Reviewing Allia’s charitable bonds

Many charities in the UK are struggling to make ends meet. With more competition for unrestricted donations and grants, charities are looking for new ways to raise funds. Funders too are finding it hard to keep pace with increasing calls for donations. They need new ways to give that don’t put them under too much financial strain.

The charity Allia has developed a series of bonds which use social investment to generate unrestricted funds for charities. It gives donors the chance to invest in charitable bonds for five years using capital funds they want to keep at minimal risk, rather than their everyday income. These bonds then generate a donation for a charity of the donor’s choice and, after five years, investors get back their original investment plus an optional financial return.

NPC was commissioned by Allia to review the bonds to provide an independent perspective on the mechanism. Our findings are set out in this report.

 Many charities are thinking about social investment right now and wondering if it’s right for them. We know that it’s not for right for everybody—at least for the time being. But there are ways that all charities – not just the ones that are ‘investment ready’ – can use it to their benefit.

Sarah Hedley, report author