1. Jo Bird Co-operative Business Consultants Sept 2013

2. Grants Supply chain Loans Equity Core, project, sponsorship Prepayment, credit, in kind Secured, unsecured, bond Withdrawable, transferable, mutual

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4.  1844, Rochdale Pioneers set up co-op shop  28 founder members  £1 each to rent a shop and buy initial stock  £1 worth c£100 today – this was a community share issue  Successful model taken up by thousands  But tradition lost in last century

6.  Voluntary and open membership  Democratic member control  Member economic participation  Autonomy and independence  Education, training and information  Co-operation among co-operatives  Concern for community

8.  Community shares has mushroomed  300 Societies registered  120 share offers completed  Over £20 million raised from 24000 people  Average amount raised £200k  Average 240 members investing £900  Many share offers offer 3-8% interest

10.  Membership offer: To recruit members Nominal share capital.  Pioneer offer: Small group of founder members raise high risk capital. Ideal for Seed EIS.  Target-bound offer: To raise a target amount. Ideal for S/EIS.  Open offer: To maintain open membership and allow withdrawals, supported by track record.

11. Community Shares

12.  Regular communication with members – mailing list, newsletters, facebook, website  Maintaining momentum  Public meetings –to introduce the idea, and to launch  Local and national media coverage  Activities, campaigns and working groups

13. Members Activist Customer Volunteer Investor Service user Worker Supplier Director Expert

14.  HMRC scheme  30% tax relief with EIS  50% tax relief with Seed EIS, <2 yrs trading, up to £150,000 share offer  Loss relief  More return than a cash ISA  Cannot withdraw shares for 3 years  Some sectors are excluded inc financial services, on-lending, farming, land, property  www.hmrc.gov.uk/eis/ www.hmrc.gov.uk/eis/

15. Underwriting offers:  Appraisal report and due diligence  Community reassurance  Enable asset purchase  Fills shortfall, max a third up to £50,000  Enables monthly instalments  Arrangement fee 2% and interest 8%

16.  Not possible for Company Limited by Guarantee to issue shares  Expensive for Company Limited by Shares  Community Interest Companies  Regulated by FCA under FSMA 2000.

17.  A unique form of capital  One-member-one-vote not one-share-one-vote  £20,000 maximum holding of withdrawable shares  Withdrawable shares cannot increase in value, but can decrease  Withdrawable under certain conditions  Interest can be paid on shares  Mostly outside remit of FSMA 2000

18.  But share offers are still covered by the Misrepresentation Act 1967  The share offer document must offer a fair view of the proposal on which people can rely  The FCA still has an interest – good practice guidelines have been developed with the Community Shares Project

20.  Tree work and wood fuel business  Part buy out of sole trader in 2012  Raised £140,000 from 140 members  Minimum £200 investment  Gained EIS afterwards

23.  Football club formed due to rising ticket prices and market failure  2,000 fans attend non-league matches  3 teams  Raised £1.7m from 3,000 members  EIS  Share offer still open  Minimum £200  £5m blended finance inc grants and loans

25.  Pub in village of Hesket Newmarket, Cumbria  Came on the market in 2002  Concern about future of last pub in village  The community bought the pub a year later  124 members with an equal stake of £1,500  Members elect a Board of between 3 and 15  The co-op appoints a licensee – experienced local pub manager – to run the pub  Turnover increased from £90k to £250k  Now provides 12 local jobs

29.  Set up to install a 65kw water turbine on River Leith in the small town of Balerno near Edinburgh  Will generate electricity, sold to National Grid, income from Feed In Tariff (FIT)  Members elect a Board, but 3 Directors appointed by Balerno Village Trust  Total financial package of £313,000  Raised over £150k community shares, plus grants and loans  Seed EIS tax releif  £60k a year for community projects

30. Free grant for advice and support From the Co-operative Group To set up or grow co-operative enterprise Registration as a co-operative Membership, democracy, decision making Business and financial planning Community share issues Can re-apply after 12 months www.co-operative.coop/enterprisehub

31. Community Shares www.communityshares.org.uk Co-operatives UK www.uk.coop Co-operative and Community Finance www.coopfinance.coop Co-operative Business Consultants www.cbc.coop