SIS funding drops after government scheme ends

THE amount of funding provided by Social Investment Scotland to social enterprises, charities and community organisations fell sharply in the latest financial year following the end of a government support scheme.

However, chairman Nick Kuenssberg said the organisation had made good progress in the year to March 31, firmly establishing itself as one of the UK’s, leading responsible finance providers.

Social Investment Scotland provided a total of £4.3 million funding for more than 50 organisations across the country in the latest year.

In the preceding year SIS invested a record £7.5m in 45 organisations.

A spokesman for SIS said the fall in activity reflected the fact a £30m fund which SIS had managed on behalf of the Scottish Government from 2008 became fully invested in the 2014-15 financial year.

But SIS noted it has developed new funding sources, which have allowed it to extend its reach.

Chief executive Alastair Davis said: “Despite another year of economic volatility, we have seen both a sustained demand for social investment and a growth in supply of investment capital from a range of sources.”

He added: “The variation of available funding is enabling SIS to provide customers with a greater range of financial solutions better suited to their requirements which, in turn, is helping them to deliver greater social impacts.”

The new funding sources include the Asda Community Capital fund, which SIS set up to use the charitable funds raised from the carrier bag levy in Scotland.

It manages the Social Growth Fund, created with £8m backing from the Scottish Government and £8m from the Big Society Capital operation launched by the UK Government.

During the latest year, SIS invested some £399,000 provided by private investors who benefited from a new tax relief.