The £5 million fund will match crowdfunded investments made by individuals into social investment tax relief (SITR)-eligible charities and social enterprises. Big Society Capital is looking for crowdfunding platforms to partner with to deliver the fund in 2016.
Ben Warren of the Big Society Capital Investment team said,
We are excited to launch the request for proposals for the Crowd Match Fund and partner with innovative crowdfunding and peer to peer lending platforms listing social ventures. These lending platforms are a great way to help connect people with the causes they really care about. We want to work in partnership with platforms and match £5m into charities and social enterprises that are eligible for social investment tax relief. We believe this could unlock a whole new market for engaging the public in social investment.
The repayable match fund is open to crowdfunding, peer-to-business and alternative finance platforms seeking to list social sector organisations raising debt and equity finance.
Platforms deploying the fund on their sites will allow the public to invest directly in charities and social enterprises, and make use of SITR. SITR enables individuals to gain personal tax reliefs, which can include income tax at 30% of the amount invested, capital gains disposal and hold-over relief.