Financing Community Organisations
Ben Gales, August 2013
FINANCING COMMUNITY ORGANISATIONS
• Background on SEFA
• How we can help you achieve your social mission
• Lending responsibly - the 5 C’s of Financing Community
• Case study - Myrtle Park
• SEFA is a social enterprise that lends to other social enterprises
with a focus on community, indigenous and environment
• We seek to be an important contributor to the long-term
development of the social enterprise market in Australia
• SEFA is one of the Australian Government’s Social Enterprise
Development and Investment Funds (SEDIF)
• NSW ALC, Triodos, Community Sector Bank, foundation, individuals
• Seeking financial and social returns.
• SEFA has made loans to community projects in regional
– Crisis accommodation in Cairns;
– Low income retirement housing in NW Tasmania; and
– A community school in Kuranda in Queensland.
HOW SEFA HELPS YOU ACHIEVE YOUR MISSION
• We provide loans to community organisations to enable them to better achieve
their social mission
The 5 C’s of Financing Community Organisations
Responsible lending - an “appropriate” risk
for the community organisation and SEFA
• You – the people who run
the community organisation
• How well is your
• Do you have the right
financial reporting and
governance in place?
• Do you have local
• How strong is your business
• Will the cashflow you
generate enable you to
(comfortably) repay the
• Is your income diversified?
• What is the state of the
market you are operating in
and how well are you
• Is there high demand / need
for your product / service?
• What is the social impact
that our loan will help you
• What is the “capital” in your
How resilient is your
• This can be financial – cash –
but we also look at the
strength of non-cash /
• Having sufficient capital
means that you can weather
any unexpected setbacks.
• SEFA lends responsibly to
ensure your and our
• Security is an important
factor in risk assessment
• Having a loan backed by
security reduces the lenders
• This reduces the interest
charged to you
Case Study – Myrtle Park
• Myrtle Park Retirement Centre is based at Yolla in NW Tasmania.
A community organisation that provides low income retirement
• SEFA is funding four new two-bedroom units. Prefabricated
housing units that have a high environmental rating.
• Each unit costs about $120k ($40k of foundations) and rents are
about 1/3rd aged pension.
• Bank loans were not available. Security is existing units and land.
Organisation has been in existence for 22 years.
• A remote community that is keen to provide low income housing
for retired people from district.
Case Study – Myrtle Park
local community support –
volunteer members – with
the build managed by
Tasbuilt Homes – Strong
and resilient team
income and minimal
expenses due to
community volunteers –
strong cashflow to
Conditions: Myrtle Park provide affordable
retirement accommodation in Yolla, a
disadvantaged area in North-west Tasmania –
Capital: limited cash
reserves but minimal
expenses and strong
community support –
Collateral: land and
buildings owned by
Myrtle Park – Good