Joseph Rowntree Foundation Social Investment

Joseph Rowntree Foundation Social Investment is sponsored by Joseph Rowntree Foundation. The Joseph Rowntree Foundation provides flexible repayable finance (social investment) to support charities and social enterprises that align with its vision for a poverty-free future, focusing on models that drive structural change in areas such as climate justice, wealth, powe…

Social investment | Joseph Rowntree Foundation Our social investment is flexible repayable finance that supports charities and social enterprises aligning with our vision for a poverty-free future. Our flexible repayable finance helps charities and social enterprises achieve their mission and increase their impact.

Why we make social investments Since 2015, around 5% (currently set at £25 million) of JRF’s endowment has been allocated to social investment. Our social investments are a mix of: direct investments (from JRF to charities and social enterprises) indirect fund investments (from JRF to fund managers, who then invest in charities and social enterprises).

Through these investments, we support organisations that further JRF’s overarching mission to speed up and support the transition to a future free from poverty, in which people and planet can flourish.

Within the wider range of social justice topics on which JRF engages, our current focus for social investment is on models that drive structural change in the following areas: wealth, power and funding systems For more background on our social investment programme, including how lessons of experience shape our current plans, you can read our reflections and lessons learned so far .

Apply for social investment If you have any questions about social investment at JRF, please contact the team at socialinvestment@jrf. org. uk .

You can also discover more about the process, timelines and eligibility criteria for applying for social investment.

How to apply for social investment How our social investments align with JRF’s work In line with JRF’s focus on specific directional change, we have advocated and promoted the real Living Wage within the social investment sector , resulting in an extension of the Living Wage Funder accreditation to include social investors.

To contribute to systemic change, we have funded organisations creating deeper, more foundational shifts needed for a more equitable and just future. This includes our investments in BelleVie and the Resolution Foundation’s Workertech Partnership . We also recognise the need to build much-needed infrastructure for change in the social investment sector, and we hence have funded Pathway Fund and Resonance Community Developers .

Alongside meaningful social impact, social investments are also expected to deliver a modest financial return with the minimum expectation that money can be returned so that it can be invested again. However, the overriding purpose of the investment is to contribute towards the achievement of JRF’s vision and mission.

Social investment case studies Driving racial equity in social investment Pathway Fund uses social investment to support their work giving Black and Ethnically Minoritised-led organisations better access to finance so they can make greater social impact.

Deep poverty and destitution Growing a model to solve shortage of temporary housing Social investment helped Resonance to build on the success of the National Homelessness Property Fund 1 and its pilot programme, to provide an effective solution to homelessness. Helping people access the benefits and support they need Social investment enabled Lightning Reach to help more people access benefits and discretionary support schemes.

Providing affordable, ethical credit to purchase essential goods Social investment helped Fair for You give low-income households affordable credit for white goods, furniture and other essentials. Investing in a model that values our carers Social investment is helping BelleVie's model of home care services empower more care workers to provide outstanding support across the UK.

Social investment and innovation tackling the poverty premium People in poverty or on low incomes pay more for the same goods and services than people who are better off financially; the Fair By Design fund aims to address this. Our current social investments We have invested a total of £3,525,000 in housing-related projects.

National Homelessness Property Fund £44 million national fund to buy property to house people at risk of homelessness, supported by St Mungo’s and Developing Health and Independence. £500,000 (limited partnership stake) London Community Land Trust £450,000 of development funds for affordable homes in London. £100,000 (community shares) £88 million fund focused on affordable housing.

£500,000 (limited partnership stake) Hartlepool Housing Heroes Funding to purchase and renovate a house for care leavers. Social and Sustainable Housing £64 million fund providing flexible loans to charities for property purchase to house people experiencing poverty. £1,000,000 (limited partnership stake) Loan to fund safe housing for LGBTQI refugees and people seeking asylum in the UK.

London Rebuilding Society Funding to help older homeowners refurbish homes so they can live longer and better in their own homes. £29 million fund to buy property to provide safe, secure and affordable homes for women and children at risk of homelessness. £300,000 (limited partnership stake) We have invested a total of £2,907,010 in projects to improve employment outcomes.

Organise Funding to grow an online platform that helps workers take collective action to improve their working conditions. £200,000 (equity) Glasgow Together £2 million charity bond to purchase and renovate property, providing jobs for people previously incarcerated. Growth capital to expand flexible working consultancy.

Supporting access to licensing or training for refugees in the UK. £6. 75 million fund backing startups using technology to improve the lives of people working in sectors where they experiencing low pay and insecure employment.

£1,000,000 (limited partnership stake) Scaling high-quality care model that provides good jobs and good care. London Early Years Foundation £1. 5 million charity bond to fund affordable early years education in London.

Training bootcamps and employment support for life-changing careers. Neighbourhoods and communities We have invested a total of £2,317,000 into projects focused on local neighbourhoods and communities. Ethex democratises access to savings and investment opportunities by enabling people, through crowdfunding, to save and invest in projects and organisations with social or environmental missions, including community energy projects.

Equally, Ethex enables these organisations to access affordable flexible finance. Fair Tax Foundation's mission is to see businesses everywhere make a fair tax contribution and to recognise and celebrate responsible enterprises leading the way through its Fair Tax Mark accreditation scheme. £3 million bond to develop YMCA Community & Activity Village in Newark to tackle social and health problems and create jobs.

Supporting Library of Things to scale their network of sharing libraries across the rest of the UK and in Europe. Resonance Community Developers Ltd Fund enabling community ownership through provision of pre-development investment and advice. £1,000,000 (preference share in RCD Ltd) We have invested a total of £1,880,000 into widening access to financial services and support.

Subordinated debt to strengthen capital base of Yorkshire credit union. Loans for white goods and household items as alternative to high-cost credit. £500,000 (perpetual bond) Support for microlending in London.

Funding to expand North East-based micro-lender nationwide. Great Western Credit Union Long-term funds to grow savings and loans services in underserved areas. Support to grow online portal connecting vulnerable people to financial support.

Multi-themed social impact funds We have invested a total of £6,120,000 into funds supporting diverse social enterprises. North East Social Investment Fund £10 million fund investing in charities and social enterprises in the North East. £500,000 (limited partnership stake) £24 million fund supporting growth of social enterprises nationally.

£500,000 (limited partnership stake) Bridges Inclusive Growth Fund £81. 5 million fund for long-term investments in mission-led organisations. £500,000 (limited partnership stake) Managed account investing in social businesses tackling poverty in the UK.

£500,000 (managed account) £15 million fund investing in solutions addressing the poverty premium. £3,000,000 (limited partnership stake) Around £10 million fund investing in early-stage organisations tackling inequality in the UK. £250,000 (limited partnership stake) Funding for pilot programmes focused on racial equity in social investment.

£120,000 (repayable grant) Key Fund – Northern Impact Fund II Fund supporting organisations in the North and Midlands to grow trading activity with blended grant and loan. £20 million fund investing in tech solutions to the cost-of-living crisis.

£250,000 (limited partnership stake) JRF supports the view that effective management of environmental, social and governance (ESG) issues by companies we invest in is a necessary part of achieving good financial performance and long-term growth. It is JRF’s view that companies that fail to effectively manage good governance and social and environmental risks can incur higher operating costs and loss of consumer and investor confidence.

This can impact negatively on shareholder value. JRF therefore seeks to incorporate ESG issues fully in its investment activities and be an active owner.

It does this by: including an assessment of the approach to responsible investment in the selection of fund managers and subsequent monitoring and review of their performance encouraging fund managers to integrate ESG issues into their investment analysis and decision-making processes requiring fund managers to comply with JRF’s ethical investment policy — JRF does not invest in stocks and shares in companies which are significantly associated with the manufacture of armaments, tobacco, brewing and gambling.

‘Significant’ is defined as 10% of either profits or turnover JRF applies a pragmatic approach to this ethical exclusion and accepts that the exclusion does not extend to collective investment instruments operated by fund managers authorising fund managers to exercise the vote with JRF shares in accordance with agreed policies, but subject to an override by JRF in circumstances where there would be a conflict with JRF’s charitable objectives — actual votes cast and related engagement are monitored on a quarterly basis by the Investment Sub-Committee within available resources, engage with companies on ESG issues, and also those issues which are directly relevant to the strategic priorities and work of JRF, this engagement may be direct or via fund managers, it may also be undertaken collectively in partnership with other investors.

The fund managers are expected to contact JRF if they are considering an investment in a company which may engage in activities which are in contradiction of JRF’s strategic priorities or its charitable objectives. JRF may initiate shareholder resolutions, but this will only be with the approval of the full trustee body.

Decisions on active participation in shareholder resolutions instigated by others will be the responsibility of the Chief Executive. JRF’s responsible investment policy will be reviewed on an annual basis by the Investment Sub-Committee. Within available resources, JRF will report annually on responsible investment issues.

Head of Social Investment Social Investment Portfolio Manager Follow Harmony on LinkedIn Social Investment Portfolio Manager jessica. harneyford@jrf. org.

uk Follow Jessica on LinkedIn Social Investment Portfolio Manager Portfolio Operations Manager dominika. kubalamartin@jrf. org.

uk Follow Dominika on LinkedIn