SOCIAL Investment Scotland has unveiled plans to raise up to £500,000 from investors across the UK to support between five and 10 social enterprises north of the Border.
It is presenting the new fund as an opportunity for those who put up money to receive a "social, as well as financial, return on investment", citing research showing a desire among wealthy individuals for their money to "do good".
The organisation, which is chaired by boardroom veteran Nick Kuenssberg, said that the SIS Community Capital fund would be one of the first social investment tax-relief funds available to UK investors.
It said SIS Community Capital would enable individuals to invest in a fund which provided "third-sector" organisations with access to loans at an affordable cost, something that would not be readily available from other finance providers.
Social Investment Scotland added: "Tax relief for investors will be provided in the form of a 30% relief on their investment from their income tax liability."
It is seeking up to £500,000 as the "initial tranche" of money for the fund.
Social Investment Scotland, established in 2001 to provide a new finance model for charities and social enterprises, said this money would be used to support between five and 10 social enterprises north of the Border.
It noted that it had, since 2001, invested more than £43 million in nearly 200 organisations across Scotland.
Social Investment Scotland added that projects which had benefited from the funding were worth more than £60m and tackled a range of social issues including employment and training, health, arts and culture, care, and the environment.
Among the businesses backed by the organisation is Social Bite, a sandwich-shop business founded by Josh Littlejohn and Alice Thompson. About 25 per cent of the staff employed by Social Bite are from homeless backgrounds.
Social Investment Scotland currently manages the largest social enterprise fund north of the Border on behalf of the Scottish Government.
The SIS Community Capital fund is scheduled to launch in May.
Social Investment Scotland said that a report from ClearlySo and Big Society Capital in 2013 had suggested the retail investor market could generate £165m of new social investment capital over the next three years and £480m over the next five years.
It added that this report had been based on research by pollster Ipsos MORI highlighting "unmet appetite for social investment amongst high net worth individuals, who wanted their money to do good".
Mr Kuenssberg said: "SIS has built up a great track record and enviable reputation throughout the UK's social investment market, built upon its experience and expertise of delivering investment funds effectively. Research shows that there is an unmet demand for social investment products, and SIS Community Capital is our response to that demand."
Thomas Gillan, chief financial officer of Social Investment Scotland, said: "As one of the first funds of its kind available to UK investors, SIS Community Capital has enabled us to look beyond our traditional sources of investment to connect more capital with more communities across Scotland."
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