1. Diversify and increase their sources of income
2. Ensure money is managed and distributed fairly within their community
Our practical, hands-on support focuses on:
Local, citizen driven sources of income, for example:
Community shares are a tried and tested way to raise money for community run enterprises.Hundreds of communities across the UK have used community shares to save assets and create businesses that are important to them. Since 2012, over £200m has been raised by more than 126,000 people in community shares across the UK.
Community shares have been used to finance a host of community enterprises including shops, pubs, community hubs, community renewable energy, arts, tourism and sports initiatives.
Community shares are a form of investment crowdfunding where members of the community are invited to buy shares in a community enterprise – often from as little as £10. In return for this investment each community shareholder will receive:
- Membership of the enterprise and an equal say in decision making (regardless of the size of investment)
- Interest payments (typically 2-5%) and repaid investment (typically from 5 years of trading if the enterprise is doing well)
- The many social and environmental benefits of a thriving community enterprise within your neighbourhood.
The Democratic Finance Programme provides fully funded support to any community undertaking a community share offer. This covers the whole journey from community engagement, to business planning, good governance and marketing. Get in touch for more information.
Community Bonds encourage ‘ordinary’ people like your members, clients, supporters, customers or local residents to support your work by making a financial investment into local initiatives like yours by purchasing community bonds.
In return your investors receive a small financial return for themselves and a big social, economic, or environmental return for their community. We call these people ‘Citizen Investors’
Community bonds are a form of patient, affordable and repayable finance, that can assist organisation to achieve their aspirations for their communities. They can be used for a number of business development purposes including buying land, buildings, shops etc; business growth, community energy etc.
Community bonds can be blended with other sources of grants/lending to help enterprises secure their finances needed to realise their ambitions.
The Democratic Finance Programme can provide support to any community or social enterprise interested in raising finance through community bonds. Please get in touch if you would like to know more.
We are currently undertaking research into one-off community lotteries to explore whether this could be an effective way for community organisations to raise money. We are exploring whether one-off community lotteries might be particularly effective where communities are hoping to purchase a particular asset or have a very specific project to fund. We are interested in whether one-off lotteries could be a good alternative to community bonds or community shares – particularly where there is low awareness of or appetite for these other models. As with community shares and bonds, a one-off community lottery would be an effective way to engage a community and demonstrate community backing.
We are interested to hear from communities who would like to be part of a one-off community lotteries pilot – please get in touch if you’d like to know more.
We are currently undertaking research and running a pilot programme to explore grassroots legacy giving for community organisations. We believe that there is huge potential for community organisations to receive more legacies from local people who want to ensure their communitycontinues to thrive. This feels like an untapped market currently. Our research and pilot programme isrunning Autumn 2024 – Summer 2025 – after which an ongoing grassroots legacy giving support offer will be launched. Please get int touch if you would like to know more.
Community-led opportunities from renewable energy developments, for example:
The Democratic Finance Programme can support any community organisation exploring ownership of renewable energy developments – both 100% community owned and shared ownership. Our support is focused on exploring financing options and the democratic governance structures that underpin them. We work closely with Local Energy Scotland to complement their support offered through the CARES programme.
The Democratic Finance Programme can support community led organisations to navigate the complex Community Benefit Funds landscape. This can include negotiating with developers, creating and managing a new local fund, and ensuring that preexisting community benefit funds are distributed and spent fairly and sustainably. We are particularly interested in exploring a longer term, legacy approach for community benefit funds.
Who we support:
We provide direct and practical support to any community either with, or with a desire to adopt:
- A democratic and accessible governance structure
- An enterprising, empowering and sustainable approach
- A grassroots focus on securing, boosting and retaining local wealth
How we provide support:
Our support encourages communities to take and lead action themselves. Support is fully funded and is split into 2 stages:
1. Early-stage:
Support to explore what democratic finance sources or tools are the best fit for your community and your plans.
2. In depth development:
Support to implement democratic sources or tools – focused on governance, community engagement, understanding investment models, business planning, financial modelling, training and marketing.
Micro Grants
Communities can apply to our Micro Grant Fund for up to £3,500 to market and promote their democratic finance community engagement campaign. The Micro Grant has previously funded launch events, promotional videos, marketing materials, website updates, social media and PR campaigns.
