Charities & social enterprises
For eligible social enterprises, charities and community businesses, SITR can be used to raise patient and flexible capital to support your trading activities. Find out if you're eligible and how it works.
Professional advisers
If you're an adviser to charities and social enterprises, SITR may enable the organisations you work with to raise investment in a more cost-effective way. Find information & resources to help you support them.
Investors
SITR enables more people to invest in line with their values. Individual investors can receive a 30% tax break on SITR investments. Find out how it works and how it compares to other tax reliefs.
What type of capital can SITR raise?
Unsecured
loan or equity
Flexible
Negotiate terms acceptable with your investors
Patient
Window of 3 years and 1 day before repayments start on the capital borrowed
Risk is offset
Cost of finance subsidised with a 30% tax relief for investors
Case Studies
Wellington Orbit
Duration
5 years
Cost of capital
2.25%
Turnover
£18,000 (in first year)
Amount
£75,000
Product
Loan & community shares / Direct
The Freedom Bakery
Duration
4 years
Cost of capital
1.75%
Turnover
£210,000
Amount
£48,000
Product
Loan / Direct
Aspire Gloucestershire
Duration
3 years
Cost of capital
7%
Turnover
£500,000
Amount
£50,000
Product
Social Impact Bond / Direct via advisers
BS3 Community
Duration
6 years
Cost of capital
4%
Turnover
£1,079,000
Amount
£560,000
Product
Social Impact Bond / Crowdfunding
Our Power
Duration
3 years (min)
Cost of capital
6.5%
Amount
£1,460,000
Product
Loan / Crowdfunding
Portpatrick Harbour
Duration
5 years
Cost of capital
1.5%
Turnover
£26,000 (approx)
Amount
£100,000
Product
Equity / Direct
Burley Gate Community Shop
Duration
4 years for loans
Cost of capital
Between 2-3%
Turnover
£80,000
Amount
£57,000
Product
Loan / Direct
The Spotted Cow
Duration
3 years (min)
Cost of capital
3%
Turnover
£100,000
Amount
£277,000
Product
Equity / Crowdfunding
Ambition East Midlands
Duration
3 years
Cost of capital
7%
Turnover
£1 million +
Amount
£100,000
Product
Social Impact Bond / Direct via advisers
FC United of Manchester
Duration
4 years
Cost of capital
2% (optional)
Turnover
£1 million +
Amount
£270,000
Product
Loan / Direct
Fareshare South West
Duration
5 years
Cost of capital
5% for first 36 months, 7% for remaining 24 months
Turnover
£400,000 +
Amount
£70,000
Product
Loan / Fund
Action needed now to extend Social Investment Tax Relief so it remains a valuable tool at this critical time
Social enterprises and charities are on the frontline responding to COVID-19 and they will be on the frontline to building back better in the aftermath. It's clear that far greater flows of private capital is needed to support their valuable work.
Big Society Capital's Chair, Harvey McGrath, explains why action is needed now to extend Social Investment Tax Relief (SITR) so that it remains a valuable tool in unlocking capital for social enterprises and charities.