Models for delivering social impact are changing, with the advent of social purpose organisations as an alternative to traditional charities. This development means that charitable foundations need to evolve as well, so that the much needed capital is available in sufficient quantities to support this new wave of impact organisation in fulfilling their ambitions. Unfortunately, a lack of clarity from funders as to how existing UK charity regulations should be interpreted is restricting the flow of philanthropic capital. This report reviews some cases of best practices and approaches to making philanthropic investments. It also identifies where greater legal clarity is required to allow charitable foundations to adopt and implement more innovative models of funding.
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