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JenLi aims to reach more people and change more lives for the better by working at a community scale.
This means that:
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each community project will, by its nature, impact upon thousands of people;
- to prosper, these people will require ‘enabling
infrastructure’ (the facilities and services necessary for
everyday life), homes, schools, places of work and leisure. JenLi can
sustainably allocate close to 100% of its Donated Capital to creating
these assets, because property is a secure investment class;
- additionally, every £1 donated to JenLi results
in £4 put to work in a deprived community, because JenLi
leverages Donated Capital using Social Investment and Debt;
- JenLi provides a context for, and seeks out,
partnerships with other foundations and charities, thereby harnessing
their expertise and resources to address specific issues in the
community.
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Donated funds underpin the model, prioritising social
gains and reducing financial risk, to enable worthy projects to benefit
from cheaper loans, over a longer term and with more flexible repayment
conditions.
JenLi is able to prioritise social return over financial
return because it is a not-for-profit and charitable organisation.
Financial surpluses which accrue to JenLi are used to grow the pool of
donated capital and not distributed as profits. Accordingly, donors are
entitled to tax relief on donations of cash, shares, securities or
qualifying assets.
JenLi is able to reduce risk for Social Investors and
Debt Providers. Consequently they require lower financial returns which
reduces the cost of capital to community projects.
These projects, and urban regeneration particularly,
usually require investment in land reclamation and infrastructure
provision beyond that necessary for ‘greenfield’ sites.
Holding this ‘enabled’ land over the longer term (>10
years) offers JenLi the opportunity to harvest the increased value
created, thereby recouping its capital and recycling it for future
projects. Initial donations can therefore be reused in perpetuity to
further JenLi’s benevolent work.
JenLi is initially seeking to raise donations of £10m, and at
least £100m over the first five years to create a diversified
project portfolio where no more than 25% of the capital is invested in
any one project. |
