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This article is part of our Good Guide to Investing for Impact with IFISAs.
For some investors, the appeal of crowdfunding goes far beyond financial returns. It’s about knowing where your money is going – and seeing the difference it can make.
One such Triodos Crowdfunding investor, Steve, says: “I’m especially interested in the investments I make with my Innovative Finance ISA, and closely track their impact and performance. I find it energising to invest in small companies, and incredibly rewarding to see how your money is helping to make a positive difference in local communities.
“It feels exciting to have a hands-on approach, and to stay in close contact with the organisations you are supporting. As well as their financial performance, I always look at the stories of the impact the projects I fund are having on real people.”
Over the past decade, crowdfunding has opened up new ways for individuals to support organisations working to solve some of the world’s most pressing challenges. Rather than investing in distant markets, investors can choose specific projects they want to support.
At Triodos, this approach has enabled us to mobilise significant support for organisations creating positive change for people and the planet.
Since launching Triodos Crowdfunding in 2018, more than £212 million has been raised for 57 organisations across 94 different transactions and projects.
Behind those numbers are real-economy initiatives – from renewable energy to specialist education – funded directly by individuals who want their money to contribute to positive change.
One example that recently raised funds is Birtenshaw, a specialist education charity supporting children and young people with physical disabilities, complex health needs and learning disabilities.
Founded in 1956 by a group of parents of children with cerebral palsy, the organisation now operates schools, a specialist college, residential homes and adult services across the north west of England.
Birtenshaw raised funds to redevelop its specialist college in Bolton. The current building was originally designed as a residential care home for older people and no longer meets the needs of modern specialist education.
The redevelopment will create a purpose-built facility including therapy spaces, accessible learning areas, a training kitchen and a community café. Capacity will increase from 40 to 80 learners, helping meet growing demand for specialist Education.
For investors, projects like this provide a clear connection between their savings and real-world outcomes.
Another recently closed investment option is the Thrive Renewables bond offer. Its portfolio includes 35 wind, solar, hydro, geothermal and battery storage projects.
Through its latest bond offer, Thrive raised funds to help develop new wind farms in Scotland and Wales, as well as support community-led renewable energy Projects.
These investments demonstrate how individuals can play a direct role in financing the transition to a low-carbon economy. For many investors, the distinctive feature of crowdfunding – and the IFISA – is the sense of connection it creates.
Rather than distant financial instruments, these IFISAs can offer not only a financial return, but a closer connection to the real-world outcomes your money is helping deliver.
For many investors like Steve, the combination of financial return and measurable impact makes crowdfunding through an IFISA an appealing complement to more traditional investments. The tax-free wrapper is an added benefit.
By connecting individuals directly with organisations creating positive change, crowdfunding offers a way to align personal finances with the kind of future many people want to see.
And for investors like Steve, that connection is what makes the experience so rewarding.
Look out for newly opening offers on the Triodos website here.
These are high-risk, long-term investments. You should carefully consider your financial situation, ensure you are comfortable with the risks and read the full offer documents before investing. Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed.
