Social Impact Investment Initiative

Social Impact Investment Initiative (Si3)

Si3 is a new UJIA initiative to provide social impact investment; a different form of repayable financing for organisations delivering social change. Alongside our existing and ongoing grant work in Israel, these investments will enable us to leverage our charitable funds further towards our social mission in the Galilee, Northern Israel.

What is UJIA looking to invest in?

UJIA will consider investments which further the aims of the charity to promote social and economic mobility for vulnerable communities, preferably in the Galilee, with a focus on:

  1. Education
  2. Employment
  3. Community Development

Further specific details of our preferred criteria can be found below.

What impact is UJIA seeking?

UJIA is seeking investments that make a social and financial impact.

  1. Social impact – the investment must have a clearly identifiable, high value social impact and positive outcome.
  2. Financial impact – the organisation receiving the investment (a loan for example) must have a for-profit objective, and be able to generate sufficient income from its activities, goods or services to cover the cost of the financing and its repayment.

What types of investment will UJIA make?

We will consider all types of investment vehicles, including loans, social impact bonds and equity provided the UJIA investment parameters are met.

For frequently asked questions, explanation on how to apply and examples of projects we have financed previously, please see below.

 

Frequently Asked Questions

Can UJIA invest in non-charitable companies?

UJIA can make an investment in a non-charitable company as long as it’s social mission is in line with the aims of the UJIA. In addition, any private benefit is not excessive and the investment is clearly for the public benefit.

What level of financial return is the UJIA seeking?

UJIA aim to recycle our funds and to recover all our financial investments together with a financial return, as well as secure a clear and measurable social return. UJIA does recognise that social investments may attract a lower financial return than market returns for the equivalent risk, but we believe this will be compensated for by the social return.

What are the repayment terms?

UJIA do not have set interest rates or repayment terms; it depends on the type of investment, what the organisation is aiming to achieve and what the social impact is likely to be.

What is the maximum investment amount available?

UJIA would expect to invest up to a maximum of NIS 400,000 in any one initiative. UJIA will only invest up to a maximum of a 50% equity position.

What are the additional investment criteria?

  1. Long term financial sustainability with the ability to raise capital from additional sources
  2. Strong entrepreneur or business partner with proven capabilities to deliver
  3. Reporting & monitoring capacity on how funds are being used and measuring social impact within an agreed time period
  4. Engagement with British Jewry to create/generate opportunities for the involvement of British Jews with Israel through UJIA’s work

Application timeline & how to apply:

If you think that your investment fits the criteria outlined above, please save to your computer and complete the application form here. Please return the form via email.

We will then assess these details and contact you for further information should we wish to proceed to a further stage.

Applications will be reviewed and a shortlist will be asked to submit more detailed proposals. This will include a meeting with UJIA personnel.

What is the deadline?

Applications are now closed for this year.

Who will decide?

An investment committee led out of London will review the shortlist and will make an investment decision around May/June 2017.

For any questions on Si3 please contact Dalia Black at si3@ujia.org

 

A few examples to date:

Koret Israel Economic Development Funds (KIEDF)

KIEDF provides a platform of revolving loan programs, and since 1994 has facilitated over $375 million of new financing via partner banks to more than 16,500 new and expanding small, medium-sized and micro businesses, creating and sustaining more than 60,000 new and existing private sector jobs.

 

Al Sanabel Catering Facility for School Meals in Migdal Ha’Emek

Al Sanabel is a catering business established to provide employment for single mothers who are below the poverty line. The catering factory makes healthier school meals for children who are entitled to receive a warm meal a day from the Ministry of Education. A portion of the profits from the business are fed back into the local community. The model is a replica of an existing successful profitable catering business in the Negev Bedouin community of Hura.

 

Kishor Winery – Supporting a Community with Disabilities

Kishor winery is located within the grounds of Kishorit, a home for life for adults with special needs in the Galil. It is a supportive community that provides a continuum of residential, social and vocational services. The winery employs a number of the members of Kishorit and all of its profit is fed back into Kishorit.