s 292A Meaning of “social investment”
(1) This section applies for the purposes of this Part. (2) A social investment is made when a relevant act of a charity is carried out with a view to both— (a) directly furthering the charity's purposes; and (b) achieving a financial return for the charity. (3) References to an act of a charity are, in the case of an unincorporated charity, to an act of the charity trustees. (4) A relevant act of a charity is— (a) an application or use of funds or other property; or (b) taking on a commitment in relation to a liability of another person (such as a guarantee) that puts the charity's funds or other property at risk of being applied or used. (5) An act mentioned in subsection (4)(a) is to be regarded as achieving a financial return if its outcome is better for the charity in financial terms than expending the whole of the funds or other property in question. (6) A commitment mentioned in subsection (4)(b) is to be regarded as achieving a financial return if— (a) it is not called upon; or (b) it is called upon without resulting in the expenditure of the whole of the funds or other property put at risk. (7) The fact that a relevant act may also have results other than those mentioned in subsection (2)(a) and (b) does not prevent the carrying out of that act being regarded as the making of a social investment. (8) The fact that carrying out a relevant act of a charity is regarded as the making of a social investment for the purposes of this Part does not of itself make the act an investment for any other purpose.