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19.03.13 / Social Banking / Author: Mark Howland / Comments: (0)
The Charity Bank blog has now moved.
For future articles please see www.charitybank.org
We are in danger of missing the point
06.07.12 / Impact Investing, Social Banking, Social Investment, Transparency, investment, saving, social impact / Author: Malcolm Hayday / Comments: (0)
The financial system is not working in the way it should. And we should condemn the bad banking practices, especially those arising within Canary Wharf, where people live and work in a way that is totally divorced from everyday life.
BUT we should not condemn finance, rather we should reclaim it for the common good (remember banking for the common good?). If used responsibly finance is one of the most powerful tools we have for addressing our common problems and increasing our wellbeing.
Financial innovation has brought us insurance, microfinance, mortgages, pensions, savings accounts – all of which, when not mis-sold, have contributed to the good of society. We need more responsible innovation, not less, so that we can re-channel financial creativity for the common good.
Right now finance has come to be seen as the manipulation of money for short term gain or the management of risk. We need to see it once again as the stewardship of society’s assets – not just personal wealth – but that of society as a whole.
The pitfalls of impact measurement
26.06.12 / Impact Investing, Social Banking, Social Investment, Transparency, investment, social impact / Author: Mary Locke / Comments: (0)
1) It is for funders; impact measurement helps organisations prove that their funders’ money is being well spent.
2) It is for management, who want to understand what’s working, and use this to improve their services going forward.
3) Sometimes mentioned, it is also for staff, to demonstrate to them the difference they are making and increase morale.
4) A critical group often overlooked, it is for service users themselves. Not only will they, in theory, benefit from improved provision, but the best measurement systems can be empowering in themselves. Rather than simply extracting information from them, a good system can also help users think through the issues they face and give them an insight into their progress.
It is difficult to devise a system that satisfies all four groups. Funders need to outcome-crunch. They need numbers, perhaps with some case studies on the side to add colour. Numbers require closed question, tick box scoring systems. This generates useful data that can be aggregated, compared, shown on charts and graphs. What gets measured gets managed, as management guru Peter Drucker noted. But there is inevitably a danger that external demands for easy to measure, comparable numbers lead to important issues being ignored. Studies have shown how, in NHS hospitals which managed to improve patient waiting times as a result of close monitoring, death rates following emergency heart attack admissions rose. Because waiting times were targets under the NHS reforms they were therefore carefully tracked. Heart attack deaths were not and it would seem, less attention was paid to them.
Any good impact measurement system needs to leave room for open-ended questions, feedback and discussion. This not only helps to give flavour to the hard numbers, but also, crucially, can pick up on unintended effects, good and bad, and act as a check of whether the right data is being collected in the first place. The system alone is not going to produce all the answers.
Learn more about Charity Bank’s approach to impact measurement from this short film, filmed during Charity Bank’s 2012 Open Day:
Impact measurement – crucial to social change
20.12.11 / Big Society, Charity Loans, Ethical Bank, Ethical ISA, Impact Investing, Social Banking, Social Investment, social impact / Author: Mark Howland / Comments: (0)
The social finance sector is discussing constantly how best to measure social impact, but in spite of experimentation with different methodologies, no consensus has yet been reached. Charity Bank has used impact measurement for many years and we are currently refining and embedding our own impact measurement systems. We know that there is no magic formula; in the words of NCVO, “It is impossible for an organisation to measure its impact without being open to some degree of criticism”. read more
Investment Matters: why the Charity Commission has got it right
04.11.11 / Ethical Savings, National Ethical Investment Week, Social Banking, Social Investment / Author: Mark Howland / Comments: (0)
This week has seen the publication of new guidance on investment for charity trustees from the Charity Commission. The new embodiment of CC14 is entitled Charities and Investment Matters: A guide for trustees and lays out clearly a number of different investment types.
The document provides details and examples of Programme Related Investments (PRIs) and Mixed Motive Investments (MMIs), both of which offer charities the option of investing funds according to their mission rather than simply according to maximum financial return. The language is jargon-free and the messages straightforward. read more
Bringing trust and responsibility back to banking
27.10.11 / Charity Loans, Ethical Bank, Ethical ISA, Ethical Savings, National Ethical Investment Week, Social Banking, Social Enterprise, Social Investment / Author: Mark Howland / Comments: (0)
Our 2011 ‘Different Journeys’ programme is now complete. It was our most ambitious programme of visits to date, taking the public to see 20 of our borrowers during National Ethical Investment Week.
These visits have enabled us to share directly with our customers and the public the difference that money saved and invested in Charity Bank is making to charities, social enterprises and communities across the UK. read more
Is it really worth the sacrifice of human lives to make more profit?
17.08.11 / Ethical ISA, Ethical Savings, National Ethical Investment Week, Social Banking / Author: Mark Howland / Comments: (1)
Today’s article by Chris Atkins in The Independent illustrates all that is wrong with the traditional investing model used by most of Britain’s High Street Banks. To learn about why RBS is investing in companies that make cluster bombs, which are responsible for killing and maiming thousands of civilians, Chris tried to corner RBS’ chief executive, Stephen Hester, but was denied access to him.
Undeterred, Atkins finally came across a merchant banker at RBS’ headquarters in Bishopsgate and who gave the unapologetic answer to why RBS – as well as Barclays, Lloyds and HSBC – is investing in companies that make these weapons was simple. It all comes down to the fact that makes money. read more
Charity Bank Open Day: Pioneers and adventurers in the world of social finance
20.05.11 / Big Society, Ethical Money, Social Banking, Social Enterprise, Social Investment, Transparency / Author: Mark Howland / Comments: (0)
Charity Bank’s Open Day took place yesterday in the beautiful former church of St Lukes in Old Street, London and was once again facilitated energetically and professionally by Peter Woodward, who kept the conversation flowing between the panels and the delegates.
The theme of this year’s Open Day was Making Good Society and Charity Bank’s part in working to achieve this. The topics covered ranged from Charity Bank’s role in society, how we can work with the Big Society Bank to methodologies for measuring social impact. read more
Money rules the world – who rules the money?
13.04.11 / Ethical Money, Social Banking / Author: Mark Howland / Comments: (0)
“Money rules the world – who rules the money?” This is the question we will be putting at the 4th International Summer School on Social Banking, due to take place in Canterbury, Kent from 3rd to 8th July 2011. The event, jointly hosted by Charity Bank and the Institute for Social Banking, will address the question through seminars and workshops dedicated to considering the changing role of money and investment around the world. read more
Social enterprises are not here to sweep up the mess
18.03.11 / Social Banking, Social Enterprise / Author: Caroline Mason / Comments: (1)
We have had a charming visitor here at Charity Bank this week. Katharina Beck, of the Institute of Social Banking, with whom we are planning a very exciting summer social banking school. She commented on how so many exciting things were happening here in the UK and, I suppose, they are. There is a danger that we get so immersed in our day to day that we forget to look up and see the progress we have made.
Those that are delivering the most innovative, successful and effective solutions in the UK do so because they are driven by the business of fundamental change rather than just a do good desire to improve people’s life. read more
2011 – the year of the socially useful bank?
25.02.11 / Social Banking / Author: Malcolm Hayday / Comments: (0)
The first days of 2011 saw the EU bring in new rules to curb bankers’ bonuses, an indication of the increasing tensions between governments and the banking sector. In August 2009, Lord Turner, Chairman of the UK’s Financial Services Authority, had described some of the City’s activity as ‘socially useless’. Since then, a wider discussion has been taking place about the utility of banking and its role in financing economic activity. The UK Banking Commission is due to report later this year. read more