Charity Bank Study Reveals Financial Impact of Loans on Charities and Social Enterprises

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Charity Bank, the loans and savings bank for social good, has released a ground-breaking study showcasing the financial impact of its loans on charities and social enterprises.

This first-of-its-kind study, incorporating data analysis and borrower surveys, provides valuable insights into the tangible benefits experienced by organisations supported by Charity Bank.

Analysing Financial Metrics

As part of the study, Charity Bank analysed financial metrics for 79 social sector borrowers over a four-year period from one year prior to the borrowers' initial loan to three years following the loan. Key findings include:

  • Turnover Boost: Supported charities experienced an average increase of 16% in turnover, demonstrating a significant boost in revenue generation.
  • Net Income Growth: Borrowers saw an average growth of 8% in net income, contributing to their financial stability.
  • Total Assets: Average total assets increased by 47%, reflecting the positive impact of Charity Bank loans often have in facilitating asset acquisition and expansion.
  • Net Assets: Average net assets increased by 35%, in many cases reinforcing the loans' contribution to financial strength and resilience.
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Survey Findings: Strengthening Impact and Resilience

The study also included a comprehensive survey among Charity Bank borrowers, where respondents reported changes in various growth and resilience metrics since receiving their first loan from Charity Bank. It revealed the following key findings:

  • Increased Resilience: A remarkable 78% of borrowers reported increased resilience after receiving a loan, supporting long-term sustainability.
  • Financial Self-Reliance: 71% of borrowers stated that they became less dependent on grant funding, fostering stability and independence.
  • Enhanced Planning Abilities: 73% of borrowers improved their ability to plan and adapt to evolving circumstances.
  • Improved Short-Term Shock Resilience: 57% of borrowers experienced enhanced ability to withstand short-term shocks.
  • Expanded Impact: 74% of borrowers increased the number of people they supported, positively impacting more individuals and communities.
  • Higher Quality Outcomes: 58% of borrowers delivered higher-quality programs and services, positively transforming lives.
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Mwansa Phiri, Impact, Policy, and Diversity Manager at Charity Bank, emphasised, "This study reaffirms the transformative power of loan finance for charities and social enterprises. Accessing loans from Charity Bank strengthens their financial position, enabling them to expand their impact and adapt to change. We remain committed to providing the support necessary for the sector's long-term sustainability and success."

Big Society Capital (BSC) contributed to this study through its Enterprise Level Impact framework, evaluating the impact of lending on growth and resilience.

“We applaud Charity Bank's commitment and strides in comprehending the impact of their loans on borrower growth and resilience. This is not only important in the current macro-environment but also crucial in the long term to better support social enterprises and charities in improving the lives of vulnerable people across the UK. As we roll out the framework to include more organisations and more years of data, we hope to provide further value and insight to the sector.”

Iman Kabani, Interim Data and Portfolio Manager at BSC

To learn more about Charity Bank and its loans, please visit For more information about the Enterprise Level Impact framework, visit or contact

Borrower Survey

Charity Bank’s impact surveys were conducted between March and May 2023. The borrower survey was offered to 195 of its current and recently repaid borrowers, with 134 completing the survey (a 67% response rate).

Analysing Financial Metrics

Big Society Capital contributed to this work, setting a standardised Enterprise Level Impact framework to evaluate the impact of lending to social enterprises and charities on their growth and resilience. The methodology involved analysing financial metrics over a four-year period for 79 Charity Bank borrowers with publicly available data from Companies House and Charity Commission. Data from one of the UKs largest charities was excluded from this study as an outlier.

About Charity Bank

Charity Bank is the loans and savings bank for charities, social enterprises and people who want to make the world a better place. It uses its savers’ money to provide much needed loans to UK organisations working to drive positive social change – bringing benefits for people, communities and the environment.

Since 2002, Charity Bank has made more than 1100 loans totalling over £400m to housing, education, social care, community and other social purpose organisations. Charity Bank is owned by social purpose organisations and aims to use its expertise, commitment and flexible approach to lending, to help charities and social enterprises get the support and funding they need.

About Big Society Capital

Big Society Capital is the UK’s leading social impact investor. Our mission is to grow the amount of money invested in tackling social issues and inequalities in the UK. We do this by investing our own capital and helping others invest for impact too.

Since 2012, we have helped build a market that has directed more than £8 billion into social purpose organisations tackling issues from homelessness and mental health, to childhood obesity and fuel poverty, a ten-fold increase in ten years.

Further information about Big Society Capital can be found at