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 31 March firmly establishing itself as one of the UK’s, leading responsible finance providers.
Social Investment Scotland provided a total of £4.3m 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 spokesperson for SIS said the fall in activity reflected the fact a £30m fund which SIS had managed on behalf of the Scottish Government became fully invested in the 2014/15 financial year.
The organisation started managing the fund in 2008.
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 within their local communities.”
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 £8 million from the Big Society Capital operation launched by the UK Government.
During the latest year SIS invested £399,000 provided by private investors who got tax relief under a new scheme.
The total income generated by SIS increased to £1.3m in the latest year, from £1.2m in the preceding period, reflecting growth in the loan book and additional management fees generated from its partnership with Asda.
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