This guide is split into three parts: a short introduction to social investment and Social Investment Tax Relief (SITR); a case study of how we used SITR to raise finance for Freedom Bakery; and a step-by-step guide for charities and social enterprises hoping to use SITR. SITR can be a useful tool for social entrepreneurs looking for investment to develop their early stage venture.
It gives social enterprises the chance to raise money directly from investors who will invest on the right terms for the business and may also offer to contribute any relevant expertise they have to your venture.
This guide focuses on raising finance via SITR loans rather than selling equity as most charities and social enterprises are unable to sell shares. Some of this procedural guidance is not currently covered by existing government guidance.
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