Charity Bank, the loans and savings bank for charities and social enterprises, today announced its annual results for the year ended December 2021.
The ethical bank made its largest ever surplus of £0.9 million that will be re-invested in support of its social mission, whilst making £51 million in new loans to charities and social enterprises, more than at any other point in its history.
In addition, the bank was the most active intermediary of loans made by the Resilience and Recovery Loan Fund (RRLF) across 2020 and 2021, helping to secure nearly £12 million in loans and small grants to 27 organisations affected by the pandemic.
In support of its future growth, Charity Bank also attracted over £5m in new equity capital from new and existing shareholders including, Alternative Bank Schweiz, Bank Workers Charity, Barrow Cadbury Trust, Big Society Capital, Clothworkers Foundation, Garfield Weston Foundation, Samworth Foundation, and The Places Foundation.
Ed Siegel, CEO of Charity Bank said: “Despite the ongoing pressures of the pandemic, we have been able to step up our support at a time the social sector has needed us. Our lending to UK charities and social enterprises facilitates positive social outcomes by our borrowers. With the help of a Charity Bank loan and support, our borrowers are able to improve their financial position, enhance the quality and reach of their services, and are left in a better position to deliver their mission.
“Our record results put us in a strong position to continue growing our lending activities, and therefore our social impact. It also enables us to expand our services and reach more organisations that wouldn’t otherwise be able to access loan finance on affordable terms. This work is already underway and includes strengthening our Social Lending Team to support our aim to lend more to smaller underserved charities and social enterprises, including organisations that are working with minoritised communities.”
Alongside its Annual Report, Charity Bank has published its 2021 Impact Report which breaks down and demonstrates how Charity Bank is helping to make a positive difference in society by supporting, strengthening, and furthering the work of social purpose organisations.
Key findings of the Impact Report include:
- 100% of respondents said their Charity Bank loan contributed toward their mission
- 70% said it financed activities that grant funders would not
- 89% said it improved the quality of their service or facilities
- 68% said it increased the likelihood of growth
- 70% said it improved financial planning
- 66% said their project would not have gone ahead without their Charity Bank loan
About Charity Bank
Charity Bank is the loans and savings bank owned by and committed to supporting the social sector. Since 2002, we have used our savers’ money to make more than 1,100 loans totalling over £400m to housing, education, social care, community and other social purpose organisations.
Nothing in this article constitutes an invitation to engage in investment activity nor is it advice or a recommendation and professional advice should be taken before any course of action is pursued.
The Resilience and Recovery Loan Fund (RRLF) is managed by Social Investment Business (SIB) who make the ultimate lending decision. Charity Bank was one of eight social organisations who delivered this fund. RRLF is not appropriate for all organisations and eligibility criteria applies. Borrowers remain 100% liable for the debt.