What charities need to know when preparing for social investment

Our investors understand that backing this work may require accepting lower financial returns or a different risk profile from conventional markets. In return, their capital enables projects that would not proceed if dependent solely on commercial finance.

Social and sustainable housing

Supported housing has become one of the clearest expressions of this philosophy. In 2019, SASC launched Social and Sustainable Housing (SASH), an innovative housing finance model co-designed with charities. SASH allows small and medium-sized charities who already provide supported accommodation to acquire and manage properties themselves, providing stable homes for vulnerable people.

Unlike a traditional mortgage or lease, SASH absorbs many of the risks that charities traditionally face, such as the need to find high deposits, fixed repayments, or rely on private landlords, while offering investors an appropriate financial return.

Through ten-year loans, often blended with grant funding from partners, charities can purchase properties to deliver supported accommodation while building their organisational resilience. The aim is not to overload charities with risk but to share it intelligently, creating sustainable assets and equity over time.

The design of SASH reflects shared priorities: it is built in consultation with charities, ensuring that risks are manageable, ambitions are achievable, and long-term outcomes for beneficiaries are prioritised. It recognises that charities are best placed to deliver compassionate, community-rooted services and that social investment can accelerate their ability to do so.

Making a successful application

Charities seeking social investment through SASH need to demonstrate a few core fundamentals:

1. A “People First” approach – charities must clearly focus on improving beneficiaries’ lives and have a proven record of delivering quality supported accommodation. Evidence of genuine partnership with local councils and measurable impact on recovery and independent living is essential.
2. Financial resilience – charities must show a sustainable financial position and realistic forecasts, ensuring they can manage the responsibilities of property ownership.
3. Local knowledge and strong leadership – charities should have a senior management team with deep knowledge of local needs.
4. Appropriate financial returns – expected yields must meet SASC benchmarks while remaining sustainable for the charity.
5. Proven operational experience – charities must demonstrate they understand how to manage dispersed housing safely and effectively, including staffing, maintenance, and other operational costs.

Even with these fundamentals in place, charities often need guidance. SASC does not rely solely on written applications; publicly available information such as annual reports and websites is reviewed alongside early discussions. Also while some charities are not immediately ready for investment, by engaging early, we can provide advice on areas to strengthen.

Our philosophy is to build long-term partnerships. This means that even if a charity is not fully ready to take on a loan today, feedback from SASC allows them to work on key requirements and return months or even years later, better prepared to proceed with a project. In this way, social investment is not a one-off transaction but a developmental process, helping charities become more financially self-sufficient and capable of generating meaningful social impact.

Shaping proposals to maximise impact

Social investment is not just about providing funds; we encourage charities to show how a loan fits into their overall strategy. This includes proposing an indicative property portfolio and demonstrating how property ownership can improve resilience and strengthen services to councils and beneficiaries. Ownership enables charities to control property standards, plan long-term, and focus resources directly on services rather than rent payments, creating more meaningful social impact.

For example, Handcrafted, a North-East charity supporting vulnerable adults and children with complex needs, is taking on a second SASH loan of £2.265 million. The loan will allow them to purchase 21 properties, creating 32 new bedspaces in Sunderland, Durham, and Darlington.

The first SASH loan in 2022 enabled Handcrafted to purchase 23 properties, alongside further developments in operations and governance which led to them achieving an Ofsted registration and developing their pioneering “hub model” of supported accommodation.

Dan Northover, CEO of Handcrafted, explains: “The first SASC loan helped us build a strong, supportive hub in Gateshead. The second loan allows us to replicate that model in new areas, providing safe, permanent homes and holistic services. It is about scaling something that works while maintaining quality and tailoring our work to each local community. Ownership lets us plan ten years ahead, invest in property quality, and take a person-centred approach, matching the right home to the right individual, which leads to better outcomes for vulnerable groups.”

Due diligence a development tool

Adaptability matters. Social investment carries obligations, and charities that treat due diligence as a strategic exercise rather than a hurdle often gain the greatest value. Business plans are stress-tested, assumptions interrogated, and governance responsibilities clarified. Although the process may seem demanding at the outset, it frequently strengthens internal confidence and organisational readiness.

The Brick, operating in Wigan and Leigh, provides services for people facing homelessness, financial hardship, and crisis. Initially planning to purchase 20 properties, the charity was able to expand to 40 units thanks to the flexibility of SASH investment. This included self-contained flats, some with full disabled access, which were critical to meeting local needs.

Property ownership reduced the charity’s exposure to private landlords, improved their energy standards, and allowed lower rents to be maintained. The process also helped trustees and senior management refine their governance and operational capacity.

Keely Dalfen, CEO of The Brick, highlights the impact: “Ownership has transformed how we operate. It has given us control over the quality of accommodation, allowed us to plan strategically, and strengthened our credibility with commissioners. The due diligence process, though rigorous, helped our board and senior team refine our capacity and governance. Without this support, we would not have been able to scale safely and effectively.”

Enduring partnerships

SASC aims to develop enduring partnerships with the charities it supports. Beyond providing capital, SASC monitors performance, meets regularly with investees, and reviews properties and overall progress. We discuss areas for improvement and ensure charities adhere to best practices in governance, following Charities Commission and sector-specific guidelines.

Recipient charities are expected to service loans, deliver meaningful social impact, and maintain high-quality accommodation. Regular reporting is also required, both financial and social, with regular updates on key performance indicators assessing tenants’ wellbeing, satisfaction, and progression toward independence.

While SASC sets expectations and monitors impact, we adopt a constructive, collaborative approach. Interventions are guided by shared purpose rather than punitive intent. If targets are not being met, we identify potential problems early and work with charities to find solutions, prioritising long-term sustainability and the wellbeing of beneficiaries.

Measuring impact

Social impact is generated by the charities themselves, not the investment. However, SASC tracks outcomes through measures such as mapping properties against the Index of Multiple Deprivation, tenant satisfaction, progression toward independent living, and organisational sustainability. Regular engagement ensures that both parties remain accountable, and that investment translates into tangible improvements in people’s lives.

Preparing for social investment

For charity managers considering social investment, there are key lessons:

• Know your fundamentals: focus on governance, financial stability, local knowledge, and proven operational experience.
• Be open to guidance: early engagement with investors can refine proposals and increase the likelihood of a successful investment.
• Plan for the long term: ownership enables strategic growth, higher standards, and better service outcomes.
• Use due diligence constructively: rigorous assessment strengthens internal capacity and confidence.
• Commit to partnership: social investment is relational capital. Transparent communication, reporting, and shared purpose are essential.

Social investment is not a panacea, but when structured appropriately, as SASH demonstrates, it allows charities to move from managing scarcity to building assets, from reacting to crisis to shaping systems, and opens opportunities to scale for meaningful, sustainable impact.

How all this has worked for the charities mentioned above and others – Handcrafted, The Brick, and other SASH partners – illustrates that with strategic planning, strong governance, and openness to support, social investment can transform both organisations and the people they serve.