Scope launches £20m charitable bond

The charity Scope has today launched a new £20m charitable bond programme to generate extra funds for their charitable work.  As well as generating a financial return for investors, the bonds will generate a social return through Scope’s work.

Scope is partnering with Investing for Good to deliver the programme which is aimed at trusts, foundations, high net worth individuals and wealth managers.  This is expected to supplement their traditional fundraising activities and will be used to develop their network of charity shops and their fundraising programmes.  This will enable the charity to be put onto a surer financial footing in the longer term.

The bonds will be listed on the Euro MTF market in Luxemburg which has a history of supporting social finance and investment.  The first pledge of investment comes from Investing for Good’s Charity Bond Programme which received funding from the Big Society Finance Fund.

Scope is the first major frontline charity to enter this market and we’re interested in seeing the results – will other large charities follow suit? We hope so.

This is an exciting milestone in the UK social investment market, and is especially welcome given the Charity Commission’s new CC14 guidance which came out last week.

Charities Aid Foundation Chief Executive John Low was interviewed on BBC Breakfast this morning discussing this new pilot and you can see it again on their website.