A growing activity of increasing interest to voluntary groups. Charities often feel constrained to pursue ethical investment (which here is taken to mean banking, pension schemes as well as trading in stocks and shares) by believing they have to maximise financial returns.

Firstly, ethical investments have had a good track record to date, where properly managed, although there are investment funds which specifically dont try to achieve high financial results.

Secondly, it is legitimate to take other issues into account, such as:
- investing in companies where the charity's objectives oppose its activities is clearly counter-productive to achieving those objectives.
- where investing in a company is likely to lose members, donations or public support, that too may not be in the best interests of the charity.
- some positive investments may be of help in achieving charity objectives, and slightly lower financial performance may therefore be justified.

Sources of information

These are gradually increasing in web presence.

• EIRIS Ethical Investment Research Service, 80-84 Bondway, London, SW8 1SF, phone 020 7840 5700, email ethics@eiris.org. Ethical Portfolio Manager is a CD-ROM based 'research tool' for analysing social and environmental performance of companies (and can be updated via the web access) - launched May 00. There is also a bi-monthly newsletter The Ethical Investor. Set up in 1983, the fullest range of services, including screening, checklists and guidance on approaches, enabling investors to create a portfolio reflecting own ethical concerns, etc.

• EIRIS with UKSIF have set up CharitySRI web site, to provide "clear comprehensive guidance on how charities can invest ethically" and align their investments with their mission (aka socially responsible investment).

• Ethical Investments - How far may charity trustees go? £2, Ethical Investment - have the Church Commissioners got it right? 50p, both from Christian Ethical Investment Group. Miss P Raikes, CEIG Enquiries, 2a New High Street, Headington, Oxford, OX3 7AQ (Info may be out-of-date).

• Ethical Investment Association (EIA) is a nationwide body of independent financial advisers (IFAs), which aims to facilitate the promotion of ethical investment by its members, and to set standards in the ethical investment industry.

• International Federation for Alternative Trade, a global network of 143 Fair Trade organisations in 47 countries, which works to improve the livelihoods and well-being of disadvantaged people in developing countries and to change the unfair structures of international trade.

• Just Pensions is a project involving War on Want, EIRIS, Traidcraft. There is a handbook available for download on practical Social Responsible Investment.

• UK Social Investment Forum A grouping of financial advisors, fund managers, investors and others, which has the primary purpose 'to promote and encourage the development and positive impact of Socially Responsible Investment throughout the UK'. Useful listings of members and affiliates, plus articles, newsletter items.

Investment Funds, Banks, Investment Vehicles

• CAF (Charities Aid Foundation) has a variety of investment vehicles for charities, including socially responsible portfolios, plus ethical investment information.
  
  
• The Ethical Partnership - independent financial advisers.
  
  
• Ethical Property Company Invests in premises to let out to charities, community groups, social enterprises. Resource centres in London and elsewhere.
  
  
• ICOF Promote and carry out investment in the 'social economy'. Head office: 0121 523 6886, email: icof@icof.co.uk. Wales: 01269 851211 Cambridge: 01223 243087
  
  
• Local Investment Fund 'LIF is dedicated to providing loan finance to economically viable community based voluntary organisations, that are run as 'not-for-profit' enterprises. It bridges the gap between grant dependency and mainstream banking finance.'
  
  
• Shared Interest 'Our funds come from our members, thousands of ordinary people who have pooled their savings to provide the finance that Third World Producers need'.
  
  
• Triodos Bank 'One of Europe's leading ethical banks, draw on 20 years experience financing social and environmental charities.' Brunel House, 11 The Promenade, Clifton, Bristol, BS8 3NN, phone 0800 328 2181 or 0117 973 9339, email: mail@triodos.co.uk
  
  
• Community Investment Trusts, or Community Development Finance Institutions, have sprung up around the country. (There are tax breaks for these.) See Community Development Finance Association.
  
  
• Some local or regional trusts: Ulster Community Investment Trust. Impetus - Shropshire, Herefordshire, WOrcestershire.
  
  
• Pension providers are on our Pay and Benefits page.

Credit Unions

Credit Unions are mutual financial (and democractic) organisations, particularly promoted by community, coop and tradue union movements. Members are individuals, rather than organisations, but are part of the 'social investment scene'.

• Association of British Credit Unions. Holyoake House, Hanover Street, Manchester, M60 0AS, phone 0161 832 3694, email: info@abcul.org
  
  
• SCVO is developing its own credit union for those involved with its member bodies. Phone 0131 556 3882, email: credit.union@scvo.org.uk
  
  
• Unity Trust Bank offers a Credit Union Development Fund which helps fund a credit union grant programme as well as paying high interest.