The Government plans to introduce an endowment fund of £100 million to help charities and social enterprises attract social investment and compete successfully for public service contracts.
The government has announced that up to £60 million of the £100 million fund will come from the repayment of loans made by the Futurebuilders fund which was established by the Labour government and which is no longer in operation.
The balance of the new fund is likely to come from contributions from the Big Lottery Fund and from Big Society Capital. While this has been decided in principle, the proportion of the remaining £40 million that each would contribute has not been settled formally.
The Big Lottery Fund announced that it has been working with the Cabinet Office and Big Society Capital to improve support for small organisations wishing to take up social investment opportunities.
The Minister for Civil Society, Rob Wilson, has said that this new fund is part of a series of flexible finance and support options that he is trying to put in place for the benefit of organisations of different sizes and types that require help.
Formal decisions on the endowment fund are said to be expected in early 2015.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
