Demystifying Social Finance and Social Investment

Mark Salway FCA is a Chartered Accountant with over 20 years of finance experience in the charity sector. He has been Finance Director at several large charities, and also worked as a management consultant at both commercial and non-profit organisations – such as the UN, Age UK, the Wellcome Trust, and WSUP (Water and Sanitation for the Urban Poor) – and with the government. Mark was invited into Cass Business School, Centre for Charity Effectiveness (Cass CCE), to start its fledgling workon social investment and social finance. He led this successfully for five years. This eventually changed into focusing on financial sustainability and nonprofit business models. Mark currently runs the consulting services to charities at Moore Kingston Smith, a major UK accounting and advisory firm. He also runs several MSc modules at Cass Business School, where he is continuing his research work.

• 1. Editor’s introduction; 2. How to use this book; 3. The purpose of this section: Introducing social investment; 4. The landscape of social purpose organisations; 5. What is social investment today? Definitions, sources, and types of investment; 6. Why do charities need new funding models?; 7. How did we get here? The very fine history of social finance; 8. What do social purpose organisations and investors want from social investment? Matching supply and demand; 9. Are we ready for social investment? Re-imagining charity business and operating models and governance principles; 10. How do we begin thinking about social investment? The nine components of social investment. A model; 11. The purpose of this section: Discussing social investment; 12. The case for social investment, and how to ‘democratise’ capital; 13. It’s all about the culture?; 14. What do family offices and foundations want from social investment?; 15. Critiquing social finance: are there alternative models?; 16. Impact measurement in social investment; 17. Can social finance become sustainable?; 18. What about small charities and social investment?; 19. What does the future of social investment look like?; 20. The purpose of this section: Doing social investment; 21. Social Investment: a practical outline; 22. Finding the right funding; 23. Structuring the deal; 24. The importance of due diligence; 25. Accounting for social investment; 26. Reporting on impact, and the importance of good data management; 27. Governance aspects of social investments