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

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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