NCVO has launched a new working group which will review tax incentives to stimulate the social investment market ahead of the March 2012 Budget.

The cross-sector group will be focusing on foundations and high net worth individuals. Its work will centre around three key areas: what tax incentives exist already, where changes to tax incentives could stimulate the market and how we can use the expertise of the broader investment market.

Sir Stuart Etherington, chief executive of NCVO, said:

"The social investment market is small but growing and has the potential to become a very significant source of finance to civil society in the coming years.  We want to play our part in making recommendations about how to get the right incentives in place for the market to realise its full potential."

Nick Hurd MP, minister for Civil Society, added:

'Social investment is potentially an important new pillar of funding for the sector. The government is very serious about wanting to help grow this market and have made clear that this goes beyond setting up the Big Society Bank. So I welcome fresh analysis and thinking from the sector.'

The group will report back on its findings by the end of the year.