Alternative financial Models: What alternative financial

Market position Alternative finance has doubled in size year on year (2012) £267m £666m (2013) £1.74bn (2014) Outlets have become more mainstreamed e.g. crowdfunder, Ethex , GoFundme Important to recognize role alternative finance is playing on local economy Current crowdfunder page ; Energy, media, pub, campaign, heritage site, community building hub, sports facilities, farming/agriculture project http://www.crowdfunder.co.uk/

What support is available to support alternative finance Wales Cooperative Centre – Community Shares Wales, Care to cooperate, Cooperative Housing, Digital and Financial Inclusion WCVA – social investment cymru, micro business loan fund Social banks – charity bank, tridos, cooperative community finance CVCs – support for business support and capacity building Coalfields Regeneration Trust Social Firms Wales DTA Wales Business Wales Big Lottery Fund – e.g. CAT Programme, People and Places Credit Unions Timebanking – SPLICE , Time banking UK Local Giving project

What are community shares?

Main markets for Community Shares Community Renewables Community pubs, especially rural Community shops, especially rural Community centre and buildings Farms and land Most successful community share issues are focused on an asset

When do community shares work well? Buying or creating an asset Does the community value the asset? A viable business model Leaders that the community respects and trusts The more money you need to raise, the harder it is Rates of return between 3 and 8% Patient capital To re-finance debt When Tax relief is offered If the scheme is seen to be supported by the public sector

Case study – Swansea Community Energy and Enterprise Scheme https://youtu.be/AJI1MapXCio Project initiated by local council and taken forward by community Installed solar PV panels on 9 schools and 1 care home Raised £425k to pay off construction loan

Bristol Community Ferry Boats Set up in 2013 to purchase ferry boats Almost 900 shareholders Raised £250,000

Valley Steps WCVA Wales Wellbeing Bond Service to reduce anti-depressant prescribing in Cwm Taf Interventions that offer viable alternatives to anti-depressant prescriptions Savings made to the anti-depressant prescription budget These are shared between Valley Steps and the Health Board

Mustard Seed Property Launceston, Cornwall Formed as Community Benefit Society 2007 Address need for accommodation for persons with learning disabilities 6 bedroom house used as supported accommodation for vulnerable adults Raised finance through community shares, and loan from Tridos Bank

Strontian Community School Existing primary school found unfit for use in statutory consultation Community group building own school Designed for eventual use as housing Raised £152,000

How can the public sector benefit from alternative finance? Becoming a shareholder in the business – would have a vote in the organisation –investor relationship on equal footing to community Converting grants to shares – encouraging further leverage of funds – giving confidence to community to invest Clear democracy and genuine community ownership Strengthen balance sheet of organisation taking shares – increases potential to take on other debt and attract grant funding Can support services/markets which struggle to attract grants/investment – e.g. start up enterprise, sports Recycling of funds locally – local employment, sourcing and engagement

Community Shares Wales- how can we support you Delivered by the Wales Co-operative Centre Funded by the Big Lottery Fund 3 year project Pan-Wales 3 tiers of support: Scoping – are community shares right for you? Developing – putting together your share offer Reviewing – ensuring quality of share offer

Quick activity….. What behaviour change or actions would you need to see within your organisation to promote and use alternative finance to fund some of your public services? What areas do you see potential for alternative finance to be used and what do you envisage will be the barriers, if any?

Contact us Carly McCreesh, Project Manager Claudia Limpert, Business Adviser Wales.coop/community-shares-wales Email csw@wales.coop Phone 0300 111 5050

Thank You!! Any Questions??