What is community Investment?
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Transcript of What is community Investment?
What is community Investment?
What is community Investment?
“Community investment” involves members of a community buying shares
or bonds in an enterprise that serves a community purpose.
It empowers communities by giving member/owners – a direct and active
role in the enterprise. Members receive a fair return on
their investment as well as sharing in the social, environmental or
community benefits.
“Community investment” involves members of a community buying shares
or bonds in an enterprise that serves a community purpose.
It empowers communities by giving member/owners – a direct and active
role in the enterprise. Members receive a fair return on
their investment as well as sharing in the social, environmental or
community benefits.
0
1020
30
40
5060
70
80
1987 1993 1998 2003 2008
No. of cases
Growth in community investment
Growth in community investment
Community investment practices date back to the nineteenth century. Last ten years has seen a revival of interest in the practice.
Community investment practices date back to the nineteenth century. Last ten years has seen a revival of interest in the practice.
Source:Hugh Rolo:DTA
Basic facts and figures
Basic facts and figures
• There are more than 80 UK examples of >than £10,000 of community investment
• Total community investment is £265m+
• Collective membership nearly 6m
• 40 new cases in last 10 years
• Median amount raised is £135,000
• There are more than 80 UK examples of >than £10,000 of community investment
• Total community investment is £265m+
• Collective membership nearly 6m
• 40 new cases in last 10 years
• Median amount raised is £135,000
EkopiaEkopia
A Co-operativeRegistered in Feb 2001
270 membersAssets of £800,000
plus
Development Trust
www.ekopia-findhorn.org
A Co-operativeRegistered in Feb 2001
270 membersAssets of £800,000
plus
Development Trust
www.ekopia-findhorn.org
Types of Structure - in UK
Types of Structure - in UK
• Company Ltd by guarantee/Charity
• Company Ltd. by shares• Co-operative• CIC• LLP• Plc
• Company Ltd by guarantee/Charity
• Company Ltd. by shares• Co-operative• CIC• LLP• Plc
Co-operative Types Co-operative Types
• Bona Fide or Co-operative Society
• Community Benefit Society
• Look similar• Community ownership or owned by members of the Community?
• Bona Fide or Co-operative Society
• Community Benefit Society
• Look similar• Community ownership or owned by members of the Community?
Company Structure and Shares
Company Structure and Shares
• Well-known and understood• Relatively inexpensive
BUT• Can’t advertise shares• Definitely seen as commercial
• Well-known and understood• Relatively inexpensive
BUT• Can’t advertise shares• Definitely seen as commercial
Co-op Structure and Shares
Co-op Structure and Shares
• Can advertise• Relatively inexpensive
BUT• NOT well-known and understood
• May confuse grant funders
• Can advertise• Relatively inexpensive
BUT• NOT well-known and understood
• May confuse grant funders
Phoenix Community Stores
Phoenix Community Stores
Turnover of just over £1 million
Books, crafts, remedies
Food the biggest area of growth
Turnover of just over £1 million
Books, crafts, remedies
Food the biggest area of growth
QuickTime™ and aTIFF (Uncompressed) decompressor
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Types of InvestmentTypes of Investment
• £270k invested by Ekopia in Phoenix
• Loans• Preference Shares• Ordinary Shares
• Members in Ekopia• Co-operative Shares• Minimum of £500 invested
• £270k invested by Ekopia in Phoenix
• Loans• Preference Shares• Ordinary Shares
• Members in Ekopia• Co-operative Shares• Minimum of £500 invested
LoansLoans
Bank vs PrivateFSA issues
Bank vs PrivateFSA issues
Zero Interest shares are outside the scope
Social Investments in detail - in the UK
http://www.senscot.net/view_res.php?viewid=4986
Social Investments in detail - in the UK
http://www.senscot.net/view_res.php?viewid=4986
Main ProjectsMain Projects
• Phoenix Shop• NFD Chalets• Wind Park• Newbold Trust• Eko Currency• Community Land and Housing Trust• Development Partners
• Phoenix Shop• NFD Chalets• Wind Park• Newbold Trust• Eko Currency• Community Land and Housing Trust• Development Partners
Photo: Liza Hollingshead