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| 1 minute read

The church should be at the forefront of the impact economy

I read an interesting article by Alan Smith this morning about how The Church Commissioners try to use their investments to create holistic impact - ‘profit for a purpose of the common good'.

The Church Commissioners have sizeable funds they can invest to deliver financial impact. There's an ongoing conversation in the Church of England about to what extent those funds should be redistributed to Dioceses to help them deliver mission locally, but that's not what I'm interested in here.

Faith groups are very much at the heart of their communities, working selflessly to meet their needs. Whilst this may not provide financial impact, it reflects a significant social impact.

However, where we're talking about the impact economy, how can faith groups contribute meaningfully?

For those not familiar with this term, the impact economy is where private capital, enterprise and philanthropy are deliberately focused on generating positive social and environmental outcomes alongside financial returns. 

This isn't something that is just relevant to organisations like The Church Commissioners that have considerable resources, it is also something local churches and faith groups should very much be involved in and there are still lots of things that can be done to ensure finances are used to deliver broad positive outcomes.  

 As most churches and faith organisations are charities, the Charity Commission's guidance, Investing charity money: guidance for trustees  is a good starting point.  Does your church/faith group have an investment policy aligned with this guidance and have you looked to ensure that your investments are connected with net‑zero and human‑rights plans, with perhaps a portion of cash to mission‑aligned options?

What about piloting a small, repayable investment (e.g., energy retrofit, community hub, supported housing) with a specialist intermediary? 

If you make grants, treat these as place‑based investments  set simple outcome metrics (homes supported, kWh saved) and publish a one‑page annual update.

Perhaps most importantly use the moral capital you have, in conjunction with other churches and faith based organisations, to use your procurement and convening power; ask suppliers for climate/nature/human‑rights disclosures, requiring social value from them, host local “impact roundtables” with council and funders. 

The impact economy isn’t just for national endowments. With modest, well‑governed steps, a church or faith group can turn financial capital into moral capital through prudent investing, targeted grants, practical decarbonisation, and convening power. That’s stewardship in the 21st century.
All capital carries consequence. Every pound invested has an impact—environmental, social, and moral—whether it is intended or not. Our task is to ensure that impact serves the flourishing of people and planet.

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church of england, buddhist organisations, faith, faith schools, independent churches, islamic faith, jewish faith, quakers, roman catholic, social enterprise, charity commission, charity trustees, impact and social finance, other faith-based organisations, public and regulatory law, public policy