Charity Bank lent £53.9m to UK charities and social enterprises in 2022, its highest ever annual payout, the organisation has announced.
The bank also reported its highest ever profit of £2.7m in the year to December 2022, all of which it pledged to reinvest in furthering its mission and extending its reach to underfunded charities and social enterprises.
In a new survey of organisations the bank funds, a third said that the money they received helped them to stay afloat.
Charity Bank also said it would focus more on impact over the next four years instead of “balance sheet growth” and increase the range and diversity of organisations it funds in 2023.
Shift away from ‘balance sheet growth’
Charity Bank’s revised strategy for 2023-27 focuses more on impact than “balance sheet growth”.
“Our past strategy statements and annual business plans were rightly focused on balance sheet growth, both for delivering social impact through our lending and to achieve and maintain a profitable and sustainable level of financial scale,” its report says.
“In our updated strategy for 2023-27, when we talk about growth, we’re mainly talking about growing our impact.
“Of course, we still need to maintain a sustainable scale of operations, and we continue to believe that our lending is the main contributor to our social impact, so continuing to grow the loan portfolio is consistent with our impact growth objectives.”
Ed Siegel, the bank’s chief executive, said: “We are committed to being the lender of choice for UK impact-driven organisations. We believe that we can make a real difference in the lives of people and communities across the UK, and we are excited to continue our work in 2023 and beyond.”
Money to underfunded areas
The bank reported that in 2022 60% of its lending was directed towards organisations operating in the most underfunded and underserved areas of the UK.
These areas have a high proportion of people on very low incomes, higher number of people dying prematurely and more people having trouble finding an affordable home.
A third of respondents to Charity Bank’s survey of 137 of its current and recently repaid borrowers acknowledged that the bank's support helped them to stay afloat.
Meanwhile, 61% said they had experienced a growth in income, 40% said they had reduced their operational costs and 89% noted an improved quality of service or facilities.
