All Posts By

Christopher Trotman

The Argonaut Rowing Club: Case Study

By | Client Stories, Success Story

Filled with pride, Jason van Ravenswaay, president of the not for profit Argonaut Rowing Club had just finished giving us a tour of the club’s completely renovated facilities. It certainly didn’t look like this 2 years ago he laughed.

The Argonaut Rowing Club President, Jason Van Ravensway

In 2018, following catastrophic flooding in 2017, the Argonaut Rowing Club (ARC) set out on a 2-year journey to rebuild and revitalize their club.

The ARC team was motivated to go beyond just repairing the damage and saw an opportunity to work together with their community to build a club for the future. Working with Tapestry Community Capital, ARC was able to finance their dream project on their terms.

We’re proud to have guided their team through this successful raise and excited to share their story with you. If you are interested in learning more about what it took for the team to raise $1.2 Million in six months, download the case study by clicking the link below:

If you want to get started with your own community bond project or know of any interesting community bond projects that you think we should profile, get in touch to book a private Community Bonds Accelerator Workshop for your team.

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Woman working on a laptop

The Best Tool to Manage your Community Investors

By | News

In the age of Google, there are many manual-entry methods available for calculating interest payments. Whether it’s spreadsheets or giant accounting books, you know as well as we do that they aren’t sustainable, cost a lot of human-power (and with that, potential for human error!), and aren’t scalable. That’s why at Tapestry, our Investment Management Services are backed by a powerful little engine we adoringly call Atticus.

Why Atticus?

We could tell you that our software was inspired by the literary character Atticus Finch from To Kill a Mockingbird. He certainly represents all that we believe in – justice, morality, fairness. But to tell you that would be a fib..

…because Atticus is really named after a dog. And not just any dog, but the pride and joy of Tapestry’s former Community Investment Manager, Greg Goubko.

Our software, which Greg customized, refined and improved over the years became something of a child to him. Like his dog, Atticus became his loyal, intelligent and reliable companion. And so, it seems fitting that he leave a mark of his legacy with this special name.

And now, why use Atticus?

Forget Your Spreadsheets and Calculators

Atticus is a powerful database and accounting system at its core. It was custom-designed and built to aid in raising and managing community bonds. Atticus’ brain has the ability to calculate complex or simple bond configurations. We don’t waste time scrolling through sheets of data in Excel. And you shouldn’t either.

Trust in Data

Your data is safe with Atticus. Our system is secure and reliable. Our data is encrypted and stored right here in Canada. Our data is backed up nightly, weekly, and monthly all throughout the year. We comply with internal policies when accessing data and we never, ever transmit information unless necessitated by law.

Atticus Tracks Our Progress and Workflows

Raising a bond is exciting; it’s where the magical moments for your community happen. Managing a bond is where the practical deliverables need to be met. Atticus helps us keep on top of the thousands of bonds we currently manage. The system was designed to align with our workflows and ensure we don’t ever miss a step in the care of investments.

Reports

We’re able to create customized reports to do some hard analysis work. Whether it is a big-picture overview of an organization and its investors, or its getting to the granular details of daily transactions and calculations – if you ask Atticus about a number, it can answer it pretty quickly.

Communication

Atticus built with the ability to integrate seamlessly with third-party email services. It allows us to work in things like transactional emails to investors with the click of a button. Investors are alerted automatically when they purchase a community bond.

Argonaut Rowing Club completes $1.2 million community bond raise

By | News

Media Advisory

Historic Argonaut Rowing Club completes $1.2 million community bond raise to fund the ARC Next club revitalization

Toronto, ON, September 16 – The Argonaut Rowing Club, announced that their $1.2 million-dollar community bond campaign goal has been achieved. As a part of the club’s 5-year revitalization project called ARC Next, the club’s volunteer board of directors worked with Tapestry Community Capital to launch the bond campaign in March 2019, with a goal of raising the funds by September 15, 2019. The bond raise was well received by potential investors, with interest in purchasing bonds, exceeding the amount of bonds available. The bond raise goal was reached on September 13, 2o19.

When complete, the ARC Next club revitalization will support the next generation of rowers by offering a fully accessible space with a renovated event venue, new elevator, extended docks, new change rooms, enlarged weight room and an increased capacity for both membership and youth programming.

A celebration for club members and investors is being planned for early October.

About the Argonaut Rowing Club (ARC)

Founded in 1872 and located on the Western Beaches of Toronto, the Argonaut Rowing Club (ARC) is one of Canada’s oldest and largest clubs with a history of supporting Olympic and Paralympic champions. ARC provides programs for athletes, coaches, umpires and volunteers based on the Canadian Sport for Life (CS4L)/Long-Term Athlete Development (LTAD) model. Members at ARC include rowers of all ages, skill levels and abilities. They are supported by the ARC vision to inspire lifelong passions for the sport and to help their members achieve their personal level of excellence. For more information about the Argonaut Rowing Club, please visit www.argonautrowingclub.com.

About Tapestry Capital

Tapestry Community Capital is a not-for-profit co-op that supports other co-ops and non-profits in raising and managing community investment. Since 1998, the Tapestry team has supported some of Canada’s largest organizations across multiple sectors in successfully raising and managing $61 million from over 3,900 community investors. From investment structure, to branding and back-office support, Tapestry ensures each campaign and investment is managed reliably and professionally. Tapestry, and each one of their clients, strive to leave the world a better place. For more information about Tapestry Community Capital, please visit www.tapestrycapital.ca.

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Interviews, photos or more information:

Judy Sutcliffe
arcnext@argonautrowingclub.com
Argonaut Rowing Club

 

 

How does a community bond campaign work?

By | Education

Community Bonds are a proven social finance instrument that allow people of average means to transform from occasional donors into citizen investors, giving them the opportunity to align their money with their values. Once we have worked with your organization to determine that a Community Bond is a good fit, your organization will be ready to launch a Community Bond campaign!

The Tapestry Process will guide your organization from workshop to successful campaign in 12 months. This ensures that the campaign will be managed effectively, and every step needed to have the campaign be a success is put in place:

The Tapestry Process

  1. Structure
  2. Raise
  3. Manage

A clear process takes the guess work out of developing a community bond, and helps you  focus your energy on actually bringing the project to life, knowing that the required funding will be secured.

Community Bond - Planning and Feasibility
Planning and Feasibility (Typically 3 months)

Before we begin a Community Bond campaign with our clients, we have a range of services that allow us to prepare our clients for a successful campaign, and ensure that the intended project is a good fit for a community bond. Among these services, the Planning and Feasibility phase is one of the most crucial. This pre-campaign process allows us to test if a project will be successful. Some of the factors we look for include:

  1. Is this a project the community would be excited about?
  2. Is the project well defined?
  3. How much of the funds can be raise through the Community Bond?
  4. How will revenue be generated to repay the bonds?
  5. What bond price and interest rate will be attractive to the community of investor

Upfront work helps to avoid unpleasant surprises well into the campaign, and guides the structuring of the community bond.

Tapestry’s role

Even before the Feasibility Assessment, Tapestry offers a Community Bond Accelerator workshop where we conduct an initial assessment of the project idea. If we determine that the idea is viable, we’ll invite you to participate in the Planning and Feasibility phase. This includes:

  • Investor Research
  • Financial Feasibility
  • Resource Planning

One of the major deliverables that is produced from this phase, is a financial model that can be presented to investors, and clearly outlines the bond repayment plan. We bring our years of experience to help you determine if a Community Bond fits your project and forecasts the resource demands on your organization.

Community Bond - StructureStructuring the Bond (Typically 3 months)

Structuring the bond refers to all of the communications and resources that have to be brought together or created to issue a bond. On the most basic level, this refers to the bond prospectus or offering statement. This document provides potential investors with all the information they need to know about the organization and the bond before making an investment decision.

Once this work is complete, a strategy and tools focussed on effectively educating the community on the project, and selling the bond have to be developed. This can include a marketing and communications strategy, campaign website, and a variety of marketing collateral.

Finally, resources should be considered to communicate with investors for the life of the bond following the completion of the campaign. A bond campaign does not end once the raise is over–investors are interested in the project, and receive interest payments over the life of the bond. In addition, the capital investment is typically repaid at the end of the bond term. As such, some mechanism for tracking, communicating with, and paying investors on a regular basis needs to be put in place.

Tapestry’s role

Our structure module can more accurately be described as the structure and infrastructure module. It is during this time that we leverage all of the information that we gathered from your organization through the planning and feasibility module, to build the perfect bond campaign for your community!

This includes the development of a business plan, creation of an offering statement and investment package, required legal work, development of a campaign website and marketing strategy, and configuration of our investor management platform Atticus.  We help design campaigns that have all of the elements to attract community investors, corporate investors, institutional investors.

Community Bond - Raise

Raising the Investment (6 months)

Once your Community Bond is structured, it is time to raise the required capital to finance your community project! It’s at this time that your organization will engage in activities to both educate your community about the project and sell community bonds.

The most successful community bond campaigns have had a combination of both citizen investors, and institutional investors (often in the form of foundations).

It will take a strategy of ongoing and timely engagement to keep the momentum of your Community Bond campaign going, and to ensure that the full raise can be achieved.

Tapestry’s role:

Tapestry provides both the resources and expertise to supplement the experience already present on your organization’s team. We work alongside your organization to manage the community bond campaign and bond investors by: ensuring that key events are held; managing the distribution of important communication materials to investors; and closely monitoring milestones for the life of the campaign. With our assistance, your organization will be able to turn your passive supporters into active investors.

Community Bond - Manage

Community Bond Management (Ongoing)

The time allotted for a campaign raise is fixed, and once it has concluded, your focus will shift to managing investors for the life of the bond.  Investor management includes: investor onboarding, monthly/annual reporting, interest distributions, tax documention, and redemptions at maturity.

This step should not be overlooked. Aside from the legal requirements, it is important because happy investors are more inclined to reinvest in future projects!

Tapestry’s role

We help support communication with the Community Bond investors for the life of the bond. We’re able to do this effectively through the use of our proprietary investor management platform, Atticus. With our processes and through Atticus, we have been able to raise and manage $61 million dollars from 4400 investors.

What’s Next?

Community Bonds can be effectively leveraged for a variety of projects. While the process can seem daunting, the support of a partner like Tapestry makes it simple to manage.

Do you think you have a project that would be a good fit? Click the link below to contact us and start your project or attend our next Community Bond 101 webinar.

Get in Touch

Future of Good: What’s a Community Bond, Anyway?

By | Education

On August 14, we published a blog post in collaboration with the Future of Good, giving a primer on Community Bonds!

In the post, we explored why not for profit organizations need to diversify their funding sources, and the advantages/disadvantages of some of the financing tools available to not for profit organizations.

Here are the key takeaways from the article that we wrote:

Grants are essential but inconsistent

As one of the tools most readily available to not for profit organizations, we discuss grants quite a bit. While essential and hugely valuable, there are drawbacks to relying on grants. One of the main disadvantages is the relative lack of flexibility and stability.

In all cases, it’s the granting body that defines how a grant can be used, and typically, a not for profit organization will have to find a project that fits the granting parameters. Furthermore, it’s the granting body that decides when and under what circumstances the grant is available.

While organizations should pursue grants, caution should be taken in relying solely on grants for funding. In particular, for major capital development projects, relying on grants will likely be insufficient.

Using a range of tools provides a more secure funding base

In considering how to establish a secure funding base, organizations should seek to diversify their funding sources. This could include any range of funding vehicles including: fundraising, crowdfunding, social entrepreneurship, community bonds and grants.

A range of purpose specific funding tools like grants or community bonds, and flexible funding tools that can be used for anything, like donations or social entrepreneurship, will provide your organization with the ability to escape the endless granting cycle and plan for growth!

We’re strong believers in leveraging the entire investment continuum when reviewing how to effectively plan for long-term financing. Much like you wouldn’t hammer a nail with a screwdriver, you should consider the tool being used when considering what you’re trying to fund.

Community Bonds are an effective tool to finance your next capital development project

Whether you’re seeking a tool that can help to reengage existing supporters, or looking for a new tool that can jumpstart your capital development ambitions, Community Bonds are an effective resource for organizations of all sizes. They provide your community to feel a sense of ownership over the project being funded.

The full article is available on the Future of Good website. If you’re interested in reading click here:
What’s a community bond, anyway?

If you’re interested in learning more about community bonds, or signing up for our Community Bonds 101 webinar, to see if this innovative financing solution is right for your organization, click the link below:

The mount

The Mount Community Centre: Case Study

By | Success Story

We’re always on the look out for interesting projects to learn about, learn from, and wherever possible, profile for our community. We came across The Mount Community Centre, a charity that was founded by the Peterborough Poverty Reduction Network, a network of 40 non-profits and knew that this would be exactly the sort of story our community would be interested in.


Through the collaboration of an amazing group of dedicated community leaders, the support of engaged government stakeholders, and a bit of ingenuity, the Peterborough Poverty Reduction Network was able to do something amazing for their community. 

This is not a campaign that Tapestry Community Capital supported, but we were so impressed by the work of the team, we collaborated with The Mount to produce this case study, profiling the great work they did. If you’re interested in accessing the case study, click the link below. It will take you to a page where you can access the case study.

If you want to get started with your own community bond project or know of any interesting community bond projects that you think we should profile, please get in touchWe would love to hear from you!

 

How Inspirit Foundation does impact investing

By | Education

A Conversation with Jory Cohen: Inspirit Foundation

At Tapestry, we’re on a mission to help the not for profit sector more effectively pursue sustainable financing for their iconic community projects. To accomplish that goal we’re endeavouring to speak to as many stakeholders as possible!

This includes both people who have created iconic projects, and those who fund those projects. One of the key partners that help to bring these projects to life in the not for profit world is foundations.

We spoke with Jory Cohen, Director of Social Finance and Investment at Inspirit Foundation, to get his perspective on what makes for a worthwhile investment. Jory leads Inspirit Foundation’s finance and investment strategies. He is a leader in the Impact Investment field, and with the support of the Inspirit Foundation board, is leading Inspirit to a 100% impact investment portfolio. Before Inspirit, Jory was the Managing Director of Youth Social Innovation Capital Fund (YSI), an impact investing fund.

The full audio of our interview with Jory can be found at the end of this post.

About Inspirit Foundation

Inspirit is a public foundation based in Toronto. They work to build more pluralist societies–one where multiple groups can coexist. Inspirit works towards this mission through granting, impact investing, and working to make systemic change through young change leaders. The foundation’s granting activities are focussed on the main priorities of reconciliation and addressing islamophobia through a media and arts lens.

Our main interest in speaking with Jory was exploring the criteria that Inspirit Foundation uses to evaluate organizations from an impact investment perspective. The conversation was wide-ranging, but he provided three key takeaways that organization should consider when positioning themselves for investability.

 

Key Lessons Learned

“There is a higher likelihood of financial profitability alongside higher levels of impact (or), at least the intent of impact…”

There is sometimes an aversion in the non-profit world towards thinking of organizations like a business. Whether knowingly or unknowingly, this can result in short-term decision making that prioritizes direct program delivery over the long-term health of an organization. What Jory has found through impact investing, is that impact and profitability do not have to be mutually exclusive, and in fact, can go hand and hand.

As Jory explains, an investor can decrease their volatility by investing in organizations that have a focus on impact. The chances of a crisis arising, and a subsequent dramatic drop in the company’s value, is lessened when social good is at the centre of their business practice. This is part of the reason why Inspirit has moved towards 100% impact investing. It’s just good business.

To learn more about Inspirits impact investment practices, click here.

 

“We don’t like investing under $250,000.00 because investing is a lot of work. Every investment takes a few months from start to finish.”

Inspirit Foundation does not have a large team of people assessing investments. For that reason, Jory has to be selective about the types of investments that the foundation chooses to take on, and any opportunity under $250,000.00 will likely be too low for consideration.

In positioning an organization for investability, it’s important for organizations to be conscious of not asking for too little. While an organization may think that a smaller ask makes them more attractive because the amount is more accessible, it can actually have the opposite effect.

 

“Quite honestly, most (organizations) come to us. Canada is a small market for impact investing still and I think we’ve got the word out that we’re active impact investors, active in the sense that we like making investments.”

Inspirit doesn’t need to seek organizations out.

While the ecosystem is small, Canada still provides a healthy pipeline for investors seeking impact investment opportunities. What that means for not for profits developing investible projects is that they need to be proactive in seeking organizations out. This means more than just putting up a website.

Get your pitch ready, have your financials in order, and set up some meetings!

 

Full Interview Audio

If you’re interested in learning more about Inspirit Foundation, what they look for when investing in Community Bonds specifically, and how they approach impact investing more generally, check out the full audio of our conversation below.

If you’re interested in reading about Jory’s journey towards 100% impact investing, you can view his blog, Impact Invest with Me, by clicking here.

And, if you want to receive more stories like this directly to your inbox, signup for our newsletter The Threadby clicking here.

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The Thread: Tapestry Community Newsletter

By | News

Last week, the Tapestry Team launched the first edition of The Thread, Tapestry’s bi-monthly community newsletter.

The Thread Newsletter Header

We’re excited to be able to bring you news and events related to community bonds, social impact investing and not for profit organizations, engaging their community to do amazing things all around the world. If you haven’t viewed the newsletter and don’t want to miss out on future editions, click the link below:
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If you find an interesting piece of community bond news, have an event you want to feature, or just have questions/comments about the newsletter, please get in touch. We will review every comment and take it under consideration when designing the newsletter.

How the Argonaut Rowing Club raised $1 million in 4 months

By | Client Stories
Jason van Ravenswaay, President of the Argonaut Rowing Club

In March 2019, following a six month pre-campaign planning process, the Argonaut Rowing club launched Argonaut Rowing Club NEXT (ARC Next), a rebrand of their five-year revitalization project, designed to support current and future rowers for the next 50 years. Over the next 5 years, the club aims to attract over 80 new members, reach 15 local schools and support 80 young athletes.

In support of the campaign, the club is raising $1.2 million dollars through a community bond raise, to fund the essential upgrades that would offer a fully accessible facility, increased member capacity and youth programs. To date, there has been just over $1 million pledged to the campaign in under four months, with a deadline of September 15, to raise the final amount. We spoke with Jason van Ravenswaay, President of the Argonaut Rowing Club to get his perspective on the campaign so far.

What is the vision of ARC Next and what makes this project iconic?

Argonaut Rowing Club boat racks

In part, what makes the project iconic is that the rowing club has been around for a long time. We’ve had our, ups and downs over that time. At one point the rowing club even burned down. We’ve always come back stronger. The opportunity that we have is really bringing the club to the next level, reaching more youth, and becoming completely accessible for our para-athletes.

That’s the primary vision. Right now, we’re investing a lot in our youth. About 3 years ago, our junior program was 3 – 5 people. And, we’ve actively been growing that program, investing in coaching, in safety, in new rowing shelves so that these athletes can compete and have the opportunity to be successful.

With this ARC next campaign, we’re able to open up more space so that we can grow this program even further. Right now, we’re at 60 junior athletes, which is a lot. This program doesn’t really make money for the club. It actually costs us money, but we’re very passionate helping people get introduced into the sport of rowing and creating that passion.

Why is this so important?

For me it’s important because rowing has been an outlet. It’s been a way to be healthy, to enjoy the city, and the beautiful lake that we have the privilege of living on. And, I think what’s great is that rowing is addictive.

I want people to have the opportunity to feel what that’s like and to fall in love with the sport.

For yourself, what has been the biggest challenge in this bond raise so far?

Probably the biggest challenge is—we have a phenomenal leadership team behind this bond raise and on the board of directors, but the reality is that these leaders for the club are all volunteers. Everyone has jobs and careers outside of the rowing club. So, the challenge is really getting people energized.

We’re working late nights to get a lot of this stuff done, and you know, a lot of planning goes into this campaign. With the financial modelling, and the business plan and really thinking through what the next five to seven years look like. We’ve been thinking about and planning for this investment. We knew that we needed to do something, in particular looking at the flooding that’s been happening in our changing room.

Argonaut Rowing Club practice with woman's team

We’ve been making small investments in our program, that have moved us forward, but planning such a big one-time investment that gets us everything that we need to push all of our programs forward and to reach more in the community is a heavy lift. We’re really lucky that we have the leadership team that we do because they’re putting in tonnes of hours getting this done.

That’s been the hardest part of this campaign.

What has been the biggest surprise throughout this whole campaign?

The biggest surprise has been that a lot of people have the same passion for our club and for the impact that we have. They have come through and invested in ARC next.

I think probably the investors that kind of give me goosebumps are really the parents. People that aren’t rowing, but their kids have been through our programs and just how they reflect on their children’s experience and how it has changed their lives. How it’s gotten into their schools and how it’s created a network of friends that are strong, motivated individuals.

The parents want the club to be able to scale and have this impact on their children. Some of the parents that are sitting on our committee, their kids are actually off to university now, and they’re participating in the bond raise—whether that’s investing or actually being on the team—because of the impact that we’ve had on their kids in previous years.

It sounds like you’ve been able to cultivate a really amazing community around the club!

We’ve been really lucky and we have a lot of really great volunteers that are really driving the community and culture. We’re super grateful that everyone has been so engaged.

Argonaut Rowing Club woman rowing

You have surpassed the $1 million pledges milestone, what do you feel has been the biggest factor in your success to date?

We have a pretty strong vision and we have been working on a number of micro initiatives that have all kind of lined up right in front of this ARC Next campaign. As an example, a year and a half ago we assembled a grant committee, and they began figuring out what do we need to support our programs and what kind of grants are out there. Writing grant proposals is very time consuming and we had all that work done upfront and we successfully were awarded a grant at the beginning of this fiscal year which helped pushed this campaign forward.

So, for you it was all the prep-work that was done beforehand?

The prep work and the vision of all the different micro-components, like the banquet facility, which is critical to supporting this investment. With the banquet facility, really understanding the feedback from our client to know what types of investments are really going to elevate the space and allow us to demand higher fees and get more revenue out of that space. And, even before that making sure that we had the right management in place for the banquet space and we had some issues with water coming into the building so investing and building a wall at the front of the building to divert water away and into the lake. There’s just so many different components that have all come together this summer, but the club, it’s different. It’s a different space, it’s a different feel, it’s a different energy, and people are really excited and they want to be down there.

Argonaut Rowing Club woman and coachWoman being coached on rowing

How has Tapestry helped to bring this campaign to life?

Tapestry has been a tremendous support; we really didn’t know where to start only that we didn’t want traditional financing. Finding community bonds and Tapestry made our vision possible; especially for a volunteer organization like ours it would have taken years of work to get where we are today without Tapestry.

And, if you were going to give advice to someone who was considering embarking on a community bond campaign, what would you tell them?

Focus on impact. What is the impact that you’re going to have on your community. On the people or the environment, and really paint a picture of what that feels like. It’s important that people get the feels for what you’re doing. Sometimes it’s hard to communicate the motivation behind something but emotion is powerful.

The Argonaut Rowing Club staff, board members and committees are coming together to celebrate the momentous achievement of reaching the $1 million milestone on July 17th at the clubhouse to encourage the last round of investments from members, parents and stakeholders.

To stay engaged and up-to-date on all things ARC Next and to learn more about the project, visit www.arcnext.ca. See you on the water!

Two people reading a contract

Differentiating Community Bonds and Social Impact Bonds

By | News

Over the last decade, governments and social purpose organizations have been responding to the growing need for social and environmental services by developing and using innovative finance tools to both grow the base of community assets, and expand programming. Two tools that have received a lot of attention, and are gaining traction, are Community Bonds and Social Impact Bonds.

At Tapestry, we’re often asked what the difference is between these two tools, so in this article we will attempt to set the record straight.

Community Bonds, by definition, are a debt financing tool issued a by non-profit, charity or co-operative organization. In simple terms, Community Bonds give these organizations the opportunity to take loans of varying sizes directly from their community of supporters. Both sides win – their supporters are paid interest for investing in a project that is meaningful to them, and the issuing organization gains access to the capital they need to grow.

In order to repay their investors, organizations issuing Community Bonds must have a revenue model. For example, an artist co-operative might issue community bonds to purchase a building. They will have revenue streams from operating a storefront, leasing studio space to their members, and renting out their event venue. This artist co-operative would be a good fit for a community bond raise because they have a way to repay their investors and have a strong base of supporters through their co-op membership and patrons.

Social Impact Bonds are similar in some ways because they are issued by community focused non-profits and charities. They too, create impact investment opportunities for individuals who believe in the mission of the issuing organization. The main difference is that the issuing organization has established an agreement with the government, where the government will pay for performance by the non-profit or charity. The payment from the government is tied to clear social or environmental outcomes to which the issuing organization has committed. These are the funds that are used to repay investors. So rather than investing in the business model of a social enterprise (as is the case for Community Bonds), investors in SIBs are investing in the organization’s ability to realize detailed social or environmental outcomes.

For example, a community service organization that houses and provides employment training to homeless youth could establish a pay-for-performance contract with the government where they commit to housing and employing 80 youth. This organization could then issue debt in the form of an SIB to their community of supporters. Their investors will be repaid at the end of the program, assuming the organization has achieved the outcome to which they committed with the government.

According to the Ministry of Economic Development, Job Creation and Trade, “SIBs are not bonds, per se, since repayment and return on investment are contingent upon the achievement of desired social outcomes; if the objectives are not achieved, investors receive neither a return nor repayment of principal. SIBs derive their name from the fact that their investors are typically those who are interested in not just the financial return on their investment, but also in its social impact”.

Where do these tools sit on the Investment Continuum?

What are the main characteristics of Community Bonds vs. SIBs?

How do the investor groups differ?

As SIBs aim to solve big social challenges on behalf of the government, these programs often require larger capital injections than a project that may successfully issue Community Bonds. Thus, the investors targeted for SIBs are often high net worth, accredited investor. On the other hand, Community Bonds enable people of average means to transform from occasional donors or volunteers into citizen investors.

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