As a non-profit organisation develops new income streams, there is typically a funding gap between necessary investment in capacity, staff or infrastructure and profitability.
This trend coincided with an increased tendency, in both the US and the UK, of government to turn to the voluntary and community sector to offer public services and provide solutions to social problems.
The sources of funds vary across the spectrum of social lenders but most often includes government monies or donations from private individuals and foundations or trusts.
A fourth large lender, Futurebuilders England, made £145 million of government-backed loans and grants between 2004 and 2010 but is closed to new applications.
Triodos Bank finances companies, institutions and projects that add cultural value and benefit people and the environment, with the support of depositors and investors who want to encourage corporate social responsibility and a sustainable society.
The bank uses money deposited by close to 100,000 savers and lends it to hundreds of organisations, such as fair trade initiatives, organic farms and social enterprises.
The remaining profits are returned to its shareholders – trades unions and the Co-operative Bank – which are both part of UK civil society.