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A B C D E F G H I J K L M N O P R S T V W Y

Charity investment matters

Charity investment matters

Investments by charities can be an important and significant source of income, a means of furthering a charity’s charitable purposes or, in some cases, both.

The majority of charities have historically invested funds in order to achieve a financial return. The Charity Commission refers to this as “financial investment” and this is permissible provided the level of risk involved is acceptable.

It has however become increasingly common for charities to invest funds in a manner that can be said to directly further their charitable purposes. So for example, a charity that assists people into employment might make very low interest loans to such people so as to enable them to attend useful training courses with a view to securing repayment once a person finds employment. This type of an investment is known as “programme related investment”.

In some cases, investments might not fit neatly into either of the above definitions and could be considered to be “mixed motive investments”.

In all cases, charities investing funds will be exposed to risk which the charity trustees must properly manage. In addition, specific duties and obligations apply depending upon the type of investment.

Our Charity Law solicitors can advise charity trustees on their legal duties when investing charitable funds and work with other professional advisors on charity investment matters.

Charities Newsletter

Our team of Charity solicitors publish a quarterly newsletter covering the latest legal news and developments in the world of Charities and Social Enterprises. To find out more please visit the CSE News page in the Publications section.

Useful downloads

Charities and Social Enterprises leaflet

Charities - Services for the Non-Domiciled Philanthropist

Academy Schools booklet - From Conversion to Successful Operation:

A comprehensive and authoritative overview of legislation relating to Academies,with practical guidance on their establishment and operation. Co-authored by four expert practitioners, the book is essential reading for anyone involved in the process of establishing or running an Academy and will also be of interest to those who want to know more about this important new development in our educational and social environment.

A free sample of the book is available to view HERE

To purchase the book please click HERE

Information sheet 5: The Strategic Report and company charities

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