center for social innovation
DESCRIPTION
Speaker: Dave Kranenburg Session: Slow Money Financing: Building our Capacity for CapitalTRANSCRIPT
WORK•CONNECT•CREATE•TRANSFORM
@csiTo@davekburg
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.
2004
2007
2010
2012
In 2004 we opened the doors to 5,000 square feet of space in Toronto, Canada in support of 14 social mission organizations.
In 2007 we opened an additional 14,000 sq ft of space in service to more than 120 members.
In 2010 we purchased a 36,000 sq ft buildingand brought our total membership to over 300.
We became the first non-profit organization in Canadato issue community bonds, raising $2 million to
complete the building purchase.
In September 2012 we opened the doors to
10,000 sq ft of space in Canada’s largest
public housing community.
The model is simple:
Members pay fees in exchange for access to space, networks and
programs..
Our members include more than
625 organizations and projects.
They are tackling issues from farming to
finance and everything in
between.
The Community Bond is an interest-bearing loan that is accessible to unaccredited investors and can only be issue by nonprofit organizations.
CSI Annex:Purchased with Community Bonds
• 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
How to buy a $6.8M building with only $50,000 in the bank?
www.communitybonds.ca
What’s Next for the bond?
Share what we know:
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 renovation of a new natural food store in the city’s west end.
Protect RRSPeligibility:
The banks no longer allow mortgages to be held inside RSP accounts.
Profile others:
CSICatalyst.org rewards-based crowdfunding focused on social enterprises
The Rewards
$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 feeCost of supplying rewards
csiCatalyst.org:Designed for social networks & market validation.
Catapult Microloan Program provides loans of $5,000-$25,000 for early-stage social enterprises.
$600,000 loan program launched in May 26 2013
• 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
Catapult:Designed for character, critical feedback, support and celebration.
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
