Charities have traditionally both spent their funds in support of their charitable objectives, and invested so as to generate further funds for future initiatives. A charity making a social investment combines these objectives in one transaction, seeking to achieve both its charitable purposes and a financial benefit. Social investments include: individual investments, such as simple loans and share purchases; collective social investment where multiple investors pool their funds to achieve certain social outcomes; and social impact bonds. This consultation considers charity trustees’ powers to make, and duties when making, social investments and to consider whether anything can be done by way of law reform to make those powers and duties clearer. Some charity trustees are not confident about making social investments because they are unsure whether their powers under the charity’s governing document or under the general law authorise such investments. In addition, some charity trustees considering whether to make social investments may feel that they risk breaching their duties. The Commission provisionally proposes the introduction of a new statutory power to make social investments. The new power should supplement existing powers, forming part of the toolbox available to achieve charities’ purposes. The new statutory power should be accompanied by a non-exhaustive checklist of factors that charity trustees may take into account in deciding whether to make a social investment. The consultation also concludes that permanent endowment can be used to make social investments which are anticipated to preserve the capital value of the endowment.