2. Alternative financial Models:
What alternative financial

3. 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

4. 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

5. What are community shares?

6. 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

7. 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

12. Case study – Swansea Community Energy and Enterprise Scheme
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

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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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?

20. Contact us Carly McCreesh, Project Manager Claudia Limpert,
Business Adviser
Wales.coop/community-shares-wales
Phone

21. Thank You!!
Any Questions??