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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.

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What is community Investment?

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  1. 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.

  2. 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. Source:Hugh Rolo:DTA

  3. 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

  4. Ekopia A Co-operative Registered in Feb 2001 270 members Assets of £800,000 plus Development Trust www.ekopia-findhorn.org

  5. Types of Structure - in UK • Company Ltd by guarantee/Charity • Company Ltd. by shares • Co-operative • CIC • LLP • Plc

  6. Co-operative Types • Bona Fide or Co-operative Society • Community Benefit Society • Look similar • Community ownership or owned by members of the Community?

  7. Company Structure and Shares • Well-known and understood • Relatively inexpensive BUT • Can’t advertise shares • Definitely seen as commercial

  8. Co-op Structure and Shares • Can advertise • Relatively inexpensive BUT • NOT well-known and understood • May confuse grant funders

  9. Phoenix Community Stores Turnover of just over £1 million Books, crafts, remedies Food the biggest area of growth

  10. Types of Investment • £270k invested by Ekopia in Phoenix • Loans • Preference Shares • Ordinary Shares • Members in Ekopia • Co-operative Shares • Minimum of £500 invested

  11. Loans Bank vs Private FSA issues Zero Interest shares are outside the scope

  12. Social Investments in detail - in the UK http://www.senscot.net/view_res.php?viewid=4986

  13. Main Projects • Phoenix Shop • NFD Chalets • Wind Park • Newbold Trust • Eko Currency • Community Land and Housing Trust • Development Partners

  14. Photo: Liza Hollingshead

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