29 March 2012
The Charities Aid Foundation (CAF) and Legal & General are
to launch a pioneering new social investment scheme designed to
bring together large businesses and hundreds of local communities.
If successful, thousands of people across the UK will benefit.
The scheme, which has the potential to leverage millions of
pounds of social investment, gets the green light thanks to £65,000
in funding secured from NESTA’s Innovation in Giving Fund –
announced today (March 29).
The scheme will help to transform local communities by providing
funding for hundreds of social enterprises UK wide over a five year
period. These social enterprises will help to tackle social issues
in local areas while boosting the local economy; the scheme has the
potential to help thousands of people.
CAF and Legal & General have developed an innovative local
social investment model in which large businesses effectively link
themselves and their employees to local social enterprises. The
scheme brings together employee mentoring, a £10,000 interest free
loan and expert advice for social enterprises.
The goal of the programme is two fold. Firstly, to help social
entrepreneurs to access a new form of non-banking finance while
also having practical support to help them grow towards a
sustainable future. And second, to fully engage companies and
employees with local communities.
This pilot is to be run in Brighton and Hove. If
successful, the model will then be replicated in cities across the
UK, encouraging local companies to invest time and money to support
this important sector of the economy.
Chief Executive, of the Charities Aid Foundation, John Low,
says: “This model has the potential to fill a funding and support
gap for social enterprises that has existed in the UK for too long.
I greatly value the partnership that CAF and Legal & General
have developed and believe that this model could grow and leverage
millions of pounds of social investment across the UK. This would
help breathe life into hundreds of local community projects.”
Head of Corporate and Social Responsibility at Legal &
General, Graham Precey says: “We’re very excited to be part of such
a pioneering project. We see the real need for companies in major
cities who do not currently trade with social enterprises through
their supply chains to take a serious look at the sector to see how
you actively contribute to an increasingly important part of the
local economic landscape. We also hope that by involving employees
in mentoring of local social entrepreneurs we will connect local
employees with local social enterprises working within these
communities as consumers.”
Legal & General employs 2,000 people in Brighton and
Hove. Applications from social enterprises interested in taking
part in the scheme will be invited in Summer 2012.
For more information please contact the CAF Media team or
Mike Connell at Legal and General by telephone on 01737 375365 or