community shares

1. Introducing Community Shares
The rise of direct, positive investment
communityshares.org.uk

2. What are community shares?
A form of withdrawable, non-transferable share capital unique to co-
operative and community benefit society legislation.
Unique to
co-operative
and
community
benefit
societies
Non-
transferable,
nominal
One Member
One Vote
Exempt from
regulation
under the
FSMA 2000
Interest
payment only
sufficient to
attract
investment
Powered by Withdrawable Share Capital

3. Community shares successes

4. The value of community shares
Capital
“Community
shares offers
can provide
long-term risk
capital linked
to the
performance
of the society”
Leverage
“Community
share offers
can lever
further
funding based
on the ‘first
move’ of the
community”
Governance
“Community
shares can
give members
meaningful
involvement
in the running
of the society”
Operation
Community
share offers
can ‘bake in’
the customer
base and
promote
member
involvement
in the
operation of
the
enterprise”

5. The Limitations of Debt : The Importance of
Equity
Equity is
patient and
engaged
Flexible
Risk sharing
Seeks
security
Controlling
and
disengaged
Debt is
mechanistic
Debt Equity

6. Source: Community Shares Directory, CSU
New registrations of co-operative and community benefit societies seeking to issue community shares
(2004 – 2015 Q3)
6 8
29
55
103 105
141
111
141
2004 2008 2009 2010 2011 2012 2013 2014 2015
Community Shares Market: no. of registrations

7. Source: Community Shares Directory, CSU
Community share offers launched by co-operative and community benefit societies
(2004 – 2015 Q3)
5 7
17
21
38
49
60
63
54
2004 2008 2009 2010 2011 2012 2013 2014 2015
Community Shares Market: no. of share offers

8. Source: Community Shares Directory, CSU
Regional location of societies launching community share offers (2015 Q1-Q3)
East of England, 0
East Midlands, 0
London, 2
North East, 1
North West, 9
Northern Ireland, 1
Scotland, 5
South East, 10
South West, 16
Wales, 2
West Midlands, 6
Yorkshire, 2
Community Shares Market: by region

9. Source: Community Shares Directory, CSU
Broadband, 1
Community retail, 2
Energy and
Environment, 36
Fair trade, 1
Food and Farming, 2
Pubs and Brewing, 4
Regeneration and
Development, 3
Sports, 4
Transport, 1
Community Shares: by sector
Sector breakdown of societies launching community share offers (2015 Q1-Q3)

10. Key market indicators (2009-2015)
Over 600 new
societies registered
Over 250 share
offers launched
Est. £60m raised
from over 50,000
members
Average offer:
£250,000
Average
membership
250 members
Average
investment per
member (based on
Microgenius): £510

11. Key pillars of a successful share offer
Business
model
Viable
Profitable
Sustainable
Community
engagement
Scale and
scope
Attracting
support
Building
membership
Governance
Legal form
Rules
Conduct
Offer
document
Accurate
Informative
Share offer
‘campaign’

12. Guidance and compliance: The Handbook
Consolidation of all advice
materials to form Community
Shares Handbook
Oversight from a technical
committee of government
representatives and FCA
Collaboratively developed
with practitioners through an
online platform
Regularly updated and
monitored to ensure
relevancy and accuracy

13. Community Shares Standard Mark
The Standard Mark can be
awarded by practitioners, who
are licensed by CSU. Licensed
practitioners are subject to the
complaints service, and can
ultimately be de-licensed by
the CSU.
The Standard Mark is awarded
to the community share offer in
recognition that the society is
complying with good practice.
Good practice is embodied in
the Community Shares
Handbook.
The assessment includes the
review of the:
- Offer document
- Application form
- Governing document
- Business plan
CSU maintains a public enquiry
and complaints service, with
the ultimate sanction of
removing the Standard Mark
from a share offer.
A voluntary scheme, supported
by the FCA and Money Advice
Service.

14. Get in touch
www.communityshares.org.uk
www.microgenius.org.uk
www.wales.coop / info@wales.coop