Community Shares: promoting enterprise, equity and engagement through community shares and bonds

With the gloomy economic climate being topic of choice in all sectors, community-owned enterprises and the Government are set to provide a shining light leading the way for communities across the country to create common wealth in their local areas and transform communities for good.

With investment from the Office of the Third Sector’s Social Enterprise Action Learning Fund, the Department for Communities and Local Government is leading an action learning research programme in the field of community shares and bonds.The research programme will be managed by the Development Trusts Association (DTA), in conjunction with Co-operatives^UK and the UK Social Return on Investment network (SROI).

Building on the DTA publication Community Shares and Bonds: the sharpest tool in the box and the Co-operatives^UK publication Community Investment: Using Industrial and Provident Society Legislation, the programme seeks to develop a more robust evidence base on the potential for community share and bond issues to increase community empowerment, grow social enterprises, and support wider Government objectives as well as test the potential for incentive funding from Government to stimulate funding from non-governmental sources.The research gathered is intended to inform the next Comprehensive Spending review.

Hugh Rolo, Head of Assets and Investment at the DTA said: “In risky times enterprises need capital not more debt—an increasing number of communities are finding that local people also like the direct proposition of investing in something they can see and touch and benefit from. In December 2008, local people in Settle in Yorkshire raised £100k through a share issue to build a mini hydro-electric scheme in their town. I think other communities will want to follow their example“

The action research programme, Community Shares: promoting enterprise, equity and engagement through community shares and bondswill be launched at the Voice ’09 social enterprise event next month in Birmingham.Three awareness-raising events in the North and South of England are also planned in April followed by a series of “surgeries” across the country for groups who want to test out and develop their thinking.The programme will then focus on up to 10 specific share and bond issues.

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Notes to editors:

Community Shares: promoting enterprise, equity and engagement through community shares and bonds – Programme information:
Further information on this programme is available at www.communityshares.org.uk

Community Shares and Bond Issues: the sharpest tool in the box (DTA, 2007):
Written by Chris Hill of the Camberwell Project with assistance from Malcolm Lynch and Jason Curtis of Wrigleys Solicitors. This publication is available to download for free at www.dta.org.uk/communityshares.Paper copies can also be purchased direct from the DTA for £10 each incl. postage and packaging.

Community Investment using Industrial and Provident Society Legislation (Co-operatives^UK 2008):
Written by Jim Brown, Baker Brown Associates.This publication is available to purchase direct from Co-operatives ^UK for £15 per copy including postage and packaging.To order a copy, please contact Laura Chillag at laura.chillag@cooperatives-uk.coop or telephone 0161 246 2953.Further details can be found at http://www.cooperatives-uk.coop/live/cme2397.htm

Development Trusts Association:
The Development Trusts Association (DTA) is the leading network of community enterprise practitioners, and is aiming for a successful development trust in every community. The DTA helps people set up development trusts and helps development trusts to learn from each other and to work effectively. The DTA also influences government and others at national and local level, to build support and investment for the movement.

Development trusts are community organisations using self-help, enterprise, and asset ownership, to find local solutions and transform their community for good. There are now over 450 development trusts in DTA membership, in both urban and rural areas. While many are still small, others are operating at scale: the combined turnover is £263m and development trusts have over £489m of assets in community ownership. For more information on the DTA visit www.dta.org.uk.

Co-operatives^UK:
Co-operatives^UK is the national membership organisation for co-operatives of all kindsAs the apex body of the UK co-operative movement it has a diverse and growing membership of over 500 co-operative and mutual enterprises in all sectors of the economy, federations (which in turn have their own membership base) that represent distinct co-operative sectors, and organisations that specialise in the start up and development of new co-operative and mutual enterprises. 1 in 5 of the UK population is a member of a co-operative.

It provides information and support on a wide variety of topics relating to the operation duties of IPSs, including those of secretaries and directors. It has a number of model rules for bodies wishing to register as IPSs, including community investment models.For more information on Co-operatives^UK visit www.cooperativesukcoop

SROI UK:
The SROI Network is a membership organisation for practitioners, academics, funders and investors who have an interest in the use and development of the Social Return on Investment (SROI) methodology. The Network works with social investors and is releasing an online version of SROI. The current directors are SROI practitioners with experience of working with and training public, private and third sector organisations in the use of SROI.The SROI Network is dedicated to the consistent and effective use of SROI. The growing membership is led by accredited practitioners who have pioneered SROI in England, Ireland and Scotland. For more information on the SROI Network visit www.sroi-uk.org.