Foresters is a community development finance institution (CDFI) that provides financial products and services to underserved individuals and communities in Australia. It has a non-profit holding company structure with subsidiaries that have an Australian Financial Services License and Australian Credit License. Foresters offers loans to individuals experiencing financial exclusion as well as organisational finance to non-profits and social enterprises. It also has investment products through a wholly owned subsidiary that are matched to the finance needs of its markets. Foresters' vision is to empower communities through self-determination and its mission is to provide innovative financial solutions that support social change.

1. Understanding Foresters
Community Finance
Social Finance Conference
Sydney 8th August 2013

2. Overview
• Foresters 101
– Vision and Mission
– Company Structure
– Individual Finance
– Organisational Finance
– Investment
• Myth busting

3. Vision
People and communities helping themselves.
self determination, empowerment,
community defined outcomes,
collective impact, place based action,
community development

4. Mission
Innovative financial solutions with people and
communities.
Finance products that reflect an
understanding of the market, responsiveness
to market needs and that support social,
cultural and environmental change.

5. Community Development Finance Institution
CDFI
Foresters Members Limited
Non-profit holding
company.
Social Investment Australia
Ltd.
Australian Financial
Services License
Foresters Community Finance Ltd.
Australian Credit License
Demand
Finance for
underserved
or emerging
markets
Supply
Capital raised
from investors
via investment
products.
Loan
originator and
financier
Product
designer
and fund
manager.

6. Individual Finance
• Australian Credit License (ACL)
• Capital provided through NAB
• Focus on individuals experiencing financial
exclusion
• Triage systems focused on financial solutions,
including capability building.
• High touch loan application process focused on
building knowledge about financial position and
capacity.
• Loans that address financial exclusion

7. Demand driven product suite
• Fair Finance Loan
• Disability Equipment Loan;
• Car repair loan;
• Loan for young people entering
apprenticeships
• No Interest Loan
• Quickstart

8. Organisational Finance
• Supporting non-profits and social enterprise
to develop and grow through their vision and
mission.
• Comprehensive due diligence model focused
on building knowledge and capacity.
• Technical support program.

9. Demand driven products and services
• Property finance
• Business development finance
• Service development finance
• Equipment finance
• Expanded technical support services – legal,
financial, property, strategy.

10. Outcomes

11. Investment
• Wholly owned subsidiary company, Social
Investment Australia Ltd. AFSL for wholesale
investment.
• Designs and delivers investment products in
the form of managed investment funds
matched to the finance needs of our markets.
• Investors include high net worth individuals,
institutional investors, foundations, PAFS.

12. Investment Products
• Community Finance Fund, Social Enterprise –
property investments.
• Social Enterprise Finance Fund – business
investments for growth of existing enterprises.
• Early Stage Social enterprise Fund – business
investment for early stage ideas.
• Community Finance Fund Non-Profit –
property investments including social housing.

13. Action Insights
• Building supply does not mean demand will
follow – market building is crucial to success.
• Underinvestment is not a sign of limited
opportunity – high quality intermediation is
crucial to success.
• Australia is not an island when it comes to this
work – defining the role of government policy
and funding is critical to the future of this market.
• We understand what we are doing – delivering
finance…but do we understand why?