Charity Invested Funds

To help us deliver this, Foundation Scotland regularly invests funds to support the long-term needs of the voluntary and community sector. 

If your organisation is interested in developing a long-term strategy for its income, a Charity Invested Fund is an easy way to get started. The returns can provide a perpetual stream of revenue for your charity which you can access for special projects or to support your day-to-day activities. Alternatively, you can take a longer-term view, leaving the fund to grow over time to deliver lasting support.

What is a Charity Invested Fund?

A Charity Invested Fund is a sum of money (capital) invested to benefit your charity over the long term. Any financial return can then fund your charitable activity. The return from the invested capital is produced from a combination of dividends, interest, and capital growth.

Investing a percentage of your charity’s funds can help you build your own long-term legacy. Many organisations choose to invest when they’ve had a spike in income. Perhaps you’ve raised a significant amount of funds through an appeal. Or maybe you’ve had a large donation or legacy left to your charity. 

Transferring some of your charity’s income into an invested fund with Foundation Scotland has multiple benefits for your organisation:

• Experience: If you don't have any specialist investment experience within your community, don't worry. You will receive full support in setting up your invested fund, with fund performance being monitored by Foundation Scotland's experienced Investment Committee. This frees up your time to focus on delivering your charitable objectives.
• Responsible Investment: Funds will be invested with the Rathbones Charity Growth & Income Fund - a diversified multi-asset fund which balances growth with reduced volatility.
• Cost-efficient: The size of Foundation Scotland’s combined investments means that the fund will benefit from lower fees than those incurred setting up your own investment portfolio.
• Transparency: You'll have 24/7 access to your fund via the Rathbones portal, offering you visibility of the fund's performance.
• Security: The fund is ringfenced, its purpose protected and any withdrawals and additions to the fund are driven by you.  

Where are funds invested?

We see it as our responsibility to invest for everyone’s tomorrow – doing the right thing for our communities and for wider society. 
Community Invested Funds are managed by Rathbones, as part of their Charity Growth & Income Fund. Rathbones aims to deliver long-term value for investors while contributing to positive change.

They integrate environmental, social and governance (ESG) analysis into all investment decisions, ensuring that sustainability factors are assessed alongside financial analysis. Their framework of eight sustainable development themes is linked to the ambitions of the UN Sustainable Development Goals (SDGs) but focus on areas where companies and investors have the greatest potential to create change. The Charity Growth & Income Fund applies exclusionary criteria to prevent investment in areas that we understand to be of widespread concern to charity investors.