Hybrid Structures:  Raising  Community  Capital Social  Finance Forum November 18 ,  2008 Presented by Brian Iler
Structuring Social Enterprise <ul><li>Choice of structure will vary – in part - with the intended source of capital: </li>...
Co-operatives  <ul><li>Some co-operatives are primarily social, or even charitable </li></ul><ul><li>Others operate closer...
Characteristics <ul><li>Co-operatives: </li></ul><ul><li>Are based in the community served </li></ul><ul><li>Are democrati...
Raising Community Investment Capital <ul><li>Two issues: </li></ul><ul><li>Capital campaign must be cost-effective and rea...
Ontario’s Unique Co-op “Offering Statement”  Regime <ul><li>Where  </li></ul><ul><ul><li>exemptions not available, or </li...
Does an Offering Statement help Raise Community Capital? <ul><li>Yes. </li></ul><ul><li>Evidence of viable business plan <...
Available for Non-profits? <ul><li>Not yet. </li></ul><ul><li>Some non-profits are exempt from any regulation </li></ul><u...
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Hybrid Structures: Raising Community Capital

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Presented by Brian Iler at the Social Finance Forum at MaRS, Nov 18, 2008

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Hybrid Structures: Raising Community Capital

  1. 1. Hybrid Structures: Raising Community Capital Social Finance Forum November 18 , 2008 Presented by Brian Iler
  2. 2. Structuring Social Enterprise <ul><li>Choice of structure will vary – in part - with the intended source of capital: </li></ul><ul><li>from wealthy individuals with a social conscience? CIC an interesting option </li></ul><ul><li>from PRIs - L3C may be suited </li></ul><ul><li>from the community served – often the choice will be a co-operative –the original “hybrid” </li></ul>
  3. 3. Co-operatives <ul><li>Some co-operatives are primarily social, or even charitable </li></ul><ul><li>Others operate closer to the business end of continuum </li></ul><ul><li>All co-operatives are a hybrid of social and business objectives – the difference is in the weighting </li></ul>
  4. 4. Characteristics <ul><li>Co-operatives: </li></ul><ul><li>Are based in the community served </li></ul><ul><li>Are democratically controlled </li></ul><ul><li>Primarily draw on their community’s financial resources for capital </li></ul><ul><li>Have a wide range of available investment vehicles </li></ul>
  5. 5. Raising Community Investment Capital <ul><li>Two issues: </li></ul><ul><li>Capital campaign must be cost-effective and reasonably efficient </li></ul><ul><li>Vulnerable potential investors need protection </li></ul><ul><li>For those who are familiar with the social enterprise, usually no regulation. </li></ul><ul><li>For those who aren’t – some form of risk disclosure is indicated – and required </li></ul>
  6. 6. Ontario’s Unique Co-op “Offering Statement” Regime <ul><li>Where </li></ul><ul><ul><li>exemptions not available, or </li></ul></ul><ul><ul><li>the marketing of co-op securities would be enhanced by a government approved disclosure document, </li></ul></ul><ul><li>an Offering Statement is prepared and approved (“receipted”) by government. </li></ul><ul><li>“ Full true and plain disclosure of all material facts” </li></ul>
  7. 7. Does an Offering Statement help Raise Community Capital? <ul><li>Yes. </li></ul><ul><li>Evidence of viable business plan </li></ul><ul><li>Government review gives investors comfort </li></ul><ul><li>Clear statement of risks up front provides protection in the event losses incurred </li></ul>
  8. 8. Available for Non-profits? <ul><li>Not yet. </li></ul><ul><li>Some non-profits are exempt from any regulation </li></ul><ul><li>Ontario Non-profit Network has proposed the co-op offering statement regime for Ontario’s new non-profit law </li></ul>

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