Office of the Third Sector Homepage
Last updated: 04 February 2010
Futurebuilders is an innovative government-backed investment programme that provides loan and grant finance to third sector organisations to help them bid for, win and deliver public service contracts.
When the Futurebuilders programme started in 2005, many third sector organisations were resistant to the idea of taking a loan, and preferred to take grant funding. This attitude has shifted over the years, and the Futurebuilders Fund is now fully committed and is currently closed for new applications following the strong demand for investment funding.
The Fund, which is managed by the Social Investment Business under contract to the Cabinet Office, has offered investments to over 370 third sector organisations and shown that there is an appetite for loan finance in the third sector.
Futurebuilders has brought real change to its investees, strengthening their capacity, enabling them to bid for and deliver better quality public services.
In 2009 alone, Futurebuilders investees won over 230 public service delivery contracts.
In addition, the Futurebuilders Fund has co-invested with a wide range of social and mainstream investors, crowding in additional investment into the sector.
The success of Futurebuilders has paved the way for further growth of the social investment market.
In Pre-Budget Report 2009, Government announced that it will finalise a model for the Social Investment Wholesale Bank by Budget 2010. The Government also announced its intention to commit up to £75 million of the funds expected to be released through the Dormant Accounts Scheme in England, to fund the SIWB’s initial capitalisation
Government responsibility for Futurebuilders lies within the Office of the Third Sector with Angela Smith, Minister for the Third Sector, as lead minister. The Futurebuilders Fund is currently managed by the Social Investment Business under contract to the Cabinet Office.
Details about the Futurebuilders programme and updates on successful applicants can be obtained from the Futurebuilders website [external website].
More information about the Social Investment Business can be found at the Social Investment Business website [external website].
The first phase of the fund focussed on five areas of service delivery:
• crime
• community cohesion
• education and learning
• support for children and young people
• health and social care.
From 1 April 2008 onwards, Futurebuilders has invested in organisations operating in any public service sector.
The Spending Review (HM Treasury 2002) included the announcement of the Futurebuilders Fund.
A consortium led by Charity Bank, including the National Council for Voluntary Organisations (NCVO), the Northern Rock Foundation and Unity Trust Bank, won the contract to run the Futurebuilders (England) Fund in December 2003.
The consortium formed Futurebuilders England Limited to manage the fund. Futurebuilders England Limited was incorporated as a company limited by guarantee on 8 March 2004. It is not a registered charity but has not-for-profit objectives, although its members comprise profit and non-profit organisations.
Futurebuilders England Limited was launched on the 5 May 2004 and became operational on 5 July 2004.
The first agreement with Futurebuilders England Limited to run the Futurebuilders programme expired on 31 March 2008.
Following a retender exercise the Adventure Capital Fund won the contract to deliver the Futurebuilders Programme from 1 April 2008 to 31 March 2011. They trade under the name ‘The Social Investment Business’.
Futurebuilders is a programme set up to assist front-line third sector organisations to build their capacity to increase the scale and scope of their public service delivery.