1. Community Investment in Community Supported Agriculture

2. What is community Investment? Community investment is the practice of members of a community buying shares or bonds in an enterprise that serves a community purpose. Members receive a fair return on their investment as well as sharing in the social, environmental or community benefits of the enterprise. Shares make people part-owners of the organisation with voting rights. Bonds are a form of loan to the organisation and do not confer membership or ownership

3. Changing public attitudes Most people are savers not investors, (and some people aren’t even savers) Most people donate to good causes, rather than invest in them But most people can invest more than they can afford to donate Shift from purely philanthropic to community investment proposition Investors make good customers, volunteers and active members of society

4. Growth in community investment Community investment practices date back to the nineteenth century. There has been a revival of interest in the last ten years.

5. Basic facts and figures At least 84 cases of enterprises with more than £10,000 of community investment Total community investment is £298m Combined membership over 6 million 41 new cases in last 10 years, raising over £45m from 63,4000 members Median amount raised is £135,000

6. Trade activities Trade activities of organisations issuing community shares or bonds since 1999 Number of organisations Community retail store10 Renewable energy9 Community finance7 Regeneration, land, buildings5 Transport (heritage railway preservation)2 Farming2 Utilities2 Fair trade1 Other3

7. Financial promotions Promoting an investment is completely different to asking for a donation. Donors give with no expectation of any financial return and no rights or legal title. Investors have expectation of financial return and with legal title over the investment, be it in the form of shares or bonds. Donations unregulated, anybody can ask for donations. Investment is regulated through Financial Services and Markets Act 2000 to prevent misleading promotions. Investment promotions to the public should only be made by corporate bodies with limited liability status.

8. Legal structure options Main options for community investment: Industrial and Provident Societies (IPSs) Public Limited Companies (plcs) Community Interest Companies (CICs) Registered charity and company limited by guarantee (bonds only)

9. Investment by legal form since 1999

10. Unique features of IPS share capital Withdrawable and/or transferable One-member-one-vote democracy Flexible cap on returns Upper limit on personal shareholding Withdrawable shares exempt from regulations under FSMA 2000

11. Further information Jim Brown is principal consultant for Baker Brown Associates www.bakerbrown.co.uk Jim.brown@bakerbrown.co.uk and lead consultant to: Community Shares Programme www.communityshares.org.uk