s social investment activities, including the ground-breaking CAF Venturesome and the recently launched CAF Social Impact Fund, all of which are designed to provide funding for charities, social enterprises and community groups where access to traditional finance proves difficult.