Center for Social Innovation


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Speaker: Dave Kranenburg
Session: Slow Money Financing: Building our Capacity for Capital

Published in: Business, Economy & Finance
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Center for Social Innovation

  1. 1. WORK•CONNECT•CREATE•TRANSFORM @csiTo @davekburg
  2. 2. The Centre for Social Innovation is home for people CREATING A BETTER WORLD. We provide non-profits, social ventures, community leaders and social entrepreneurs with the spaces, relationships and knowledge they need to grow their ideas and create impact.
  3. 3. In September 2012 we opened the doors to 10,000 sq ft of space in Canada’s largest public housing community. 2012 In 2010 we purchased a 36,000 sq ft building and brought our total membership to over 300. We became the first non-profit organization in Canada to issue community bonds, raising $2 million to complete the building purchase. e opened an additional 14,000 sq ft service to more than 120 members. 2010 2007 2004 In 2004 we opened the doors to 5,000 square feet o in Toronto, Canada in support of 14 social mission o
  4. 4. The model is simple: Members pay fees in exchange for access to space, networks and programs. .
  5. 5. Our members include more than 625 organizations and projects. They are tackling issues from farming to finance and everything in between.
  6. 6. The Community Bond is an interestbearing loan that is accessible to unaccredited investors and can only be issue by nonprofit organizations.
  7. 7. CSI Annex: Purchased with Community Bonds How to buy a $6.8M building with only $50,000 in the bank? • Ontario Securities Commission Not-for-Profit Issuer prospectus and registration exemption, allows nonprofits and charities to issue securities • Loan guarantee from City of Toronto & secured by the building • $2M down payment through Series A community bonds • RSP eligible
  8. 8. What’s Next for the bond? Share what we know: Profile others: Protect RRSP eligibility: The West End Food Co-op runs a local farmer’s market in Toronto and is dedicated to advancing the cause of food security. They are using a super accessible community bonds – selling at a price of $500 each with a 2.5% interest rate – to finance the purchase and The banks of a new naturalmortgages to renovation no longer allow food store in be held inside RSP accounts. the city’s west end.
  9. 9. rewards-based crowdfunding focused on social enterprises
  10. 10. The Rewards Designed for social networks & market validation. $10 = thank you note $20 = + ‘spicy green’ salad mix $25 = + button $30 = + worm poop! nmbcvcv$50 = + T-Shirt $75 = + shade-cloth $100 = + two tomato seedlings (heirloom of course!) $150 = gardening crash course $250 = course & all the goods! $500 = bike tour & picnic The Costs 5-8% platform fee ~3% processing fee Cost of supplying rewards
  11. 11. Catapult Microloan Program provides loans of $5,000-$25,000 for earlystage social enterprises.
  12. 12. $600,000 loan program launched in May 26 2013 Catapult: Designed for character, critical feedback, support and celebration. • 150 applications to the 4:1 Application • 90 eligible for Catapult • 6 finalists identified • 4 received loans totaling $70,000 on September 12th THAAT Co-Op • required capital to purchase additional cargo bikes & meet demand of local businesses
  13. 13. Social finance trends What we’ve learned: • Business as ‘unusual’ still requires a plan. • Double-meaning of social is important and both must be present for success. Where it’s going: • Crowdequity • From trusted-networks to trusted platforms • Measurable social impact
  14. 14. @davekburg