Crowdfunding platforms for charities and social enterprise
Big Society Capital partners with crowdfunding platforms in new match fund
Written by Matt Ritchie (original article)
Big Society Capital has partnered with three crowdfunding platforms in a £10m crowd match fund to allow the public to invest directly in charities and social enterprises.
Crowdfunder, Ethex and ThinCats (through Community Chest) will help connect people directly with causes by listing social sector organisations who want to raise debt and equity finance.
The fund will see Big Society Capital match crowdfunded investments made by individuals into Social Investment Tax Relief (SITR) eligible charities and social enterprises.
Announcing the initiative, the partners said the fund will be the first of its kind to match different investments made by the public across the social sector. Private investors will qualify for a 30 per cent tax break through SITR.
Big Society Capital investment associate Ben Warren said the fund represents a “totally new approach” for social investment and crowdfunding.
“We hope that this initiative will help charities and social enterprises to find new routes to investment which could offer better value and engagement from their local community. We know that donation-based crowdfunding was the fastest growing model of alternative finance in 2015, and we are excited about the potential for this fund to create similar momentum in the social investment sector.”