Charity organizations in the UK have been using the social investment market to raise funds in the past few years. This is part of a larger trend in UK charities, which are moving away from individual grants and donations and towards investing and loans. The social investment market in the UK, which has risen at a rate of 20 to 30 percent a year, was seen by 60% of charity-group respondents in one survey as a useful tool for raising money.
Research suggests that in the future, social investing could account for more than 10% of charity funding. Unfortunately, the use of the social investment market can be hampered by a lack of knowledge, ethical concerns, or unease with borrowing money. Charities that do want to use investing need to develop strong financial models that will support their mission and future growth in the financial investment sector.
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