Don’t Miss Out on Opportunities for Social Investment in the Jericho Foundation

© Copyright 2010 CorbisCorporationSocial Investment Tax Relief was introduced in 2014 to encourage people to support charities and social enterprises by helping them to access new sources of finance.

The finance provided will typically be in the form of share capital or unsecured loans repayable after three years. Since April 2014, any registered charity, community interest company or community benefit scheme with fewer than 500 employees and gross assets of no more than £15m can use SITR to raise funds for various projects from people with a social conscience. It was billed as the first scheme of its kind in the world to incentivise social investment through the personal tax system.

As a Birmingham-based registered charity, the Jericho Foundation provides a holistic package of personal development support to local people who are at the margins of society and who are experiencing significant personal and occupational barriers to employment. We deliver supported employment, qualifications, skills, work experience and apprenticeship programmes within our eight social enterprise businesses. These businesses trade in the commercial market place offering high quality, value for money goods and services to a broad range of customers in the private, public and third sectors.

Our Client Support Team comprises a group of skilled people who provide individual guidance, employability skills and mentoring to the people we support. This is essential to help those people to overcome their barriers and become fully skilled, fulfilled and ready for employment – obviously this is a cost that does not affect other, regular trading organisations.

Our social enterprise trading delivers the vast majority of the income that the charity requires (85% of our £3.2M turnover for the year ending March 2016). However, to augment this we have a constant need for working capital. We are always looking for social investors who can help provide this funding.

Individual investors who choose to support our charity by lending to us can enjoy significant tax benefits plus interest through the SITR scheme, sure in the knowledge that they will be helping disadvantaged people in Birmingham.

As an example of SITR, a UK tax payer who lends £10,000 to Jericho for 3 years can claim £3,000 back immediately in tax relief and then enjoy up to 4% interest every year for 3 years. Then, if they choose to donate the money to us, they could claim an extra tax rebate and we can claim gift aid, effectively giving Jericho an income of £12,500 for an investment of as little as £2,675.

To see our HMRC approval certificate and FAQ click here.

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