Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.

What is an Innovative Finance ISA?

Tips by Triodos Bank

27 February 2026

Investing can take many forms. Some invest through funds that spread your money across a variety of organisations, and are controlled by a fund manager, who makes decisions about investments for you. However, for those who are comfortable making their own investment decisions, there is an alternative: investment crowdfunding and the Innovative Finance ISA (IFISA).

An IFISA provides a unique opportunity to put your money to work, while directly supporting the organisations or projects of your choice through crowdfunding or peer-to-peer lending.

In an IFISA, you can earn tax-free interest on eligible crowdfunded investments. You can hold multiple investments within the same IFISA and can invest up to £20,000 each tax year. Remember, your allowance will be spread across all other ISAs you have open in the same tax year – you can read more about other kinds of ISAs, such as the Stocks & Shares and Cash ISAs.

Only some crowdfunding offers will be eligible to invest in with an IFISA. For example, share offers are not eligible, but Triodos crowdfunding offers will be marked clearly if you can use your IFISA.

What is crowdfunding?

Crowdfunding is an alternative route of funding for companies or charities that may be unable to access traditional business loans. All the investment opportunities on the Triodos crowdfunding platform are chosen because the organisations deliver positive change, and create environmental, cultural or social impact.

Instead of investing in funds that can be spread across multiple organisations, you invest directly with the company of your choice, through a crowdfunding platform. You are lending money directly to the company or investing in the company, with the view to earning interest on that loan, or earning dividends on shares purchased. There’s a risk that the company issuing the offer may fail and, in this case, they may be unable to pay you back or give you an investment return – your money is not protected in this event.

Benefits of an Innovative Finance ISA

Investments in an IFISA are not exposed to the ups and downs of the stock market, however they are high-risk investments, and you should not invest any money you cannot afford to lose. However, if you are open to the risk, you can earn tax-free returns that can sometimes surpass those in traditional saving or investment products.

An IFISA allows you to specifically select which companies and projects you want to invest your money in, meaning you can use your money to have an impact where it matters most to you. For example, you may have the opportunity to invest in the early stages of a company and support them as it grows, or you might invest in a local initiative that you have a connection to.

The risks of an Innovative Finance ISA

Crowdfunding investments are high risk: the companies may underperform or fail and there is no guarantee that interest or capital will be repaid. We perform due diligence on the companies and their business plans and we also ensure the mission and ethos of the company aligns with ours, but good due diligence does not eliminate investment risk.

Even if the business you invest in is successful, it can take several years to get your money back and receive any returns, so you should not invest any money you may need to access in the short-term.

Our open crowdfunding offers

The following offers are open on the Triodos crowdfunding platform and are IFISA eligible. You should do your own research about whether crowdfunding investments are right for you.

Birtenshaw – a specialist school supporting vulnerable young people

Leading education charity, Birtenshaw, supports children and young people with physical disability, complex health needs and learning disability by providing education, care and therapy. 

Birtenshaw is raising funds through this bond offer to contribute to the redevelopment of its specialist college in Bolton. The college provides education for around 40 young adults aged from 16 to 25. It is an old building which was originally a residential care home for the elderly and isn’t fit for purpose as a space for young adults.

This offer has now hit the minimum raise of £1 million.

Learn more about this offer

Thrive Renewables – driving the clean energy revolution

Thrive Renewables exists to tackle the climate emergency. They have been working with investors, developers, businesses and communities to fund, build and operate clean energy projects since 1994. They aim to balance the needs of people with those of the planet: building new sustainable energy projects and empowering people to take action for their communities.

Learn more about this offer