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Ways to raise investment using Social Investment Tax Relief (SITR)

Eligible social enterprises and charities can raise SITR investment using three different methods: through a specialist SITR fund, via a platform or through a direct deal with individual investors. On this page, you can find more information about each of these methods.

SITR investment can be in the form of an unsecured loan, equity or via a Social Impact Bond (SIB). Which method can be used to raise investment will depend on the type of investment being looked for.

  • Unsecured loan investment can be raised from an SITR fund, via a relevant platform or through a direct deal.
  • Equity investment in the form of community shares can be raised via a relevant platform or through a direct deal.
  • A Social Impact Bond is a payment-by-results contract between an organisation to deliver a service, the commissioner (for instance, a local authority) and the investors. This can be done via a SITR fund or through a direct deal.

Below, you can find more information on raising investment through: a SITR fund; a crowdfunding platform; and through a direct deal. 


Three ways to raise SITR investment

3 ways to raise SITR investment: Fund, Platform or Direct


SITR FUNDS

SITR funds are suitable for loan investments or a Social Impact Bond. Like other social impact funds, an SITR fund is managed by a social impact investor.

The fund manager will manage investments into social enterprises and charities eligible for SITR. For those organisations who receive investment through an SITR fund, the fund manager will support them through the process including applying for advance assurance.

Below are a list of available SITR funds:

CROWDFUNDING OR PEER-TO-PEER PLATFORM

SITR investment (loans or equity) can raised with the support of a crowdfunding or peer-to-peer platform.

Below are a list of available platforms that you can use to raise SITR investment:

Additional support:

Direct / DIY

A direct deal essentially means you identify the lenders without the support of an investment intermediary (although you may well engage the support of another sort of professional service such as a lawyer, wealth manager or financial adviser).

Read the Social Entrepreneurs Guide to DIY Social Investment.


ADDITIONAL RESOURCES

  • Hear from a Peer on SITR: webinar featuring three social enterprises sharing their experiences of raising investment using SITR via a SITR fund, crowdfunding platform and through a direct deal
  • Ask an Expert: webinar featuring three experts offering their advice and top tips to raise investment using SITR.