Social Impact Investment Initiative (Si3)

Si3 initiative by UJIA, is a cutting edge approach to philanthropy in Israel, providing an alternative method of repayable financing for organisations and enterprises delivering social change. Alongside our existing and ongoing grant work in Israel, these investments enable us to leverage our charitable funds further towards our social mission in Israel.

To date, UJIA has proudly completed several social impact investments in Israeli social enterprises over the previous two rounds. UJIA is delighted to launch its third call for proposals in 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, with a focus on:

Specific details of our preferred criteria and investment portfolio 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.

“The UK has been a pioneer in the development of the social impact investing market and Israel’s market is now also beginning to emerge. UJIA is offering an exciting opportunity, through using a model of returnable financing, each pound can be reinvested to enable scalable solutions in tackling UJIA’s mission of improving education, employment and community development in Israel.”

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.

Application Deadlines
Applications for cycle 3 opens: Monday 3 December, 2018
Last date to submit applications: Monday 14 January, 2019 by 11:00 PM

For more information on Si3, eligibility and further assistance, please contact us at si3@ujia.org

Frequently asked questions
What happens after applications are submitted?
We will then assess these details and contact you for further information should we wish to proceed to advanced stages. Applications will be reviewed and a shortlist will be asked to submit more details. This will include a meeting with UJIA personnel.

Who will decide?
UJIA’s Social Impact Investment Committee will review the shortlist and will make an investment decision during the second quarter of 2019.

Can UJIA invest in non-charitable companies?
UJIA can make an investment in a non-charitable company as long as its social mission is in line with the aims of the UJIA, that any additional private benefit not be excessive, and the investment clearly be for 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 and 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

UJIA Si3 Investment Portfolio
To date, UJIA has proudly completed several social impact investments in Israeli social enterprises that receive a financial investment, professional assist from UJIA staff as well as guidance from British advisers.

Jindas – Urban Regeneration in Lod
Founded in 2013, is one of the leading non-profit organizations in Israel dedicated to broad scale urban regeneration. Jindas’s work focuses in the Old City of Lod and surrounding neighborhoods, with activities built on a range of programme platforms including community and education, housing, economic development, tourism and environment.

Koret Israel Economic Development Funds (KIEDF) – Micro-financing for the Ethiopian Community
Established as an Israeli non-profit in 1994 to demonstrate that philanthropic funds could be used efficiently to stimulate economic development and employment opportunity in the private sector in Israel. Through a platform of loan programs, KIEDF has facilitated some $400,000,000 in new financing via partner banks to more than 18,000 new and expanding small medium and micro-sized businesses creating and sustaining more than 60,000 new and existing private sector jobs. Through its microfinancing fund, KIEDF will provide non-bank loans for micro businesses run by entrepreneurs of Ethiopian descent.

Games for Peace
An Israeli NGO that leverages the power and appeal of online video games as a platform for the promotion of tolerance and the reduction of prejudice and stereotypes between children. Games for Peace lays a foundation using school programming, for a shared society and help spark initial dialog between its communities in a way that will make Israel more pluralistic and united, to counteract negative stereotypes and mutual fear and distrust they aim to enable young people to interact positively, find a common ground and practice communication and cooperation.

Lev19 & Midbar19
Following a successful career at advertising agency McCann Erickson, Hana Rado has put her focus into setting up social businesses throughout Israel’s periphery as she started two initiatives.

Desert19 was founded in Mitzpe Ramon, providing high quality remote marketing, administrative and secretarial services. Desert 19 only employs women and has had a significant impact on the peripheral desert town of Mizpe Ramon. Lev 19 is a joint project between Hana Rado and the NGO, Hasdai lev that is positioned in Tzfat.

Lev19 was founded in Tzfat in the efforts of promoting employment in this peripheral city, by creating a business to provide remote accounting and bookkeeping services. Lev19 has a strong social element in providing much needed employment opportunities in the city of Zefat, as well as high engagement value, through the ability to visit the facility and meet the employees.

Kishor Winery – Supporting a Community with Disabilities
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.

Al Sanabel – Catering Facility for School Meals i Migdal Ha’Emek
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.