The report showcases the remarkable achievements and transformative impact of Charity Bank's loans on UK charities and social enterprises, emphasising the bank's commitment to social progress.

The 2023 Social Impact Report highlights several key areas where Charity Bank has made a significant difference:

1. Reaching Underserved Communities: Charity Bank has prioritised serving the most deprived areas, where people face financial hardships, limited affordable housing options, and premature mortality rates. In 2022, 60% of Charity Bank's lending was directed towards the four most deprived deciles of the UK, bringing hope and support to communities that need it the most.
2. Reaching Diverse Organisations: Recognising the underfunding of organisations led by management teams from diverse backgrounds, Charity Bank lays out its commitment to extend its outreach and support to these communities. The 2023 Social Impact Report highlights the representation of diverse-led management teams among Charity Bank borrowers, which show from among survey respondents, 29% are women-led management teams, 1% LGBTQIA+ led, 9% are from Black, Asian, and/or Global Majority led, and 2% are led by those with a disability.
   
3. Financially Stronger Borrowers: In this first-of-its-kind study, Charity Bank analysed financial metrics for 79 social sector borrowers over a four-year period, encompassing one year prior to the borrowers' initial loan and three years following the loan. The key results for supported charities over the four-year period, include a 16% average increase in turnover, 8% growth in net income, a 47% rise in total assets, and a 35% increase in net assets.
4. Growth and Resilience: The survey conducted among Charity Bank borrowers also found that over the period: 78% of borrowers reported increased resilience, 71% became less dependent on grant funding, 73% improved their planning abilities, 57% enhanced their ability to withstand short-term shocks, 74% expanded the number of people they supported, and 58% delivered higher-quality programs and services.
5. Enabling Vital Projects: Some borrowers turned to Charity Bank as their sole viable option to secure financing. Whether they faced obstacles with high interest rates or inflexible loan conditions from other lenders, Charity Bank stepped in to make their projects possible. Where a loan was for a specific project: 68% of respondents report their project would not have proceeded without their Charity Bank loan and 26% would have been delayed.
6. Mission-Critical Support: Respondents consistently reported that Charity Bank's loans made a major positive contribution toward delivering their mission. The bank's commitment to supporting organisations in achieving their goals was evident, with 74% of respondents acknowledging a significant impact and 24% noting a modest positive contribution.
7. Support for First-Time Borrowers: Recognising that loan finance is still relatively new in the social sector, Charity Bank extended its expertise and support to first-time borrowers. The report reveals that 70% of survey respondents approached Charity Bank for their inaugural loan, demonstrating the bank's dedication to assisting smaller charities and those lacking in-house financial skills. Each borrower is matched with a relationship manager, ensuring personalised support throughout the loan process.
8. Navigating the Cost-of-Living Crisis: The report reveals that 96% of respondents experienced increased operating costs, affecting cash balances and hindering their ability to meet growing demand. Charity Bank's loans and supportive approach have helped organisations weather economic turmoil, with 66% of respondents affirming that the bank's support bolstered their resilience and 58% stating it improved their crisis response capabilities.

Ed Siegel, CEO of Charity Bank, expressed his enthusiasm for the 2023 Social Impact Report, saying, "We are excited to share the stories and numbers that demonstrate the profound impact of our loans on UK charities and social enterprises. The report showcases how we are helping charities and social enterprise to grow and be resilient and the positive difference being made in the lives of people, communities, and the planet."

“The study's findings further reinforce our belief in the positive impact of loan finance and its role in strengthening impact, fostering financial self-reliance, and delivering higher-quality outcomes. We remain dedicated to supporting the long-term sustainability and success of the sector. Together, with our borrowers, savers and shareholders, we will continue driving positive social change and creating a brighter future for all."

To access the full Charity Bank 2023 Social Impact Report and learn more about Charity Bank's commitment to driving positive social change, please visit www.charitybank.org/ImpactReport

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Notes

The loan survey was offered to 195 of our current and recently repaid borrowers, with 134 completing the survey (a 67% response rate).

Data for this report included the following sources:

• Ongoing tracking of social and financial data
• Financial metrics for our borrowers from Companies House, Charity Commission UK, Charity Commission NI and OSCR
• Impact surveys conducted between March and May 2023