NCVO CEO CALLS FOR A SOCIAL INVESTMENT BANK, TO ENABLE THE CREATION OF ALTERNATIVE SOLUTIONS TO THE STATE AND MARKET
Speaking at the Charity Bank AGM today, Stuart Etherington, CEO, NCVO, argued that civil society organisations play a crucial role in providing alternative solutions to the state and market.
Etherington said: “Charities, co-operatives, community based models, or social enterprise can provide different solutions to those traditionally provided by the state or the market. But for this to happen an independent and thriving social investment marketplace urgently needs to be developed in order to support the sector’s short-term and long-term financial requirements.”
“The establishment of a SIB will be hugely beneficial. It will give charities and voluntary organisations greater access to capital investment opportunities, allowing them to enhance their capacity and provide better support and services to the individuals and communities they work with.”
Etherington outlined his proposal for the development of a wholesale level Social Investment Bank (SIB). This will support and capitalise existing social and ethical investment institutions, such as Charity Bank, who will act at the retail level, offering capital loans and other financial instruments to voluntary organisations. Government could kick-start the SIB with £50m of support, further funding would come from dormant bank accounts. He also proposed diverting the return flow of Futurebuilders funds to support the SIB.
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