Charities (Protection and Social Investment) Bill

Written evidence submitted by the City of London Corporation in Relation to Social Investment (CHB 11)

1. The City’s interest in the Bill’s proposals regarding social investment derive from the position of the City’s charity, the City Bridge Trust (CBT), as London’s largest grant-giving charity, supplying grants worth more than £15 million each year. CBT is the grant-giving body of the City’s City Bridge Trust. The main aims of CBT are to promote fairness, inclusion and independence for those living in London. Activities range from supporting survivors of domestic and sexual violence through to work with people who have mental health problems. In addition to CBT’s annual giving, two years’ ago the City designated £20 million for investment in activities generating social benefit and positive financial returns.

2. The City actively supports the sector in general and, for example in relation to the Financial Promotions Order, has promoted moves to increase the opportunities for social investment.

3. Historically, charities have resiled from making social investments because they have feared that they are not allowed to accept a discount on financial returns in circumstances where, for example, an investment would promote a charity’s objectives but produce less than commercial financial returns. This approach has hampered and continues to constrain the growth of the social investment market and London’s position as a hub for social investment innovation.

4. As part of its support for the sector, the City welcomes the Bill’s proposals to provide greater clarity regarding charities’ powers to invest in ways that seek to achieve both charitable purposes and a financial benefit.

City Remembrancer’s Office

December 2015

 

Prepared 4th January 2016