BIG calls for social investment bids for dormant £5 million
22 Jun 2011 10:00 AM
BIG Fund, the non-Lottery funding operation of the Big Lottery Fund (BIG), yesterday launched its call for proposals from social investment intermediary organisations that want to increase their capability with a share of £5 million from dormant bank accounts.
The £5million Big Society Investment Fund will invest funds from dormant bank accounts in England into social investment intermediaries while the Big Society Bank is being set up. Delivered by the BIG Fund, the Fund will help build a dynamic social investment market that provides robust financial products to better support frontline social sector organisations.
This follows directions from Government for BIG to establish an Investment Committee to use dormant account money to start making investments from this summer. The Investment Committee is an interim body that will be wound up once the Big Society Bank has become fully operational following State Aid approval from the European Commission and Financial Services Authority authorisation.
The Fund is looking to support a portfolio of around five proposals from social investment intermediary organisations. An Investment Committee chaired by John Kingston of CAF Venturesome and comprising Sir Ronald Cohen and Nick O’Donohue, Independent Advisers to Government on the Big Society Bank, Nat Sloane and Anna Southall of BIG and Dawn Austwick of Esmee Fairbairn, will make the decisions on where the funds are invested.
John Kingston, Director of CAF Venturesome and chair of the Investment Committee said: “We want this Fund to begin the process of building the diversity and resilience of the social investment marketby investing in well managed, ambitious and financiallysound social investment intermediaries. By doing this, we want to help charities and social enterprisesaccess capital so they canwork more effectivelyin our communities and together address the needsof our society”
Nat Sloane, Chair of the BIG’s England Committee said: “A social investment market has begun to develop in the UK, with social investment intermediary organisations seeking to match the supply of finance with the financial needs of the social sector. Through this fund we want to help this market to flourish and grow.
“We want to hear from organisations with either a proven track record in providing social investment products and services or with credible plans to acquire the skills and expertise necessary to build, strengthen and increase the diversity of the social investment market and address social need.”
To build the momentum, the Fund is looking to make investments at its meetings from summer 2011, with organisations needing to get their applications in by Monday 4 July 2011.
The Investment Committee will be wound up once the Big Society Bank has been fully established and is in a position to start using dormant account money. The Investment Committee investment portfolio will be transferred to the Big Society Bank at that point. The Big Society Bank will become fully operational following State Aid approval and Financial Services Authority authorisation. It will act as a wholesale investor for social investment and champion the sector to the public, stakeholders and investors. It will invest capital in intermediaries so that they are able to invest in frontline organisations. It will not make grants. It will also invest in developing a powerful infrastructure for the social investment sector.
For information on applying to Big Society Investment Fund visit: The Big Society Investment Fund
For more information on the establishment of the Big Society Bank visit the cabinet office website: www.cabinetoffice.gov.uk/content/big-society-bank
Further Information
Big Lottery Fund Press Office: 020 7211 1888
Out of hours contact: 07867 500 572
Public Enquiries Line: 08454 102030
Textphone: 0845 6021 659
Full details of the Big Lottery Fund programmes and grant awards are available on the website: www.biglotteryfund.org.uk
Notes to Editors
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The Big Fund is the non-Lottery funding operation of the Big Lottery Fund.
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The Big Lottery Fund (BIG), the largest distributor of National Lottery good cause funding, is responsible for giving out 46% of the money raised for good causes by the National Lottery.
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It also uses its expertise in grant-giving to distribute non-Lottery funding. BIG has been appointed to distribute £5 million of dormant accounts funding through the Big Society Investment Fund
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For more information on the Big Society Bank visit the Cabinet Office website www.cabinetoffice.gov.uk/content/big-society-bank
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BIG is committed to bringing real improvements to communities and the lives of people most in need and has been rolling out grants to health, education, environment and charitable causes across the UK since June 2004. The Fund was formally established by Parliament on 1 December 2006.