Social Investment Business (SIB) has today published a review of its programmes where it calls for future programmes to focus more on resilience and sustainability, and suggests ditching the term "investment readiness".
A review published today of seven programmes SIB has managed since 2012 says that it has awarded grants worth £40.5m to 677 organisations in this time.
Over a third of the recipients, 245, have so far gone on to either raise investment or win contracts.
The report said that the charities awarded grants through the programmes have subsequently raised £95m worth of social investment, with an average investment secured of £205,000.
The contracts awarded amount to £1.1bn, with an average contract size of £2.3m.
Four of the programmes reviewed are described as “investment readiness” funds, intended to help organisations to buy in consultancy support to build their own capacity so that they are better placed to secure social investment.
While SIB says these programmes have been successful, it says that future funds should focus on helping charities to embed organisational change and build resilience instead.
The report says: “Many organisations do need help to take on investment. But framing support around raising investment – rather than the traits which may make it more likely – focuses work in the wrong place.
“Instead, focusing on resilience will help more sector organisations be in the best place to improve people’s lives.”
It adds: “We recognise that previous funds may not have allocated enough for applicants to do this effectively. This needs to change.”
The programmes covered in the report are:
- Big Potential Breakthrough and Big Potential Advanced, both funded by the Big Lottery Fund
- Investment and Contract Readiness Fund and Impact Readiness Fund, both funded by the Cabinet Office
- Childcare Investment Readiness Fun, funded by the Department for Education
- Impact Management Programme, funded by Access
- Community Assets and Grants Programme, funded by the Department for Communities and Local Government