Investing for the good of society

8/6/2019 Investing for the good of society

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InvestIng for thegood of socIetyW a hw Wal Iiiual rp

Antony Eiott, The FaiBanking Foundation

THE BIG SOCIETY FINANCE FUND


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PArt 2: sUMMArIes of tWenty cAtALytIc InvestMents 2

About NEStA

nestA i UK m ip xp w iai a l m

u maj mi a ial all. I wk i abl b

a wm, u b naial L, a i pa a

m axpa. nestA i a wl la i i l a ai u i wk

u a bl xpimal pamm, aalial a a im i

al-a mpai.

www.a..uk

About thE FAirbANkiNg FouNdAtioN

t aibaki uai i a ai ia uai a lpi

baki iiui imp aial wllbi i um a

b UK publi a a wl. ou wk i i pi wll-a,ip a iiul w ipu ai i pui aial pu a

b um. I 2011 aibaki Mak will b a pu

a a au wi lp um al i aial baiu.

About ipss Mori

Ip MorI i la, a b kw a mpai i UK

a a k pa Ip gup, a lai lbal a mpa. Wi a i

p i 64 ui u li b m piali kwl aw m

lbal pai: publi aai a, aii i a aki, mia

aluai, maki a a ula, um aiai a lal.

About thE SEriES

ti publiai i i a i a u wa w a la abu

ial im mak u Bi si ia u i u

au a i pial w.

Aso in the seies:

Understanding the demand or and supply o social nance, nw Pilap

capial

Twenty Catalytic Investments To Grow The Social Investment Market, nestA


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foreWord 3

One o the most pressing questions acing a developed country like the UK is how to put our considerable

resources to work in innovative ways to address major social challenges.

These challenges, rom social exclusion to long-term ill-health, and rom demographic change to climate

change, are growing. But the ability o our public services and civic society to respond is too oten

constrained by straitened public nances or by institutional inertia.

There is widespread agreement that innovative approaches hold the key: shiting our eorts rom treatment

to prevention, and replacing central control with the energy o empowered citizens and communities.

Social investment can help us achieve this. By nancing new approaches, increasing the diversity o

provision, and allowing money to be diverted rom the symptoms o social problems to their causes, it helps

innovation take root.

The governments enthusiasm or social investment, exemplied by their establishment o the Big Society

Bank, is to be welcomed. We are excited to see the realisation o a project envisaged 11 years ago when the

Social Investment Task Force began its ground-breaking work.

The Big Society Finance Fund is a practical contribution to this project. Working with Panahpur and UnLtd,

two o the UKs leading social investment charities, we have constructed a portolio o pilot investments to

demonstrate the kind o products and services that a thriving social nance sector could enable. Alongside

the portolio, we are publishing two substantial pieces o research, looking at UK investors interest in social

investment, and the demand or nance among social enterprises and the organisations that serve them.

We hope that the Big Society Finance Fund, through its portolio o projects and research base, oers a

helpul practical contribution to the development o the UKs social investment market.

As always, we welcome your thoughts.

Stian Westlake

Executive Director of Policy and Research, NESTA

April 2011

FOrEwOrD


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eXecUtIve sUMMAry 4

This report takes three dierent approaches to

identiying how the mass afuent (dened as

individuals with investment assets between

50k and 1 million) may respond to social

investment products:

1. Key drivers regression analysis has been

used to identiy statistically signicant drivers

o the likelihood o investing in social/ethical/

community investments.

2. Product testing our products (charity

bond, community business share issue, social

enterprise property und and social investment

und) were presented to the interviewees and

a battery o questions were asked to gauge

reaction. The reactions were analysed to

identiy statistically signicant dierences in theappeal o these products to dierent types o

consumers.

3. Motivations questions about motivations or

making social investments were developed based

on the ndings o the qualitative research. The

responses o the survey sample are clustered

to identiy other interviewees responding in a

similar way. These clusters are subsequently

examined to see how they respond to the

products and labelled accordingly. The clusters

labelled active interest and passive interest are

particularly interesting in terms o identiyingmotives or social investment.

This report presents compelling evidence rom

quantitative research, which when combined with

earlier qualitative research,1 shows that many o

the more afuent wealthy individuals (over 100k

o investment assets) can be motivated to try social

investments. A combination o research approaches

reaches the conclusion that the primary motivator

or this group is social/ethical values. They are

motivated by a desire or wealth to achieve a social

good as well as have the potential to produce areturn. There would be most interest rom this

group in the social enterprise property und and

the social investment und. They like the idea that

social investment will see their money recycled and

make charities/social enterprises more business-

like. The potential or a lower return or or the need

or social enterprises to work with government are

not a barrier to involvement. The overwhelming

motivation or becoming a social investor is that, aswith other parts o their lives, their wealth should

have a positive impact on society.

The report has more reservations in its conclusions

on those with investment assets between 50k and

100k. The evidence in this report shows that the

drivers are not homogeneous within this segment.

Key drivers relate to demographic and situational

actors to do with age, having children at home

and how the individual eels about their nancial

situation. There is a desire or novelty and newness,

which is not related to social good. Overall there isa sense that many o these potential social investors

are not particularly happy with their current

nancial situation. The charity bond and community

business share issue would generate greater interest

among this group. However, a product provider

should be cautious, as the evidence is that there is

complexity in relation to the diverse motivations

o this group. In particular, the need or control

over the specic charities/social enterprises

beneting and some lack o trust that social good

will result. These issues mean that social investment

products or this group are more dicult to present

appropriately. Further research and product testingwill be important to ensure there is not a mismatch

o expectations between the product provider and

this less afuent group o potential social investors.

EXECUTIVE SUMMArY


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reseArch MethodoLogy 5

Astudy o qualitative and quantitative

joint research into social investment was

commissioned by NESTA.

The study had two stages: Stage 1 was a qualitative

study to obtain the initial knowledge o the types oindividual and products that are likely to be important

in the growth o the market or social/community

investments. This stage comprised 26 in-depth

interviews with investors with more than a million

pounds o investment assets and existing social

investors, and three extended ocus groups with the

mass afuent. The eldwork period was between mid

November 2010 and mid December 2010. An interim

report was published by NESTA in February 2011.2

Stage 2 was a quantitative online study with a

sample size o 505 respondents having investmentassets o 50k to 1 million. The survey was

conducted by using an online questionnaire based

on the ndings o the qualitative stage. Four concept

products were tested in this stage, which had been

rened ollowing the qualitative research. Quotas

were set on asset amounts and age, to make sure

that a representative sample o mass afuent

investors was achieved. The eldwork period was

between end o January 2011 to the beginning o

February 2011. The quantitative study itsel has

been divided into three sections: regression analysis

to dene the characteristics o the mass afuent

with respect to interest in social investment (seeAppendix 5), the testing o our product concepts

and cluster analysis (see Appendix 6) to dene

consumer segments in terms o the motivations.

What is social investment?

The UK is acing new and changing social challenges

like climate change, an ageing population, and

chronic health problems. These challenges are

leading to increased demand and higher cost inpublic service delivery.

The UK needs to nd innovative ways o delivering

public services and addressing our pressing social

needs. Future services will need to prevent rather

than respond to problems, and will need to draw

on the experiences o innovative civil society

organisations, social enterprises and other non-

traditional providers o public services to do this.

Like commercial businesses, social enterprises,

charities and community organisations need to be

able to access nance and investment to deliver

and grow their services. Social investment is using

money to nance these organisations, aiming to

achieve a social benet and modest nancial returns

in the process.

Economic Background

This research is being conducted at a time o

economic uncertainty. In particular, the government

is in the process o implementing signicant

cutbacks. Many individuals during the qualitative

phase o the research drew a connection between

the interest in social investment and the planned

reduction in government expenditure. A question

was asked in the survey to give a sense o how the

economic condence o mass afuent investors

compared with the general population in January/

February 2011 at the time o the survey.

Forty-ve per cent o mass afuent investorsconsidered the general economic condition would

get worse in the next 12 months, 21 per cent that

it would improve and 31 per cent that it would

stay the same. Ipsos MORI uses these responses to

create an index o Economic Optimism (measured

as the percentage who think the economy will

improve less the percentage who think the economy

will worsen), which is calculated monthly or a

representative sample o the GB population. Figure

1 shows that the -24 score is slightly better than that

o the general population at around -29. Although

this is signicantly better than during the recession,it shows that the survey was conducted at a time

when the overall sense o economic optimism is

relatively low.

rESEArCH METHODOlOGY


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reseArch MethodoLogy 6

Figue 1: emi opimim Ix

Ip MorI eoI Ba: . 1,000 Bii aul a m

Souce: ru/Ip MorI Pliial Mi

The Ipsos MORI Economic Optimism Index (get better minus get worse)

40

20

0

-20

-40

-60

-80

Percentage

-24

-29

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Do you think that the general economic condition of the country

will improve, stay the same or get worse over the next 12 months?

-24 for survey respondents

Online fieldwork period28th January 8th February


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contents 7

CONTENTS

Pat 1: Ii lp i w wa i? 8

Pat 2: ti sial Im Pu 16

Pat 3: Miai sial Im i a bai 28

Pat 4: oall clui 34

Appendix 1: sampl pli aa abl 38

Appendix 2: K abl umma u pu 43

Appendix 3: Miai sial Im ial amwk 51

Appendix 4: clu aali ix 53

Appendix 5: tial appix i aali 54

Appendix 6: tial appix lu aali 57

Endnotes 60

Acknoedgements 61


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PArt 1: InvestIng to heLP socIety Who WAnts to do thIs? 8

T quaiai a u wauak am iiiual wi walaailabl i i pli bw

50k a 1 milli. ti up i ib i ipi a a ma afu.

t aa ( Appix 1 umma) wiia i bw iiiual wi50k 100k im a a wi bw 100k a 1 milli. t amapi i bw wup, bu a al ma ii k a a i iiial ii ii i a wa a ma b i.(Appix 5 i a xplaai aiialiqu u i k i.) a, w ub-m a bp paal i i p. La i p i will b w a wi ima bw 100k a 1 milli a mapppia pi p ik apial ama ial pi/aii qui.

t aiiall iia ifu a bi m p w qui b wi 50-100k a 100-1 milli im a:

1. How likely would you be to invest in anancial product that, as well as giving you

a comparable return on your money, has apositive impact on society, helps a good causeor has other ethical or benecial eects? (Aninterest in investing in a way that benetssociety.)

ti qui a b aull w apial i a bi ak aiu i ai a ial um.

2. How satised would you say you are with youroverall nancial circumstances? (Financial

wellbeing.)

Qui 2 i al qui ak ala aial wllbi. ti i a ppui ai a a uai i

aial wllbi ma afu wi aiw uai wa l ial imma pla i iai aial wllbi i UK ppulai. I i ul b ai, i ul ifu wa i wi

ial im i p pial iali. wal iiiual, impli i likl ifu i all aialwllbi.

1.1 Investos ith beteen 100k and 1miion o investment assets

t k aaii i up mpawi up wi 50k-100k ima a:

Older m likl b 55.

Lie satisaction, nancial satisaction andnancial wellbeing m likl il.

1.1.1 what i dive these peope to invest ith asocia objective?

Socia/Ethica Vauest aiuial am a ibu

ial/ial alu a illumiai. t a:

W ii, I wul lik m m m a wll a pi m wi au.

M im pli f m ialalu.

I lik b il i lal mmuiaiii.

I i u au -i ppulaia wi a am, wiu a i a ubaial ppui im pu a appal wiial alu.

PArT 1:

INVESTING TO HElP SOCIETY

wHO wANTS TO DO THIS?


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9

iu 2 illua i likli

ii i a pu wi ial/ial w a iiw a wi am a a iiiual ial/ial alu a i a.

I i ii wi a ial pup ii wi i ial iw f

i mmui ai a a i m

i ai a pup b u.La i p w xpl u wamia i bm il, i.. paiipa i ial im mak. Forthe wealthier mass afuent, it is already clear thatthey are putting their social/ethical values intoaction.

PArt 1: InvestIng to heLP socIety Who WAnts to do thIs?

Tabe 1: siia i likli i wi ial/ial pup

regession Vaiabes (100k+ asset goup)

t x p a wi am (labll sial/eial valu):

W ii, I wul lik m m m a wll a pi m wi a u

M im pli f m ial alu

I lik b ail il i lal mmui aiii

A p

reative contibution

65%

35%

Figue 2: sial/eial valu a i ial/ial im ( 100k im)

Social/Ethical Values and How likely would you be to invest in afinancial product that has social or ethical benefits?

Variable Q4. To what extent do you agree or disagree with the following statements?

48%

37%

17%

48%

54%

57%

3%

10%

26%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Disagree (62)

Neither/nor (155)

Agree (89)

54%

62%

12%

46%

34%

67%

4%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Disagree (28)

Neither/nor (108)

Agree (170)

43%35%

25%

47%57%

55%

9%8%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Disagree (76)Neither/nor (113)

Agree (117)

I like to be actively involved in local community activities

My investment portfolio reflects my ethical values

When investing, I would like my money to do some good as well as provide me with a return

Neither likely nor unlikely/Fairly unlikely to invest Fairly l ikely to invest Very l ikely to invest


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10

AgeImpal, u wal ma afui a m likl i wi a ialpup. iu 3 illua iia a likli i.

ti m b likl b ifu bai aial al. t u 40 a likl a al lai amil aial ui,quali li, ii al a uppiil uai. 55, aialal a il mia b ji lia im wiu ai w abuim. A a ila wi a iai il. hai il u a 18 lii a m ia likli ii im wi a ial pup. Ii bau p u pplua u ik abu uu ai?u a wul b qui uam ull a a bi impa.

Whatever the reason, or those that are ortunateenough to be among the wealthier mass afuent,

a more positive reaction will come rom thoseinvestigating investments with a social purposeearlier in lie.

1.1.2 Dives o Financia webeing and the oeo Socia Investmentt a l w aiiall iiaifu ii aw qui a w ai a p i i up i wii all aial iuma.

A. Satisaction ith ho investments aemeeting fnancia goasti aiabl i m a wi a impampa wi ifu (aiaiwi kwi w u m i ulimali blw).

All p a a la llwi al w i tabl 3.

t i w a aial wllbi ilkwi w u a imi mi al. gi muimpa al, i will b impa p ial im i u a wa a i ai wi mi al a la mak i aim iial l likl.

ti i paiulal impa i ial imi iw a pa a im pli b apial i a pp pilap a

PArt 1: InvestIng to heLP socIety Who WAnts to do thIs?

Figue 3: A a i ial/ial im ( 100k im)

Age and How likely would you be to invest in a financial productthat has social or ethical benefits?

42%

29%

50% 7%

57%

54%

14%

26%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

55 or over (139)

40-54 (110)

Under 40 (57)

Neither likely nor unlikely/Fairly unlikely to invest Fairly likely to invest Very l ikely to invest

19%

Tabe 2: siia i aial wllbi

regession Vaiabes (100k+ asset goup)

hw ai a u wi w u im a mi u aial al?

hw ai a u wi u u a im pu i m kwi w

u m i ulimal i?

reative contibution

71%

29%


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w aii. The potential social investor may needto be helped to achieve the goal o using wealthor a social purpose without having a sense oreducing the likelihood o achieving the important

nancial goals contained in Table 3.

B. Ho satisfed ae you ith you cuent angeo investment poducts in tems o knoinghee you money is utimatey invested?Alu l impa a piu a,l, i wul a aial wllbii a i i ai wi ulimaim. ti i a ii aiabl biia, a impliai i a pua a paqu a ulima imi a pli a likl b ulpul wllbi i up. I m likl b a a, m i, ai ial/ial pu i pli will ia wllbi a pli a. Giving thesocial investor a real sense o understanding the

ultimate social enterprise/charity that is using theunds and how the money is being used is likely tohelp improve nancial wellbeing.

1.2 Investos ith beteen 50k and 100ko investment assets

t k aaii i up mpawi up wi m im a ia a:

Younger m likl b u 40.

Lie satisaction, nancial satisaction andnancial wellbeing m likl lw.

Investing with social impact xpa i i i .

11PArt 1: InvestIng to heLP socIety Who WAnts to do thIs?

Tabe 3: iaial al ( 100k im)

ej li a im wiu ai w abu im 87%

supp m il() uai 26%

Mak u I (a m amil) a aiall u 73%

Imp m quali li 57%

sa u m i al 34%

Tabe 4: siia i likli i wi ial/ial pup

reative contibution

20%

17%

14%

9%

9%

8%

8%

8%

7%

regession Vaiabes (50-99k asset goup)

A i mbiai wi amil ( blw)

amil (ai ki u 15 a l a m)

saiai wi all aial iuma

diia xpiu abli u li u li

t x p a wi am:

I lik iia w im ppuii a pu

I lik b ak u w pu/i a w i

I am i i aial ma

cu pal aial al a ej li a im wiu ai w abu im

saiai wi im mi pal aial al

Ll kwl abu im a al ial, mmui ial b

caiabl rai (ai ai pa 12 m ii b aual ul im)


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1.2.1 what i dive these peope to invest ith asocia objective?t a ma m a l walma afu up a la m bi likl i wi a ial pup. t a i

a, mpa wi w up wia i ll iabl a. t bi:

1. Age (with children) wi il am bm l likl i iall/iall a l.Age (without children) wiuil a m a m likl iiall/iall a l (i.. 40).

2. Financial satisaction a

ll aiai wi all aialiuma, m likl b ai.

3. Discretionary expenditure enabling you tolive your lie m likl i a lw ll iia xpiu (iul ip).

4. Early adopter m a p ii i xpli w im, m likl a i.

5. Having nancial security in retirement as agoal m a i l-m aialal i p, m likl a wiial/ial im.

6. Portolio meeting nancial goals i iim pli m iaial al, m likl a i.

7. Know about social/ethical investments

m p l kw, mlikl a i.

8. Giving to charity as a proportion o income a u aiabl i i m likl

i ii.

Age and chiden at hometi i m impa a, a ilaiip wi likli i iall/iall i mplx. I la li a, bual pi impa iiiualiuai. wi il a m, i ipibl a a i i iall/iallw u i ak b aa a i il a. t amu im a i paiulal ubaial

am i up, piall w aki iau uaial, ammai a il a bm l.

wiu il a m, ial/ial im bm m pibl i. I i iul xplai a i pm m aii.hw, i impa ma ma a auai pl iiwi a ial pup ul b ui u.ti will p w pi up i i k lpm ialim.

Financia satisactionsi i i m aiai wi allaial iuma ma i ppl xpl ial/ial im.t up wi iabl a 50k-100k a a wl a lw ll aial aiai a up wi mim a.

Figue 4: oall aial aiai a i ial/ial im (u 100k im)

Financial Satisfaction and How likely would you be to invest in afinancial product that has social or ethical benefits?

22%

31%

62% 16%

47%

42%

21%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Neither nor/fairly/very dissatisfied

(58)

Fairly satisfied

(108)

Extremely/verysatisfied (33)

Neither l ikely nor unlikely/Fairly unlikely to invest Fairly likely to invest Very l ikely to invest

30%


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I ai i ll all aialaiai i a impliai a aiiiual a ai a ai ll l i a ( ali a iaial wllbi3). I m likl a i aallw p i ba iuu a ial a ial im.

Discetionay expenditue avaiabe to ive youiet a iia a i ppulai, i i iia xpiu, l likl a i ial/ialim. ti i i b w la a a lw ll iiaxpiu m likl b im blw55k p.a. ti iaiai appa maiil i a i im wi a ial/ial mp. t impliai i iuiii a wi lail lw ima (50k-100k) w l a a iiia xpiu, ia l i a am w l a lw iia im.

ti i m iul pi aa ip; i wul qui pal iiwwi iiiual i m ua i i i ial im.

Eay adopteeal api i a a, i m aiuial am, wi wi iiiual am likl a.

I lik iia w im

ppuii a pu.

I lik b ak u wpu/i a w i.

I am i i aial ma.

ti ifu i pii i a l ial/ial im i a aai.hw, i i i a up wila im a w a i i pu bau i ial alu,a a i w.

Having a goa to etie ith fnancia secuityt al-ba aiabl a i iia iai a al j li a imwiu ai w abu im. Iwi i aiu will b aki a m l-miw im pli. t a mlikl wa i b i m ial/ial a am im a pui a u (a aa al).

Financias goa not being met by existingpotoiot impliai i aiabl i a mi a i m i wia ial/ial im a pli

mi i aial al. Pibl al ia m im ul a ial/ial a i ul a wi ixii pli.

Kno about socia/ethica investmentti ma m a biu pi, bu kwl alwa la a i il.I i ia, a kwl i laii b m ili i akiup a ial/ial im.

Chaitabe giving as a popotion o gossincometi a mall ibui la umb a a w aiialliia. Aai, i i w a i a

Figue 5: Pi aailabl iia xpiu lw iia xpiu a i ial/ial im (l a 100k im)

Perceived Discretionary Expenditure and How likely would you beto invest in a financial product that has social or ethical benefits?

36%

31%

45% 18%

49%

55%

20%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Scoring 9-10 (22)

Scoring 7-8 (110)

Scoring 1-6 (67)

Neither l ikely nor unlikely/Fairly unlikely to invest Fairly l ikely to invest Very l ikely to invest

22%


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au lail lw im aup, wil bi iia iim up. A ial/ial alua au a a i i up,i i l a a iia a aluiimiai m w ii ial/ial im.

Dives o fnancia ebeing and the oe osocia investmentW ii aial wllbi iwal m, l a iiam u i aiai wi w im pli i mi aial al.ti a i a wi m afu up.t a iia i wi al m afu up ib i si1.1.2 a a a mpai aiu m i al. t impliai

ial im i am i a i i i iwa pa a im pli a w ki wal plm, i lp ia wi xii iia aial al.I will b l a ia bau ial/

ial alu i a pima i ialim i up. Kwi w mi i au a i f amwa l piia appa aialmaam mpa wi m afuup.

ti a i i amu wal ul im b ai all aial wllbi iup. ti m a wi ab a lail lw ll im, ia i ll wllbi.4

1.3 Concusions on the key dives oindividuas to be socia/ethica investos

1.3.1 Investos ith beteen 100k and 1 miiono investment assetsWii i up, i a m iiiual w lal wa i wal m a wll a pi a u. ti

Figue 6: eal ap a i ial/ial im (l a 50k im a)

Early Adoption and How likely would you be to invest in afinancial product that has social or ethical benefits?

Variable Q4. To what extent do you agree or disagree with the following statements?

35%

29%

16%

51%

51%

49%

15%

20%

35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Disagree (92)

Neither/nor (70)

Agree (37)

53%

34%

20%

41%

60%

50%

6%

6%

30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Disagree (32)

Neither/nor (47)

Agree (120)

38%

26%

28%

52%

63%

47%

10%

12%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Disagree (21)

Neither/nor (43)

Agree (135)

I am very interested in financial matters

I like to be one of the first to take out new products/services and try new things

I like to investigate new investment opportunities and products

Neither l ikely nor unlikely/Fairly unlikely to invest Fairly l ikely to invest Very l ikely to invest


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ial alu ul mai ml ixii ii i im plia/ b bi il i mmui aiii.

A will b a impa a i mii

likli ii iall/iall. Wiupulai xa a, i i la ai i i a u 40 a m likl w iiial i i ial/ial ima 55.

I ma b impa pii ial imi x aial al iiiual. xampl, i a iallma m b i paial fi wi makiu m amil a aiall u. Piali ma lp l i fi.

ti ul b ai b paai a i wal ial im pup ii u all u xpai m aim pli. I aii, i upi i impa b a wi w im i bi i ulimal.

1.3.2 Investos ith beteen 50k and 100k oinvestment assetst piu i a i i ial/ial im i il i iup. I i a mu m u wima ifu mbii a a ii ial/ial im. t i ilua, ai il, l-m a -maial wllbi, bi a al ap, ai al a aiall u im, xiipli mi aial al, kwl ial/ial im a aiabl ii.t m aaii a i a, m likl a mak a im.

t i a impliai a ii iia i will mak i m iul mi wa will la im. I

al mak i a l m iul pii im a i i i ia.

t i will alm b a iia a a p. t lak a a lai ial/ial alu i a paiula i a k iia a ialim i ial a i .t a i m ai will b m likl b pi, bu i wa la impa i iia aiabl.

A wi wali up, m impai l-m aial wllbi i x wi a ai iim a mi i aial al.

t a wi m afu up i ai i a iia i wllbi ba wi ulima im i pli.

A l a wul b ak wi iup mak aumpi abu a i i il wi ial im.


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T maial p iiwwa lp ui u wkp a 26 iiw a pi

qualiai imai. t bji wa u iial i p pu all

wi il ii a lw a u ik a wul b xp m a aaim pu. I u api alw u i mak a ibui a ial . t bji maialp wa abl iiw quiklai a ik, u, liquii, x am a ial/ial b.ti wul abl mpai b ma

imi aai w likl iiw wul b i. t qui wla au uai, appal, likli ii a amu im. t aa iummai a pu i Appix 2.

t llwi i ail w i up iiw i m m a u pu. I mak mm w i wul u imai.I mm w im aiw a pilap, aial im aw aii. iall, i iu p ax ii.

PArT 2:

TESTING FOr SOCIAl

INVESTMENT PrODUCTS

PArt 2: testIng for socIAL InvestMent ProdUcts 16

Chaity Bond

A househod name chaity (e.g. Banados, Cance reseach UK, Dogs Tust, o Scope) is oeingthis bond.I uuall u i impa wk m a mixu publi ai a m m ui;bu i im a a m m m, wil i a ail i; a w ai qui a maa i a fw.

risk: Lw ik pam i likl i ai l i bu i uaa

retun: ix u a i 1 p blw a bak ai b

Tem: 3-5 a

Investment range: 500+

why is this bette than donating money to the socia business?

t ai b pi ai wi a alai pi bwi m bak.

raii m m ai b ma a ai a maiai a i iquali i i biai.

I i a plam ai a a ill u ai wk i lm.

whats in it o the investo?

yull a x aual i pam.

yu a a i ai a laim i ai ai i a b a-ax u i a ax pa.

2.1 Chaity Bond


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t ai b a p iiwwa wll-u wi 85 p i i ala ail a ua. - p u i a la ail appali a 34 p ai wul i maki a im,

ubj aia aw uaiqui.

Wa i iiw appali:

Investment etun: 39 p u im u appali, pi i bi 1p blw a bak ai b.

risk to capita: 68 p u lwik lik ai ai bappali.

liquidity/access to capita: 46 p u 3-5 a m appali.

leve o engagement ith chaity beinginvested in: 75 p u i bappali ba aial p.

Socia, community o ethica beneft: 79p u p uppi aai i i wa b appali.

t w ma aiial ibw i m uppulai:

Investment assets m likl i i50-99k a l likl i 300k1 milli.

Moe ikey to invest ethicay i upu i a ua a lik u, liquii, ll am aial/ial b.

Unde 40s m likl i a

lail pii abu all au,ilui ll am a ial/ial b.

with chiden at home m likl ia paiulal lik u, ik aliquii.

Ove 55s l likl i a ipaiula, lik l liquii/a apial a ial/ial b.

rua ial/ial b wa lappali.

Time o chaity a i im iappali a a m likl i, a

a i im a m likl ak ppi pii. t wa ail il i ai/mmuiaiii im u,ik apial, ll am a

mmui/ial b appali. twi ilm i ai/mmuiaii ap ai b l appali.

2.1.1 Amounts o investmento 34 p a la ail likl i, 85p wul i up 5,000. Ima up 20k 50k a.

2.1.2 Tax incentivesGit Aid on the donation o inteest: 41 p

u i wul ua m i. Paiulal lik b u 40, wi il a m a/ iiim ai/mmui. I wa lik b ala likl mak a ial/ialim.

Inteest exempt om tax: 71 p u i wul ua m i.Impal, all up lik i iiquall, i.. i ii wul uam l likl i.


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t mmui bui a iu ap iiw wa wll uwi 86 p i i a la ail a ua. -w p u i ala ail appali a 32 p ai wul i maki a im, ubj aia aw uai qui.

t p a alm iial ai b.

Wa iiw u appali:

Investment etun: 52 p u im u appali, pi i bil 1-4 p iial im a i ik im.

risk to capita: 28 p u iik im lik il u

mmui bui b appali.

liquidity/access to capita: 40 p u pial 3-5 a m wi a pibili wiawi apial b appali.

leve o engagement ith communitybusiness being invested in: 63 p ui b appali ba aialp.

Socia, community o ethica beneft: 71p u p uppi a

ai i i wa b appali.

t w ma aiial i i up:

Investment assets m likl i i50-99k a l likl i 200k1 milli.

Moe ikey to make socia/ethica investment i up u i a uaa lik u, ik, liquii, ll am a ial/ial b. t

wa u a iiaii i p im.

Unde 40s m likl i, mappali, lik ik, u, liquii, ll

2.2 Community Business Shae Issue

Community Business Shae Issue

A oca sevice, business o aciity is aising investment om the community to impove its seviceto the community.exampl ilu lal liu , lal p, a libai; u a xpapai, p i bi l l-w; al bm mmb aiai u a -pai lal ml, lik J Lwi, a a k buiii.

risk: A i ik im lik il u mmui bui

retun: tpiall a aual ii w 1-4 p iial im

Tem: tpiall 35 a, bu apial ma b wiawabl

Investment range: Miimum 50, maximum 20,000


ti i a mmui bui a im imp i i bu i aimi a a m u i mmui i.


t mmui bui i plai pa a aual ii i i.

I ma b abl ll i a bak a a alu iu.

I a lu im i bui a u bm um i lp bui u.


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am a mmui/ial b.

Ove 55s l likl i a ipaiula, lik l ik, ua liquii/a apial.

t i l plaiai iw bwu 40 a 55 am a mmui/ial b.

Time o chaity a i im ai w m likl i a, ipaiula, u ll am ammui/ial b m appali.t wi ilm i mmui/ai aii puappali a lik im

u, ik, liquii, ll ama mmui/ial b lappali.

2.2.1 Amounts o investmentti-w p p w a laail likl i. Im amu wpa bw l a 500 a 20,000.

2.2.2 Tax incentivesThe abiity to oset any capita osses

against tax bi up to a imit: 34 p u i wul ua m i.ti ii wa paiulal lik b u40, wi il, wi imab 105k a m likl mak aial/ial im.

The inteest o dividends you eceive aeexempt om income tax: 59 p ui wul ua m i. tiii wa quall lik b all up,i.. impliai i a i ii maua m l likl i.


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Socia Entepise Popety Fund

A poessiona popety investment fm is aising investment to enabe socia entepises to accessft-o-pupose pemises. This i impove the deivey o sevices to peope in need and geneateeasonabe etuns o investos.

Our Childrens Centre owns a run-down building and we dont have the money to keep it in topcondition. An ordinary bank would be unlikely to give us a loan to maintain our assets. This undinvests in businesses like ours who own property.

risk: Lw ik i a ppi a b l pa i u

retun: Aimi 2-3 p blw mmial pp im u

Tem: 5-7 a

Investment range: Miimum 1,000


M i maa b xpi pp i w a ai b alu m ial pi a i.

sial pi aii l mall ai a mi u b pp al bauuaii i lw.


t im i lw ik bau mmial pp a uuall b l pa i.t u will publi ail all ial pi i a pi im , a a

p ial impa im a a.

t ial pi pp u a p iiw wa wll-u wi87 p i i a la ail a ua. - p u i a laail appali a 30 p ai wul

i maki a im, ubj aia aw uai qui.

Wa i iiw appali:

Investment etun: 41 p u im u appali, pi i bi2-3 p blw mmial ppu.

risk to capita: 53 p u lwik wi ppi bi l pa

i b appali.

liquidity/access to capita: 29 p u 5-7 a m appali.

leve o engagement ith socia entepisebeing invested in: 60 p u i b appali ba aialp.

Socia, community o ethica beneft: 66 p u p uppi a ialpi i i wa b appali.

t w ma aiial i i up, a aiial i bim a:

Income ess than 55k p.a. l likl i.

Moe ikey to invest ethicay i up

u i a ua, w m likl i a lik u, ik, liquii,ll am a ial/ial b.

Unde 40s m likl i a lik

2.3 Socia Entepise Popety Fund


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u, ik a liquii.

with chiden at home m likl ia lik u, ik a liquii.

Ove 55s l likl i a ipaiula, lik l u, ika liquii.

Time o chaity a i im i appali a a i ima m likl ak ppi pii.ti i x likli i.t w a ail il i ai/mmui aiii ll am a mmui/ialb appali. t wi ilm

i ai/mmui aii ap ial pi ppu l appali.

2.3.1 Amounts o investmento 30 p a la ail likl i,54 p wul b ppa i l a5k, w, la amu a up ma 100k.

2.3.2 Tax incentivesThe abiity to oset any capita osses

against tax bi up to a imit: 28 p u i wul ua m i. ti ii wa paiulal lik bu 54, wi il, iim qul ai/mmui a m likl mak a ial/ialim.

The inteest o dividends you eceive aeexempt om income tax: 54 p ui wul ua m i. tiii wa quall lik b all up,i.. impliai i a i ii ma

ua m l likl i.


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Socia Investment Fund

A und to invest in going socia businesses that make pofts and hep meet socia andenvionmenta needs.exampl im mi ilu: aia bui u a cadi dii cla;cmmui ap bui u a hct gup; ala bui u a a up gP ui. ti i a im i a u maa b a wll p aial aiai.t u ial bui i i a u a lp buiw i aiii a impa.

risk: hi ik im i wi bu u bui

retun: 2-3 p m a a bak ai au

Tem: t im a b a ia a k bk

Investment range: 10,000-250,000


sial bui ak a mmial appa akli ial a imal , ii i i wa upp i iipli.

Ii i u u allw ppl w wa i m allw i m b maa b xp w a a b aial pma a likl ial impa.


t u a aki iia ik b ii i w, bu xp lw u bau ial impa bi a.

t u i pa a publi i imai i pii ula aui imai aial pma a ial impa.

t ial im u a p iiw wa wll u wi 85 p i i a la ail a ua.- p u i a la ail

appali a 26 p ai wuli maki a im, ubj aia aw uai qui.ti wa pi miimum im bi10,000.

Wa i iiw appali:

Investment etun: 66 p u im u appali, i wa iba 2-3 p m a a bak aiau, bu ik wa ib a i.

risk to capita: 22 p u iik appali wi im i wi buu bui.

liquidity/access to capita: 38 p u a au im bappali.

leve o engagement ith socia entepisebeing invested in: 59 p u i bappali ba aial p a mmial appa akli ial aimal .

Socia, community o ethica beneft: 67 p u p uppi a ialpi i i wa b appali.

t w ma aiial i i up:

Income ess than 55k p.a. appaliall, a likl i, ik apial ilail uappali.

2.4 Socia Investment Fund


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Income above 55k p.a. ik apiallail appali.

300k to 1 miion o investment assets u ik ll lail l appali.

Moe ikey to invest ethicay i upu i a ua, w m likl i a lik u, ik, liquii,ll am a ial/ial b.t wa u all mp l likl i iall maia al a i iw.

Unde 40s m likl i a lik u, ik, liquii, am a ial/ial b. rlail m pii

am a ial/ial b a ial pi pp u.

with chiden at home m likl ia lik u a liquii.

Ove 55s l likl i a lik l u, ik, liquii, ll ama ial/ial b.

Time o chaity wi ilmi ai/mmui aii u ialim u lail l appali, wl likl i a w l likl ik, liquii, am a ial/ial b appali.

2.4.1 Amounts o investmento 26 p a la ail likl i,65 p wul b ppa i miimum im bw 10k a 15k,w, la amu a up 50k-75k.

2.4.2 Tax incentivesCan be hed in an ISA: 47 p u

i wul ua m i. tiii wa paiulal lik b u 54, ii im m qul ai/mmui a m likl mak a ial/ial im.

The abiity to oset any capita ossesagainst tax bi up to a imit: 37 p u i wul ua m i. ti ii wa paiulal lik bm wi 300k-1 milli ima, wi im 105,000 p.a.

a u 54.


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2.5 what moe inomation oud investosequie?

A qui wa ak iiw abuw wul b m likl i

i w i bak/imai pi ial um. t iiwamu im a ll im

i a aw. t wa m i bak m am up a wpii abu pu, i.. bakwul m pi u uam ala ili i.

tw u qui w pu iiwlai m imai a ai. t

Figue 7: u imai pi maki ial/ial im

Figue 8: su ai ial/ial im

0 10 20 30 40

Percentage

What more would you need to know about these types ofproducts before you would consider investing in one?

More information on returns, performance,

financial forecast, track record, history of

performance

More information on charities involved,

percentage of money going to charity,how it helps the charity

More information about risk

analysis/assessment and protection

More information about provider/

background on those managingcompany/funds

24%

14%

14%

12%

0 10 20 30 40

Percentage

To whom would you expect to turn to first for further information

about these products?

Would turn to an IFA for further

information and this did not vary

according to income or investment assets

Would consult financial websites

Would consult websites of financial

providers

Would consult staff in banks, building

societies, insurance and life and pensions

companies

Would turn to family, friends and

colleagues

38%

25%

8%

5%

5%


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aw a ummai i iu 7 a 8. tk aa m imai la aialu, aii/ial pi. tk u aial ai ial/ialim w IA a aial wb i.

2.6 Is socia investment phianthopy,investment o something ese?

ti i a impa qui a umb a:

Will ial im la l mbi aailabl aii ia paailabl aii?

I i iw a pa a im pli,ui all u pli?

I i a w p wal allai?

t quaiai a la mu ii i ma. t llwi

abl i pli w p ikabu pu ba ai xpml ail likl i.

e llwi pi xampl pu, w i iw a wi pa ap wal wul b pl i ial im.

all pu, a la i iiw iw pu a a wp aii, ii m pilap a

im.

t charity bondwa iw a a pilapiaii b 46 p a w likl i.

t community business a iu a ial pi pp u w i aimila wa wi . 40 p a a w p, .33 p a im a . 27 p apilap.

tsocial investment undwa iw ml a a im wi . 40 p aim, . 33 p a a w p a . 28p a pilap.

t ampl iz i la u makma bai i bw iw wi i ll ima. I al, wi m a 100k im a a m likl iw im a pa i pilapi aii.t ial im u i a xpi w iw i imila al im a.

t mi iu i paiulal impa pi pu. I i b p pu a a im wi a lw ui ai ial ora w p wal plm, ali im

u a pilap?

t iim p, hw iiiual bmial i,5 xpl i iu i lai iki i w iiiual(m a 1 milli im a). Iwa ii b a w ama a mmim ial im wiail i i a a w p walplm.

ti quaiai u xpl

ai iw pial i a bm il. I i a impa aa u a a pu a p pial i a i m wipaam

Tabe 5: Im, Pilap a nw tp Aii

which o the ooing best descibes ho you think about this poduct?

Charity bond Community Social enterprise Social investment

(176) business share property und und (131)issue (160) (149)

Pa m im pli 16% 31% 34% 42%

Pa m aiabl/pilapi aii 46% 28% 27% 25%

A w p aii 38% 42% 39% 33%

Base: rp w laim a /ail likl i i a pu


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2.7 Concusions

t ai iiw pua a m imilai a i a i, xampl wa a i ll i

a pu abu:

ea uai: . 85 p

Appal pu: . 40 p

Likli ii: . 32 p (. 26p sial Im u wii miimum im)

t aw qui a bii u p b a k iia i

i all u pu aw likl ail likl qui How likely wouldyou be to invest in a nancial product that, aswell as giving you a comparable return on yourmoney, has a positive impact on society, helpsa good cause o has other ethical or benecialeects?A lki a pu, aaw ail likl w iialm likl pu appali. ta aw b a i likl ulikl w m likl puuappali.

spi up a w il ia pu w a llw:

Unde 40s u pu lailappali.

Ove 55s u pu lailuappali.

with chiden iving at home u pu lail appali.

Giving time to chaities and/o ocacommunity activities ii a

m m w all m likl pu appali a wa u a i il.

t a lail w pi mak abu iiiual pu. tabl 6 w a p im u, ik apiala liquii a i li wi wa a w p iiw.

t p ll am ai, bu iall a appal i a bi i a

60 p . similal, ial, mmui aial b appal i i ai m 66 p sial epi Pp u 79p ai b.

t au pu a i liwi ik/u a liquii pu.I m pial i up llwi ummai i.

Chaity Bond/Community Business Shae Issue lik lail m b wi lw ll im a a lail l b wii ll im a.

Socia Entepise Popety Fund/SociaInvestment Fund wi lw im(blw 55k p.a.) w l likl b ii maki a im.

oall i a ba i a

Tabe 6: rp pu au

Ho oud you ate each o the ooing poduct eatues in tems o thei appea to you pesonay?

Very/airly appealing Investment Risk to capital Liquidity/ Level o Social,

return access to engagement communitycapital with social or ethical

enterprise/ beneft

charities beinginvested in

cai b 39% 69% 46% 76% 79%

cmmui bui a iu 52% 28% 40% 63% 71%

sial pi pp u 41% 53% 29% 60% 66%

sial im u 66% 22% 38% 59% 67%


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w a pu p ul b a i u m.

Tax Incentives pu i wa la a

maki i/ii im axwul b a iia mia a a la mu i i maki aial/ial im.

sial Im u, abili l im i a IsA wa iw a mpii uam.

Bi abl a apial l sial Im u aai ax bill up a limi wa appali m a a i

iiw a paiulal lik b wii im a a/ im.

ti ax ii wa lik i lai cmmui Bui sa Iu (34 p )a sial epi Pp u (28 p).


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PArt 3: MotIvAtIons for socIAL InvestMent the trIggers And BArrIers 28

3.1 Theoetica Fameok

I Appix 3, a iw i pi aami bai ial amwk.B uai miai iiw

i lai maki a ial im, i im likl a ii a b lp ua i p im. raiala i ii a b bu abu bpuai a uai ampai li fi pi piimai. hw, baiual i aw a ii au a mallpa aual baiu a.

ti i i miai iiw i x impulimiai m a abi (fxi) m,i aii fi u. t impa i appa i pli iiiai a baal b wk tal & sui.6llwi a uai ium, i ma b pibl i iaiu i u a wa a abl bii b ak.

Impuli m ilu u mia bli, uai, l-ai,l a ui. habi m ilu bai (wa i i) a mal (wa

iki abu i) abi. t miaiqui ilu i u w aw m qualiai a a u ki ai mi i x ial im.

ti ial amwk abl lpm ii a buai i mial p aabi mai. dlpi appama b uial ial im makai i pial.

3.2 Empiica Anaysis

A up 13 qui w ak iiw lai miai maki a ial im. t qui

w i m qualiai pa a. t p w aal lu iiw, a wi imilamiai m up. t al wpaiula miai m wii i up. llwi upi lui m a i a am af ai up pu.I i ia up a iili ai pu a wail iia. ti i a fi iabl wk a w i qualiaipa ii pial i abai a a miai iiiual.t miai ai b ii iaali abl lai impa bii.

t miaial lu w ii,wi a b all: Ai I (39 p), Pai I (35 p ) a nobiu I (27 p ). ea aiubaial pa ampl. t a iii a a b i Appix 4. tAi I up a b ub-ii i

ab a blw 100k im a.

t up a iil i im ai iiiual pu. tmiai up a iblw. all u pu p iiw, Ai I up waiial m likl all auappali, i.. ik, u, liquii, ama ial/ial b.

I xplaai a llw, iiial

iai i i a wa i uli miai, .. iiiual i mia imp uai ial im.

PArT 3:

MOTIVATIONS FOr SOCIAl

INVESTMENT THE TrIGGErSAND BArrIErS


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29

3.2.1 Motivations o individuas ith an activeinteest in being socia investosiu 9 ummai k miai ai i up iiw. tmiai a b w w lai all ppulai. ta a mall, bu piall impa, umb i bw wi ima 50-100k a wi ima bw 100k a 1 milli; aili.

Engagement ith the Socia Entepise/Chaityti i mia Ai

I up wi w miai quiai imila p.

Being able to be personally involved in thecharities, causes or projects being supported,e.g. volunteering or the potential to bedirector would be an incentive or me toinvest.

I would like to be able to visit the socialenterprise or charity and meet themanagement.

B am i a bli au. t i a pibilia impl kwi a pibiliixi a a a aki m up will

mia pial ial i. t u100k im a up i m lmia b am, iplaiiabl uiam. ti maa i a m likl ak upa ppuii bm il. Mwk wul b ii likbw aual/pial ilm a likli i.

I i lw p w miaiqui a iiui PaiI up m Ai I up.eam i a mia m

il wi ial im.

I i Ai I up a i m liklala b ii im a/ m a m m aii/lal mmuiaiii.

I x i a miai i i w a wi 100k im a a iial mlikl i im a m m a wi l a 100k.

100k im a up ii likl a i mia i lik ial/ial alu a a i i m i m likli bi a

PArt 3: MotIvAtIons for socIAL InvestMent the trIggers And BArrIers

Figue 9: Miai sial I (50-100k im a/ab 100k im a)

50-99k asset group

TEngagement with the Social Enterprise/

Charity

T Early adopter

TRe-cycling social investment

pot is positive

T/BChoice of Charity/SocialEnterprise is important

T Economic environment leads to need forsocial enterprise

TSocial investment encourages business-like

behaviour

B

T

T

T

T/B

T

T

T/BBe sure that social good will result

100k+ asset group

Engagement with the SocialEnterprise/Charity

Early adopter

Re-cycling social investmentpot is positive

Produce evidence of social outcomes

Economic environment leads to need forsocial enterprise

Social investment encourages business-likebehaviour

1

2

3

4

5

6

7Tax incentives could make a

real difference

Motivations for Social Investment: Triggers and Barriers Active Interest


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30

ial/ial i. t pial ima b aw wa ial pipp u a ial im ubau a a pial b imabu iiiual im a piall

a ppuii m maam.u a i , bu i ma b mimpa kw a ppuii aaailabl a ak m up. t ppuiiul i a am wi ialpi a aii a a bi m im.

u 100k im a ii pibl a piu ilm ilik wi l-m aial aiai a i b il wi a w m

am, iw a l. t piali a aw m ai b a mmui bui a iu, wi lml pial lui.

Eay adopte o socia investment

I like the idea o social investment and wouldwant to try out this new area.

ti am i akwlm a pu ib w w iiw.t miai a ul b iia i iam a b imiai a lpia w abi. Imiai bau impliil ua a will b i u waa a wul wa b a al ap. ma, ia ial im i am ui wal mak a ibui i. I i i u, i a ppui i b lpi a w abi, i.. a a pli ial im.

re-cycing socia investment pot is positive

It is appealing to know that my money maycome back to me and Ill be able to reuse it oranother social investment.

t Ai I up i miaial.t a a umb pial miaiali. t p ia ial willappal m, a ia uui ialau. t i al a lpm a abi i a u ii will b mai x pli wal i ialim. I aii, ma b a pi

lm l i a i i a w p i bak m wi a pilapi ap mak a im wi a pilapibji.

Choice o Chaity/Socia Entepise is impotant(unde 100k goup)/Poduce evidence o sociaoutcomes (ove 100k)Mia 4 (u 100k up ima) My decision as to whether or not to invest

would depend on which charities or causes werebeing supported.

t i a a i miai a ipi bw i up. t u100k ma wa a a l a ial au a i bi upp. tiwill b lik p pu i i up wi ai b a mmui bui a iu. I ai/ial pi i appal i up i, i wul a a a bai im.

ti mia au i p i 100k up, impli a a mwi u p a u pialxpi l a mi ialpi/aii.

Mia 4 ( 100k im a) Iwould like to see case studies o the benecialsocial outcomes o these products.

wi a a 100k ima i i u m impa mia(8 l a 100k up). ti i a la uai w pua ial um. t paiulai i ial pi pp ua ial im u. I a, ii m mplia a ai b ammui a iu ua w ial b i i.

t lak a ui a ak wulb a bai pial i.

Economic envionment eads to need o sociaentepise

Social investments are important toencourage social enterprises/charities in thecurrent economic environment (need or moreunding because o government cutbacks).

t Ai I up a mpai ial im i bakp m ubak. ti miai ial-ia, i.. i a lki

ial um b u a ali ui i mui. t a a i i a mia implia up i a a alai a axai.



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31

Socia investment encouages business-ikebehaviou

Social investment would help make charitiesand social enterprises more business-like, i.e.

clearer objectives, ecient, better managed.

Ma ppl l iw a aii aial pi wul b m a mmmial appa. t Ai I upa mia b a pup m li ial um i am i wa. t miai i a a a a i ll l will bxi ai/ial pi awul wi b a. I i u a iipli uui pii a

a bak i ul mak i mlikl a a pii ial um ul.

Be sue that socia good i esut (unde100k)/Tax incentives coud make a eadieence (ove 100k)

Beore Id invest, Id need to be convincedthat the money is going to be used to result insocial good and not or any other purpose.

ti mia i l m l b wi l a 100k im a. I ia mia wi u. t iali wa a a m will bwa. I ma b wi piupi (Miai 6) a i will b wll-maa.

Tax relie or tax incentives would encourageme to make an investment.

Iiw wi a a 100k im l m l abu i aialii. u a w ii i qualiai wk wi a a i

x quaiai:

Jump start i wul i a ialm aii. I i a iwa ui i iii a i wul b a mal ai alla wal ial im.

Public awareness a pii aax ii wul a iia publiawa. t m aai wul bpii a u b lii a

ma a i i ial im b uil impa pi aii.

Sharing the benet i wul i a a ial i wa ai /b wi m, wi i b ma a pima pi i m ial . ti lik wi

mia lai u miim, wi i p wi b up wi a ai i a paii i ial im.

Financial gain i will a ba appal a wa pa l ax. I ipaiulal impa lail waliiiual ua wal i ialim.

t lak a ax ii i a bai m

ppl i i i xp a mwul wa ua i p aii a i wi uul p im ua epi Im sm vucapial tu.

3.2.2 Motivations o individuas ith a passiveinteest in being socia investost a a i up a w iii a i wul appa m u ba ubaial up a i ma b pibl mia m bm ial i.

t p mia i up a i m ai iup. t pima i i a a mia b am wi aii/ial pi. i p ix mia a bai b m. A piipi i a appa b a aliai ai u mi im ai aal ua ial im i liima.I i pibl ia ial impu a m bai a iup a a i i m pu

p. t llwi a p i up:

Financial incentives: i up a lki ax ii ua m a i. I aii, a ki a ua m uui aua abu i.

Understanding: qualiai wk ii a uai b pi bai, mia a a ui. t quaiaiwk m a i will b impa

wi a ai i, bu piall impa wi a pai i.



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32

Control and trust: pii aua abupial u maam a w m i bi u a impa pai i up. t aa a ba, bu a bai b m.

3.2.3 Motivations o those ith no inteest o anegative vieti up i likl bm ial ia w bai a iul m.A la pii i i ii au im. t pblm i a

aiuiall a m likl bli aial ul b m b m.t bai a u a i i ulikl aial im pu a b i i up.

3.3 Concusion on motivations

t u ppulai wa ii i upai xp xp

Figue 10: Miai sial I wi a Pai I

Figue 11: Miai iiw wi i

T/B

T/B

B

T

T/B

B

Need tax incentives

Need case studies

Need a return even if it is for a

social purpose

Economic environment means social

investment important

Need for assurance about professional

fund management

Need to know money will only be used

for social purpose

1

2

3

4

5

6

Motivations for Social Investment:

Triggers and Barriers Passive Interest

B

B

T/B

T

T/B

B

Social needs should be met bythe government

Need a return on investments

Need for assurance about professionalfund management

Social investment will make charitiesmore efficient

Need to know which charities/socialenterprises are being supported

Need to know money will only be usedfor social purpose

1

2

3

4

5

6

Motivations for Social Investment:

Triggers and Barriers No Interest



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33

miai. t up w labll AiI, Pai I a n I ip w a a ialim pu p m a qui i u.

Alm 40 p u ppulai lli Ai I up lu. tw aal b iii m bw wi 100k a wi blw 100k im a llwi k iii m i aali i si 1.A u 35 p ampl wa laii Pai I up. t Ai aPai I up p a ubaialppulai pi ii a mau i m bai ua

m bm ial i.

Ai I up, i im w lal a i pu p. t a a 100kup wul b ua a b a axii. t up wi blw 100k wppa a wi am ai ial pi p a appamabl a a ial wul ul.

t Pai I lu a likl aax ii a a aabl u. t will imp uai u aui a i aua wi umaa u. t a all bai aul b m.

t n I lu i ii i a l iiiual wa a u, bu bli a ial ul b a b m. t a ulikl wam p ial im.



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PArt 4: overALL concLUsIons 34

T pi aali ib i i p mbi i aiiall ba ii i

p wi im abw 50k a 1 milli.

4.1 Investment assets beteen 100k and 1miion

4.1.1 Dives o socia investmentt w l w aiiall iiai likli a i ial/ial im.

Social/Ethical Values i wai m m a wll api a u, a m likl bil i lal mmui aiii awill a ma m m a iim pli f i ialalu.

Age u i, m likl a bi pi ial/ialim. A i u 40 i mlikl b pi ial im a 55.

4.1.2 Socia investment and ovea fnanciaebeingt m impa a ii ami all aial aiai wllbi i up i aiai wi wim a mi aial al iiiual. exampl al a enjoy lieater retirement without having to worry aboutincome support my childrens education.sial im b pii a ai u i jpaii piall mpi al. t i,

mab wi ai, will wa wk u wappi wal ul b mpl ii a la. A iia a imii aial wllbi i knowing wheremoney is ultimately invested. A wll u

ial im wi lal u ialum, ik a u ul b a ial u aial wllbi iiiual.

4.1.3 Poducts

t i a m likl i i ial pi pp u a ialim u a wi 50k 100k im a. t w l pi maki im i ai b a mmui bui a iu.

4.1.4 Tax incentivesI al, ax ii a appali iup. I paiula, a k b abl apial l aai ax bill ialim u.

4.1.5 Motivationst upi lui miaiqui w a a ubaial up p a imila mi a mak mm likl ial im puappali. t a xml impa wii w ua ak-up am a a a ai i a aii a im.

Engagement ith the socia entepise/chaity I wa bl a b a pa i.

Eay adopte mentaity I lik i ia awa ji i.

Socia investment is dieent I lik ia pi pilap, m wal il.

Evidence I a ui a Iua w ial i a.

Economic envionment I a a i

u im w a al uai ial pi/aii.

Socia investment is dieent I lik ia pi pilap i ia

PArT 4:

OVErAll CONClUSIONS


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l a mak ial umm likl.

Tax incentives I am m likl iwi a aial ii.

t a ml i ai b pial ial i. t iia pialbai the government should be doingthisa I need a return on investmentsa p i up.

t ial pi pp u a ialim u a l iw a ai bau -i likl pial i.A la w-i pial i iw pu a i a pa a im

pli a w p wal plm.

4.2 Investment assets beteen 50k and100k

4.2.1 Dives o socia investmentt w i aiiall iiai likli a i ial/ial im. ti ma a mambiai a a ul baui a p b pi ialim.

Age (with children 15 or under at home) llikl i a l.Age (without children at home) a l, m likl i.

Financial satisaction m likl b iali i a a i ll allaial aiai.

Perception o the level o discretionary

expenditure enabling you to live your liem likl i a lw ll iiaxpiu (iul ip).

Early adopter m i i xpliw im, m likl a ba ial i.

Having nancial security in retirement as agoal m a i al i p, m likl a i iall/iall.

Portolio meeting nancial goals i ixii pli m i aialal, m likl i iall/iall.

Know about social/ethical investments i pial i kw m, a mlikl i.

Giving to charity as a proportion o income

a u aiabl i i m likl i ial/ial im.

4.2.2 Poductst i a m likl i i ai b a mmui buia iu a wi 100k 1 milli im a. t w l pi maki im i ial pipp u a ial im u.

4.2.3 Motivations

t upi lui miaiqui w a a ubaial up p a imila mi a mak mm likl ial im puappali. t a xml impa wii w ua ak-up am w a a ai i a aii a im.

Engagement ith the socia entepise/chaity I wa bl a b a pa i.

Eay adopte mentaity I lik i ia awa ji i.

Socia investment is dieent I lik ia pi pilap, m wal il.

Choice o chaity/socia entepise I l wi ai/ial pi iupp.

Economic envionment I a a i u im w a al

uai ial pi/aii.

Socia investment is dieent I lik ia pi pilap i ial a mak ial umm likl.

Need convincing about socia good I u a ial will ul m mim.

M miai a am a

100k im a up. hw, a w impa i. il, i a ai ial pi/ai. ti i a bai im i u a mak


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ai b m alli, a imii will b p w i i mpai pi pup.sl, a i a lak u aial will all ul m im.

ti i a bai m a maa a bak i pi.

4.3 Poducts

t w u pu i i a,cai B, cmmui Bui sa Iu,sial epi Pp u a sialIm u. All u pu ii a ul b a i wul

b u m. Pial i wul upimail IA a aial wbi am imai. t p aapu au i i li wi ik, u aliquii pu. t amwi uli ial aiai a aual ial/ial/mmui b w appali i lai all u pu.

4.4 Ne Asset Cass

All u pu w iw a a w p im b a la ppi axp a i i maki a im(bw 33 p a 40 p ). Ii alwa iw i a i pilap aial im. pu,a mii (au 25 p ) iw pu a pilap a a i ppiiw i a im (bw 30 p a 40 p ) alu mix wa mwa pilap ai b. ta a au 75 p iiw iw

ial im a mi i mpilap i uai.

Investment pot t a w aaial wllbi i a m kwia aial al a bi m. I i pibla a ui i aial u a a ul ial im ul b a pblm allai im p. I will bimpa ipa lw u i all pma i u a wa a iaua a ul aial al a ill

bi m.

Social investment pot (new type) I qualiai a, i wa lu a u ui i i alla ial

im i pilap aialim, i w ial iw ai i a mi i aallai a pi i wal i. I mak w lp i i pibl a

i ul b ua am.

Philanthropy pot ai b i bma a pilap, bu w i maa a aiabl ii a xpai pilap p i ula. M wkwul b i aa a maklp.

4.5 Tax Incentives

I i il likl a ax ii wul aa pii i uai b wia ai i a wi a m paii bm i. caui wul b xi wi wi im ablw 100k u mplx mbiai a a ma la m b i.t i a pial a wi m ik ialim, i will m i all al. wi 100k im a, ax ii wul iia a wki wim ai a ial a am a lail w a la.

4.6 Ovea Concusion

ti p p mplli i mquaiai a, wi w mbiwi ali qualiai a, w a mawal iiiual ( 100k ima) a mia ial im.t wlmi miai ial

im i a, a wi pa ili, i wal ul a a pii impa i.

t p i ambiuu i i lui wi im a bw 50ka 100k. t i m i p i a i a l mu. Iiial ila mapi a iuaial a wi a, ai il a m a w iiiual l abu i aial iuai.t i a i l a w,

wi i la ial . oall i a a ma piali a paiulal app wi iu aial iuai. t ai b ammui bui a iu wul a


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iia i. hw, a pu piul b auiu, a i i a a paiula iu i lai imiai i up. I paiula, l pi aii/ial

pi bi a m lak u aial will ul. t iu ma aial im pu i up am iul p apppial. ua a pu i will b impa u i a mima xpaibw pu pi a i up pial ial i.

4.7 Futhe reseach

ti p pi a umb aa ua a llw:

1. Market Size: i a a ii aup pial ial i wi lamiai bmi a. tia a b abl ii m, bu iul b uul a a makiz. ial im wi i ik, a wul u ppulai wi im a 100k ab.

2. Product Development:i a i a l lai au miai upwi im a 100k a ab,i i impa u a iw pu a p. ti ulu ii m baiual mi.t impa ial/ial alu aam wi ai/ial pia impa ip a lp. tpia ul b ilu w aiam wi ial pi/ai,

ii bak ial a,lpi a ui a piiimai wa ial i ai.

3. Tax Incentives: i i la a ax iiwul mak a ubaial i. ta pmi m a l a piia aial ii. I i pibl aa a u a, a max ii ul b i i ma mmim

m a a i i ppa i b bi a wi i i. ra ulb uak abli ii i m.

4. Lower investment asset category (below100k): mixu i a ma laa iiiual bm a ial im i a i a au .A pu a a wa i up,

paiulal i a i ik lwu, i will b impa u ll uai a apppiamiai. I will b paiulal impawi ial im a iiiual bm iillui wi ialum. ti ma b l a iu wipu u a ai b a mmui bui a, w i i maiwa a a ll am a amu i alail lw.

5. New Asset Class: i i impa aaa w ial im iiw i, b w a xii, aai m wii i wal allai.ti wul b aluabl imai a ulb u ii w ua mak w u. A al umwul b w mak wi ala akwlm m i a pi pu w mi xp ial/ial alu u plm i wal.

6. IFAs/intermediaries: I i la a imia al will a a impal pla i iibui ialim pu. t will b abl a imai a willabl m im i abu ppui a mak l, i a ii miaial ia bai. A a uai wb a wi imia al(pu liau/imai, a/

upp .) will lp u a makpimi i pial.


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APPendIX 1: sAMPLe sPLIt dAtA tABLes 38

Tota sampe size: 505, Assets 50-99k: 199, Assets 100k+: 306

APPENDIX 1:

SAMPlE SPlIT DATA TABlES

Tabe A1: A up

Tabe A4: A

Tabe A2: Li a

Tabe A3: hai ki() a 15 u lii a m

Unde 40 40-54 55 o ove

tal 28% 36% 36%

50-99k 42% 36% 23%

100k+ 19% 36% 45%

50k to 99k 100k to 199k 200k to 299k 300k to 499k 500k to 749k 750k to 1m

tal 39% 31% 12% 11% 4% 3%

50-99k 100% - - - - -

100k+ - 51% 19% 18% 7% 5%

Unde 55, no kids Famiy (having kids 55+, no kidsunde 15 at home)

tal 41% 23% 35%

50-99k 55% 23% 23%

100k+ 33% 24% 44%

Have kid(s) at home Do not have kid(s) at home

tal 23% 77%

50-99k 23% 77%

100k+ 24% 76%


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Tabe A7: Lai

Tabe A9: sm ppl a aial wllbi a ai u m l -ial li u li. Ui i ii, w wul u a u aial wllbi? (sal1-10; 1 = xml p, 10 = xml )

Tabe A8: hw ai wul u a u a wi u all aial iuma?

Tabe A5: Aual ul im

Tabe A6: rim

Uban rua Neithe

tal 62% 31% 7%

50-99k 70% 25% 5%

100k+ 57% 35% 9%

9-10 7-8 1-6

tal 19% 55% 26%

50-99k 11% 55% 34%

100k+ 25% 55% 21%

Extemey/ Faiy satisfed Neithe, no/aiy/vey/

vey satisfed extemey dissatisfed

tal 22% 55% 23%

50-99k 17% 54% 29%

100k+ 26% 55% 19%

less than 25,000 55,000 105,000 260,000 Pee not25,000 - 54,999 - 104,999 - 259,999 o moe to anse

tal 6% 29% 40% 17% 3% 5%

50-99k 6% 30% 47% 11% 2% 5%

100k+ 6% 28% 35% 21% 4% 6%

retied Not etied

tal 20% 80%

50-99k 12% 88%

100k+ 25% 75%


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Tabe A10: o x 12 m u ik al mi ii u will...?

Tabe A11: hw likl wul u b i i a aial pu a, a wll a ii u ampaabl u u m, a a pii impa i, lp a au a ial bial ?

Tabe A12: hw ai a u wi w u im a mi u aial al? (iaialal a b a llw: ej li a im wiu ai w abu im; supp mil() uai; Mak u I (a m amil) a aiall u; Imp m quali li; sau m i al)

Impove Get ose Stay the same Dont kno

tal 21% 45% 31% 2%50-99k 21% 44% 33% 3%

100k+ 21% 46% 30% 2%

Vey ikey Faiy ikey Neithe/no Faiy unikey

tal 16% 52% 28% 3%

50-99k 21% 51% 26% 3%

100k+ 13% 54% 30% 4%

Vey satisfed Faiy satisfed Not vey satisfed Not at a satisfed

tal 8% 74% 17% 1%

50-99k 5% 73% 23% -

100k+ 10% 75% 13% 1%


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Tabe A13: I al, w ai a u wi u u a im pu i m

Tabe A14: hw u i u im aii a/ lal mmui aiii?

Tabe A15: hw u mak ai aii a/ lal mmui aiii?

Once a month Once evey Once evey 6 Once a yea o less than once I do not cuentyo moe 2-3 months months o moe a yea get invoved

moe ith these types

o activities

tal 32% 15% 10% 11% 13% 19%

50-99k 26% 15% 12% 11% 16% 21%

100k+ 36% 15% 8% 12% 11% 18%

Once a month Once evey Once evey 6 Once a yea o less than once I have not madeo moe 2-3 months months o moe a yea any donations

moe yet

tal 32% 15% 10% 11% 13% 19%

50-99k 26% 15% 12% 11% 16% 21%

100k+ 36% 15% 8% 12% 11% 18%

Vey satisfed Faiy satisfed Not vey satisfed Not at a satisfed

Im u tal 7% 52% 35% 5%

50k-99k 7% 51% 39% 3%

100k+ 7% 54% 33% 6%

spa ik tal 15% 73% 11% *

50k-99k 11% 71% 17% 1%

100k+ 18% 75% 7% *

Liquii tal 18% 69% 12% 1%

50k-99k 15% 65% 19% 2%

100k+ 21% 71% 8% *

L im tal 17% 73% 9% 1%

50k-99k 12% 73% 14% 1%

100k+ 20% 74% 6% 1%

Kwi w u m tal 21% 65% 13% 1%

i ulimal i50k-99k 15% 65% 19% 1%

100k+ 26% 64% 9% 1%

eam wi tal 6% 71% 22% 1%

uli im50k-99k 3% 68% 28% 1%

100k+ 8% 73% 18% 1%


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Tabe A16: hw mu u l u kw abu im a al ial, mmui ial b?

A ot A ai amount A itte Head o but Not head o

kno nothing beoe

tal 1% 14% 51% 28% 6%

50-99k 2% 12% 53% 26% 7%

100k+ 1% 15% 50% 29% 5%

Tabe A17: d a im u ul l ial, mmui ial b?

Yes No Dont kno

tal 16% 47% 37%

50-99k 12% 47% 41%

100k+ 19% 47% 34%


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APPendIX 2: Key tABLe sUMMAry for foUr ProdUcts 43

APPENDIX 2:

KEY TABlE SUMMArY FOr FOUr

PrODUCTS

Chaity Bond

hw a i i ua wa i im a ?

hw appali u pall i im?

Aumi a u iiai ai u abu ail pu, w likl wul ub i i i pu?

Tota Vey easy Faiy easy Not vey easy Not at a easy Easy (NET)

505 26% 59% 13% 1% 86%

Vey appeaing Faiy appeaing Not vey appeaing Not at a appeaing Appeaing (NET)

5% 36% 49% 10% 41%

Vey ikey Faiy ikey Not vey ikey Not at a ikey likey (NET)

3% 31% 52% 13% 35%

I u w i i i pu, wa amu u im pli wul u lk

alla i? less than 1,000 3,000 less than 5,000 10,000 20,0001,000 - 2,999 - 4,999 5,000 - 9,999 - 19,999 - 49,999

(excludingthe irst three

breaks)

tal (176) 26% 39% 10% 10% 11% 3% 2%

50k-99k (81) 32% 38% 9% 12% 5% 2% 1%

100k-199k (55) 25% 40% 9% 5% 18% - 2%

200k-299k (17) 18% 35% 18% 12% 12% 6% -

300k-1m (23) 13% 39% 13% 9% 13% 9% 4%

tal 100k+ (95) 21% 39% 12% 7% 16% 3% 2%


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Wi llwi ax ii, i a, wul ua u i i i pu?

Git Aid can be caimed on the The inteest you eceive is Neithe o the abovedonation o the inteest to the chaity exempt om income tax

41% 71% 17%

hw wul u a a llwi pu au i m i appal u pall?

Vey Faiy Not vey Not at a Appeaingappeaing appeaing appeaing appeaing (NET)

Im u 10% 29% 44% 17% 39%

rik apial 12% 56% 27% 5% 69%

Liquii/a apial 6% 40% 46% 9% 46%

Ll am wi ial 17% 58% 20% 5% 76%pi/aii bi i i

sial, mmui ial b 23% 56% 16% 5% 79%

Wi llwi b ib w u ik abu i pu?

Tota ikey to invest Pat o my investment Pat o my chaitabe/ A ne type o activity

potoio phianthopic activity

176 16% 46% 38%


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The abiity to oset any capita The inteest o dividends you Neithe o the aboveosses against tax bi up to a imit eceive ae exempt om income tax

34% 59% 31%

Community Business Shae Issue





505 30% 56% 12% 2% 86%


7% 35% 41% 17% 42%


5% 26% 47% 22% 32%


alla i? less than 500 1,000 2,000 5,000 10,000500 - 999 - 1,999 - 4,999 - 9,999 - 20,000

tal (160) 16% 23% 28% 21% 9% 3%

50k-99k (73) 22% 23% 36% 15% 3% 1%

100k-199k (51) 12% 20% 25% 29% 12% 2%

200k-299k (13) 8% 38% 23% 15% 8% 8%

300k-1m (23) 13% 17% 13% 26% 22% 9%

tal 100k+ (87) 11% 22% 22% 26% 14% 5%


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Im u 7% 45% 33% 14% 52%

rik apial 3% 25% 41% 31% 28%

Liquii/a apial 3% 36% 45% 15% 40%


sial, mmui ial b 19% 51% 21% 8% 71%


Tota ikey to invest Pat o my investment Pat o my chaitabe/ A ne type o activitypotoio phianthopic activity

160 31% 28% 42%


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The abiity to oset any capita The inteest o dividends you Neithe o the aboveosses against tax bi up to a imit eceive ae exempt om income tax

28% 54% 40%

Socia Entepise Popety Fund





505 27% 59% 11% 2% 87%


4% 37% 42% 17% 41%


4% 25% 47% 23% 30%


alla i? less than 5,000 10,000 20,000 50,000 Moe than5,000 - 9,999 - 19,999 - 49,999 - 100,000 100,000

tal (149) 54% 31% 11% 3% - 1%

50k-99k (64) 63% 20% 14% 3% - -

100k-199k (50) 52% 36% 8% 4% - -

200k-299k (12) 50% 33% 17% - - -

300k-1m (23) 35% 48% 4% 4% - 9%

tal 100k+ (85) 47% 39% 8% 4% - 2%


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Im u 6% 35% 42% 16% 41%

rik apial 9% 44% 33% 13% 53%

Liquii/a apial 2% 27% 49% 22% 29%


sial, mmui ial b 15% 52% 26% 8% 66%



149 34% 27% 39%


49/62



Can be hed in an ISA The abiity to oset any capita osses Neithe o the above

against tax bi up to a imit

47% 37% 38%

Socia Investment Fund





505 26% 60% 12% 3% 85%


5% 36% 34% 24% 41%


5% 21% 45% 30% 26%


alla i? 10,000 15,000 10,000 20,000 30,000 50,000- 14,999 - 19,999 - 19,999 - 29,999 - 49,999 - 74,999

(excludingthe frst 2breaks)

tal (131) 65% 9% 13% 9% 2% 2%

50k-99k (54) 69% 7% 17% 7% - -

100k-199k (35) 57% 20% 6% 14% 3% -

200k-299k (15) 67% - 27% - 7% -

300k-1m (27) 67% 4% 7% 11% 4% 7%

tal 100k+ (77) 62% 10% 10% 10% 4% 3%


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Im u 17% 49% 22% 13% 66%

rik apial 3% 19% 49% 29% 22%

Liquii/a apial 6% 32% 43% 18% 38%


sial, mmui ial b 18% 49% 23% 10% 67%



131 42% 25% 33%


51/62

APPendIX 3: MotIvAtIons for socIAL InvestMent theoretIcAL frAMeWorK 51

w w i uaiiw miai maki a ial im, wi

a im i uu ii pm u im. ou ial

amwk u a piipla a p bi abu ppulaibaiu a, uiabl ip wii mulipl-p amwk a i wbmi pmi i plial i.M aiial ii i pl aim pu aial a i ii biabu baiu a. I paiula, puaia uai ampai aim a aiub li fi pi piimai ( sumak et al., 2008). I ali,w, ul im i al app, aai ii au bw 3 p a 28 p aia i baiua, pi w ampl xpimal (Wbb & sa, 2006) laial (sa, 2002) mpil.

I a mi ml aial iui a w p pi ial aimai, ii m baiual iu a uma baiu i auall lb u uma, mial a allibl bai.A a ul, a lp a

u a li ml xual a bi abu aumai, ai a uiu a i baiu a i mu u abu, i impl m abu(Ba & caa, 1999). ti a wi amp aai a m aliiml uma ii-maki, wi milp ap w plii a u ppl mak b ii i m piia waa m pii imai, i b ai choice architecture (tal &sui, 2008).

I ua miai ialim, w pi a m mplau w aumai p lbaiu. r i m ii

ui u a, i aii u aial l, a al w p aumai maim a uli umamiai a ai. tu, a bai m, wi a plial

p u a u, li, a abi,a a al ipl ifu baiu.

i, refective thoughti mbi i al-i m, wi a i ml-baai imula uu um aalula qu ai ai aluablal. s, impulsive motivation systems,a ba luiail aqui aip (.. iu, , aai) pi imal imuli (.. , m,ial up), a ai alu l a mall ppa baiu (.. appa,aia, umpi, i a ip). ti, habit (refexive) systems, i lai u pa pai ia abl im, fxibl ai alu a ai aapi m ai a malpai. I umma, al, impul aabi a ll uma ai.

I pi a m -ai aali aiu ubl miai bi ialim, w a a bi m abuw w aumai m, impul a

abi, a mai i uma baiu.dii baiu a ii (.. ai maki) ul uuall a wi a puaali a uai baiu iqui, aml wa a i a bai malaapi baiu a/ ibaiu (Abaam & Mii, 2008; sumaket al., 2008). ol (.. kwi a apaiula baiu i i b a pi p abi impul) w a kw wa iqua m i i pi iuma(a abi a impul a i b i

m).

Impuli i a mi a bu i m pi miaiala. ik (2010, p. 16) pi a

APPENDIX 3:

MOTIVATIONS FOr SOCIAl

INVESTMENT THEOrETICAlFrAMEwOrK


52/62

APPendIX 3: MotIvAtIons for socIAL InvestMent theoretIcAL frAMeWorK 52

mpi up--a iw umamiai a pp mi:belonging ( , abl laiip,a aliai); uai ( amai a pii); control(

pi i bw baiu aum),sel-enhancing ( iwi la baiall w impabl), a trusting( iwi a baiall bi).t mi a i m li uma aapai i up, a a bu a a ial ai pi a mi ili i liau.W mpl imila laiai piimpuli miaial a (.. bli,uai, l, .), wi i ialim baiu.

habi m l b action habits (wa i i) a mental habits (wa iki abu i). ti iii iua b i uppi w u a al b pi pup ii baiu a ii.Ai Ba (1997, p. 28) a kill, bi ppual, m, ii, qui la l iu ai m qula il i i a. habiual li mia b iumal lai, wba iiiual la aia a paiulaai mal a wi i alu i a iiuai wiu a xplii pai pi um al (wi i a piil al-i m). cqul,ai a mal pai a la awa a xu m qul i pi im (a a i b uaaii i im), wa a la ai a xu l.

reeences

Abaam, c. a Mii, s. (2008) A axm bai a iqu u i ii.hal Pl. 27, pp.379-387.

Ba, J.A. (1997) t aumaii ali. I W J, r.s. (e.) Aa i ialii. vl.10, pp.1-61. Mawa, nJ: elbaum.

Ba, J.A. a caa, t.L. (1999) t

ubaabl aumaii bi. AmiaPli. 54, pp.462-479.

ik, s.t. (2010) sial bi: c mi iial pl. nw yk: Wil.

sa, P. (2002) Ii-baiu lai:A pual a mpiial iw. I sb, W.a hw, M. (e) eupa iw ialpl. vl.12, pp.1-36. L: Wil.

sumak, s.A., s, e., ok, J. a MB,W.L. (e) (2008) t abk albai a. 2 eii. nw yk: spi.

tal, r.h. a sui, c.r. (2008) nu:Impi ii abu al, wal, aappi. nw ha: yal Uii P.

Wbb, t.L. a sa, P. (2006) d aibaial ii bai a?A ma-aali xpimal i.Plial Bulli. 132, pp.249-268.


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APPendIX 4: cLUster AnALysIs IndeX 53

APPENDIX 4:

ClUSTEr ANAlYSIS INDEX

t Ix i ma- lu lai ma- all (al p ll).valu 100 iia a lu a a i a aa ma- a alu l a 100iia a lu a a lw a aa ma-.

Label

Counts (%)

Bi abl b pall il i aii, au

pj bi upp, .. lui pial bi, wul b a ii m i

I wul lik b abl ii ial pi ai am maam

I lik ia ial im a wul wa u i waa

I i appali kw a m m ma m bak m a Ill

b abl u i a ial im

M ii a w i wul p wiaii au w bi upp

sial im a impa ua ial pi/aii i u mi im ( m

ui bau m ubak)

sial im wul lp mak aii a ial pim bui-lik, i.. la bji, i, b maa

B I i, I b i a m i i bu ul i ial a a pup

I wul lik a ui bial ial um pu

tax li ax ii wul ua m mak a

im

I wul b au a im u wa bipiall a il maa

sial ul not b b m aaxai, BUt By iiiual

I do wa a u m a im aim a i ial pup

Active inteest Passive No

inteest inteest/reject

Assets Assets

50-99k 100k+

16 23 35 27

135.0 (1) 125.8 (2) 85.5 (13) 76.0 (10)

127.5 (2) 129.2 (1) 87.0 (12) 75.7 (11)

121.9 (3) 119.7 (3) 100.7 (10) 69.0 (13)

116.0 (4) 115.3 (4) 100.4 (11) 76.8 (8)

113.5 (5) 109.9 (10) 102.6 (7) 80.1 (5)

112.4 (6) 111.8 (6) 104.55 (4) 76.5 (9)

111.3 (7) 111.3 (7) 101.2 (9) 82.0 (4)

111.2 (8) 110.1 (9) 103.5 (6) 80.0 (6)

110.9 (9) 114.2 (5) 105.4 (2) 74.2 (12)

105.9 (10) 110.6 (8) 106.1 (1) 79.3 (7)

105.7 (11) 107.7 (11) 104.5 (5) 84.0 (3)

102.0 (12) 101.3 (12) 101.3 (8) 95.9 (1)

101.7 (13) 97.1 (13) 104.59 (3) 95.4 (2)


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APPendIX 5: technIcAL APPendIX for regressIon AnALysIs 54

Methodoogy

W iia p w qui(a) wa aibu (i) ifu

p qui. rp a a w up i w ai,i a lw, ba i p, alii i wa u aal aa.

t a aiabl w:

Qc: Likli i i a aial pu

hi = likl (16 p )

Lw = ail likl + i likl ulikl+ ail ulikl (84 p )

Q1b: saiai wi all aialiuma

hi = ai + xml ai(22 p )

Lw = ail ai xmliai (88 p )

t u p w ii i wup wi w aal paal. t

w:

wi 100k iabl a up 1 milli (306 p)

wi 50k 100k iabl a(199 p)

tu w u paa i aali all (w a im w up).

t i w ai u i sAs wa

ui a pwi li p. ti pa i a a im ml, pia a aiiall iia, uil u i a b a. A a p ial ma m a i m ml i a

i l ibu iial. t alml i aiabl (ill) la p.

t li ipu, m wi i w

l, w aiabl a i wa lw likl a a impa a. tilu u qui:

QA Iabl a

QB A

Q4 W i m ii m m I ai ik

Q4 I lik a m m i up il-m im

Q4 m im i all abu maki b u

Q4 I alwa k ai b aki uim

Q5a iaial al: ej li a imwiu ai w abu im

Q5a iaial al: supp m il()uai

Q5a iaial al: Mak u I (a mamil) a aiall u

Q5a iaial al: Imp m quali li

Q5a iaial al: sa u m i al

Q5b A w ai a u wi w uim a mi u aial al?

Q6 Kwi w u m i ulimali: w ai a u wi uu a im pu?

Q10a hw u i u im

APPENDIX 5:

TECHNICAl APPENDIX FOr

rEGrESSION ANAlYSIS


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aii a/ lal mmui aiii?

Q10b hw u mak ai aii a/ lal mmui aiii?

Q10 t wa x u a aaii all i m m ai?

Q11a hw mu u l u kw abuim a al ial, mmui ial b?

c1 hw ma il a 15 u u a a a ill lii a m?

rim (m pal)

hul im (m pal)

a i aiabl:

eal api a (m Q4)

sial im a (m Q4)

rai aiabl ii ulim

rai aiabl iabl a

amil = A il a 15 u liia m

A amil iai (a im amil)

t i ial im aal a llwi ipu:

Q1b A w ai wul u a u awi u all aial iuma?

Q2 hw wul u a u aialwllbi?

t ub ipu a w l ai al ml, a i impa, a

w blw.

Undestanding the esuts

t upu m i aal ilui. t a a (ui) a i i wul a a.

t lai impa a aiabl

i alula b mpai iz aai i. (t a aaibau i a all mau am al.)

t lai i wi aa w i abl blw. t iia -- laiip bw ia a (wa i a laiip w i i ml aak i au.)

t -qua alu a i i alw. ti i ppi aiai i aa a a b xplai b ml.t alu a bw 22 p a42 p . Ilui maii ipu i ml wul mak -qua aluiabl i, bu ipu a bxlu bau , iiiuall, aa iia impa a. t maiiaiai, xplai b ml, i u am ukw i a w aailabl a ipu.

1: Likli i: a 100k

resuts

Vaiabe Coefcient reative Coeation

impotance ith Taget

Ip -7.63

Q4_a2: sial im 2.24 65% 0.34

QB A -0.66 35% -0.20

r-squaed = 29%


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2: Likli i: a l a 100k

3: saiai wi aial iuma: a 100k

4: saiai wi aial iuma: a l a 100k

Vaiabe Coefcient reative Coeationimpotance ith Taget

Ip -7.97

A*amil iai -1.68 20% -0.04

c1: A il a m 3.56 17% -0.01

Q1b A w ai wul u a u a wi u all 1.28 14% 0.13aial iuma?

Q2 hw wul u a u aial wllbi? -0.56 9% -0.05

Q4_a1: eal api 1.23 9% 0.28

Q11a hw mu u l u kw abu im a al 0.90 8% 0.27 ial, mmui ial b?

Q5b A w ai a u wi w u im a -1.45 8% -0.12mi u aial al?

Q5a Wi llwi a u aial al u 1.88 8% 0.10pall?

rai aiabl ii : ul im 0.03 7% 0.22

r-squaed = 42%

Vaiabe Coefcient reative Coeation

impotance ith Taget

Ip -8.74

Q5b A w ai a u wi w u im a 1.81 71% 0.34mi u aial al?

Q6 Kwi w u m i ulimal i: w ai 0.68 29% 0.22

a u wi u u a im pu?

r-squaed = 22%

Vaiabe Coefcient reative Coeationimpotance ith Taget

Ip -10.88

Q5b A w ai a u wi w u im a 3.11 100% 0.36mi u aial al?

r-squaed = 25%


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APPendIX 6: technIcAL APPendIX for cLUster AnALysIs 57

Methodoogy

W u lu aali pli pi ii m lu. t ia

i up iiiual w a imila a bu i m i m. similai i mi ui a aiabl a a u a ipu p.W u p all am i Q22(aiu ial/ial im pu).t, uli lu f imbiai aiu au pu.

t ipu aiabl w:

Q22 I wul lik a ui bial ial um pu

Q22 I wul b au a im u wa bi piall ail maa

Q22 tax li ax ii wulua m mak a im

Q22 M ii a w iwul p wi aii auw bi upp

Q22 Bi abl b pall ili aii, au pj biupp wul b a ii

Q22 I wul lik b abl ii ialpi ai a m maam

Q22 B I i, I b ia m i i b u ul iial l

Q22 sial ul b b

m a axai, iiiual

Q22 sial im wul lp makaii a ial pi m bui-lik

Q22 I wa a u m a imaim a i ial pup

Q22 I i appali kw a m mma m bak m a Ill abl u i

a ial im

Q22 I lik ia ial im awul wa u i w aa

Q22 sial im a impa ua

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