Community shares are a means of raising capital for enterprises serving a community purpose by selling shares to local people. The key aspects are that they must raise at least £10,000 from no fewer than 20 members, shares are withdrawable (can be sold back to the organization) rather than transferable, provide interest payments only sufficient to attract investment, and have one member one vote governance structure. Over 120 community share offers have been completed since 2001, raising over £15 million for organizations like community shops, pubs, renewable energy projects, and local food/farming. The Community Shares Unit was created to help grow the market for community shares and provide resources for communities, investors, and practitioners.

2. What are community shares?
“The sale of shares in enterprises serving a community purpose, with
the aim of raising at least £10,000 in capital from no fewer than 20
members”
Powered by withdrawable share capital
Unique to Interest
co-operative Exempt from payment
Non-
and One Member regulation only
transferable,
community One Vote under the sufficient to
nominal
benefit FSMA 2000 attract
societies investment

3. Community shares registrations
120
100
80
60
40
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
to Aug

4. Community shares 2009-present
Renewable
248 new societies 80 share offers energy
registered completed
Community
shops and
£15.2m raised Average raised
pubs
from over 15,000 £195,000
members (median £80,000)
Local food and
farming
Average Average
membership 192 investment per
(median 150) member £1,029
Sports and
heritage

5. Community share offers: Four pillars
Business Community Offer
Governance
model engagement document
Growth Scale and
Legal form Purpose
stage scope
Income Attracting
Expertise Demand
generation support
Capital Building
Conduct Timeframe
requirement membership
Necessary but not sufficient
Overlapping and pervasive

6. Community shares and community finance
Leverage: equity and debt provision
Confidence: due diligence and underwriting
Inclusivity: instalments, thresholds
Proof of concept: early-stage finance

7. Case Study: FC United

8. Introducing the Community Shares Unit
Vision: to grow the market for community shares
DCLG-funded programme for three years
Partnership between Co-operatives UK and Locality
(building on an action learning research programme)
A resource for:
Intermediaries, practitioners
Communities looking to Investors exploring the
and business-support
develop share offers community shares market
community

9. How can the CSU help you?
Brainstorm and feedback from three groups:
Practitioners currently
involved in a
community shares
initiative
People with more
general interest, Practitioners
maybe as deciding whether
potential community shares
members, is relevant to their
investors or activities
volunteers

10. More information
www.communityshares.org.uk
www.uk.coop
locality.org.uk
communityshares@uk.coop