Social Impact Investment Initiative (Si3)

Si3 is an exciting 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 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:

  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.

 

***Applications open now!***

If you think that your investment fits the criteria outlined above, please first save this PDF form to your computer and complete it. Please return the completed form via email to si3@ujia.org.

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?
Thursday 21 December, 2017

Who will decide?
UJIA’s Social Impact Investment Committee will review the shortlist and will make an investment decision around May/June 2018.

For any questions on Si3 please contact Gaby Charnas at si3@ujia.org

 

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 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

 

A few examples to date

Jindas – Urban Regeneration in Lod
Founded in 2013, Jindas 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 neighbourhoods, 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
KIEDF was 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 microsized 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.

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.