What is Social Investment?
Social investment is a way of using money to create both a positive social impact and a financial return. It’s different from regular loans because it focuses on helping society while still expecting the money to be paid back.
At CAF (Charities Aid Foundation), we provide loans to charities and social enterprises using funds donated by generous supporters. Once these loans are repaid, we recycle that money by lending it again to new organisations in need. This process allows a single pool of money to support multiple causes over time, creating a powerful ripple effect.
As these loans are paid back, we re-lend the same money to other eligible groups looking for affordable and flexible financing. This recycling model helps the funds go even further, supporting many different social projects and boosting their long-term impact.
CAF’s Role in Social Investment
One of the UK’s Social Investment Pioneers
We have been actively involved in social investment since 2002, making us one of the earliest and most experienced organisations in this space within the UK. Over the years, we’ve built a strong track record and have become one of the leading providers of social finance.
Backed by a Skilled and Supportive Team
Our team is made up of professionals with wide-ranging expertise in social finance. They are here to support your organisation by helping you assess your strengths, plan your impact, and prepare for sustainable long-term growth.
Over £65 Million Invested So Far
Since we began, we have lent more than £65 million to over 500 charities, social enterprises, and community-led groups. Each of these organisations has used the funds to grow their services and improve lives in their communities.
Always Accepting Applications
Our Venturesome Impact Fund is always open for applications. It’s open to organisations all across the UK and even those involved in international work. We welcome charities, social enterprises, and community groups looking to grow their impact.
Build a Stronger Social Impact with the Venturesome Impact Fund
Our Venturesome Impact Fund is designed to provide financial support to organisations that are committed to making a difference. Whether you’re a charity, a social business, or a local community initiative, we aim to help you thrive.
We especially focus on groups that may struggle to access traditional bank loans. Our mission is to ensure that all purpose-driven organisations can get the financing they need to increase their positive impact and build financial strength.
Types of Loans We Offer
Most of the loans we provide are unsecured, meaning you don’t have to offer property or other assets as security. This is helpful for organisations that lack valuable assets but still have solid plans and impact potential.
In certain cases, we also provide blended finance packages, which combine loans with small grants. These are particularly useful for smaller organisations facing tough financial circumstances and needing a more flexible funding solution.
Why Consider Social Investment?
Here are some key reasons why social investment might be the right choice for your organisation:
- Flexible and Affordable Repayment Terms: Use the money to manage your cash flow, grow your services, or build your team.
- No Usage Restrictions: Unlike grants, which often have strict rules on how the money can be spent, social investment gives you the freedom to decide where the funds are most needed.
- No Need for Assets as Collateral: Unlike many banks, we don’t require property or other valuable items to back the loan.
- Your Repayments Support Others: When you repay your loan, that money is re-used to help other organisations. So you’re part of a bigger movement for good.
- Boost Your Income Sources: Social investment helps you rely less on donations or grants by creating more sustainable ways to generate income.
- Improve Your Operations: Getting ready for social investment often helps organisations strengthen how they operate—bringing more structure, accountability, and strategic focus.
“CAF’s support through social investment has been essential in keeping us strong and sustainable. Thanks to them, we’ve reached over 40,000 people in some of Birmingham’s most isolated communities,” said one of the many organisations we’ve supported.
New to Loans and Repayable Finance?
If you’ve never taken a loan before, don’t worry—we’ve created a Repayable Finance Guide to help you understand everything you need to know. It explains when it’s a good idea to borrow, what to expect from lenders, and how your organisation can use loans effectively and responsibly.
CAF’s social investment support is here to help charities, social enterprises, and community groups grow stronger, make a bigger difference, and become more financially resilient—all while recycling the same funds to keep supporting others.
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