The document discusses different structures for social enterprises to raise capital from communities, including community interest companies (CIC), low-profit limited liability companies (L3C), and cooperatives. It notes that cooperatives draw primarily on community financial resources and can use various investment vehicles. The document also describes Ontario's cooperative "Offering Statement" regime, where cooperatives preparing to market securities to non-members prepare a disclosure document that is approved by the government. This helps raise community capital by showing investors a viable plan and protecting them from losses.

1. Hybrid Structures: Raising Community Capital Social Finance Forum November 18 , 2008 Presented by Brian Iler

2. Structuring Social Enterprise Choice of structure will vary – in part - with the intended source of capital: from wealthy individuals with a social conscience? CIC an interesting option from PRIs - L3C may be suited from the community served – often the choice will be a co-operative –the original “hybrid”

3. Co-operatives Some co-operatives are primarily social, or even charitable Others operate closer to the business end of continuum All co-operatives are a hybrid of social and business objectives – the difference is in the weighting

4. Characteristics Co-operatives: Are based in the community served Are democratically controlled Primarily draw on their community’s financial resources for capital Have a wide range of available investment vehicles

5. Raising Community Investment Capital Two issues: Capital campaign must be cost-effective and reasonably efficient Vulnerable potential investors need protection For those who are familiar with the social enterprise, usually no regulation. For those who aren’t – some form of risk disclosure is indicated – and required

6. Ontario’s Unique Co-op “Offering Statement” Regime Where exemptions not available, or the marketing of co-op securities would be enhanced by a government approved disclosure document, an Offering Statement is prepared and approved (“receipted”) by government. “ Full true and plain disclosure of all material facts”

7. Does an Offering Statement help Raise Community Capital? Yes. Evidence of viable business plan Government review gives investors comfort Clear statement of risks up front provides protection in the event losses incurred

8. Available for Non-profits? Not yet. Some non-profits are exempt from any regulation Ontario Non-profit Network has proposed the co-op offering statement regime for Ontario’s new non-profit law