The scope for social investment in the youth sector

As the dust settles from the riots, society is left to debate the causes of the violence with social exclusion, dysfunctional families, poor policing, the spending cuts are all being blamed by commentators and the media at large.

In the midst of it all, one thing is certain: a number of young people were involved in the violence and criminal activity.  Many commentators have pointed to charities and social enterprises as part of the ‘solution’, but how can youth sector organisations strengthen or indeed scale up their activities in the current climate of cuts and increased competition for funding?

The Young Foundation has released a timely report ‘Growing interest?’ that maps the market for social investment in the youth sector.  Key findings reveal the good news that supply of social finance is adequate and that there is appetite amongst investors for supporting the youth sector. Key challenges being the capability, confidence and capacity of such organisations to take on investment.  Whilst 10% of the 97 organisations surveyed deem themselves ready for social investment, 20% expect to receive up to 5% of their income from social investment in the next three years (totalling £5 million).

The report concludes that for social investment to work in the youth sector, voluntary and community organisations will need to be able to provide evidence of their social impact, collaborate with each other, and adopt business models that generate sustained income. 

Some organisations are already working in this way, and CAF Venturesome has been investing in youth sector organisations for the last 10 years.  To date Venturesome has offered over £4.2 million to 65 charities that work directly with young people, representing nearly a quarter of our entire portfolio.  Read an example of how Venturesome helped the disabled childrens charity KIDS with a loan here.    

If you work for a youth charity and are interested in learning more about how a loan from Venturesome could help, please do get in touch on 03000 123 300 or visit our website www.venturesome.org for more information.