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News

Centre for Social Innovation Closes Raise of $1.9M!

By | Client Stories, News

A huge congratulations go out to the Centre for Social Innovation (CSI) for reaching their 2020 Community Bond goal of $1.9M in only 41 days! 

CSI has a successful history of using community bonds to support their work:

  • In 2010, CSI raised $2 million over the course of four months to own their first CSI Annex location at 720 Bathurst St.,
  • In 2014 they raised $4.3 million to purchase and renovate CSI Spadina at 192 Spadina Ave.

“I think the record success of this campaign to build the next economy, during this unprecedented time of hardship and activism, speaks to the moment: great challenges demand that we rise to meet them. We’re entering a new era and the potential we have today to reshape ourselves hasn’t existed since the post-war era. Our community of impact investors are some of the wisest most committed people in Canada. I think they saw the opportunity, and CSI’s track record of doing the work, and proving that big ideas are possible, and they wanted to be part of the solution.

We couldn’t have done this without the essential services provided by our long-term partners at Tapestry. From the sage advice, technology, process recommendations, and thorough knowledge of the regulatory dos and don’ts, to the careful, friendly, long-term investor management, we simply could not be in the Community Bond business without them.”

Kyle Shantz, Director of Growth, CSI

With the help of Tapestry – and nearly 120 individual community investors like yourself – CSI was able to raise an impressive $1.9 M in under two months for their most recent bond project.

The CB 2020 bond offering was an invitation to their community of members and supporters to invest in the people, places, and programs that put people and the planet first. 

The funds from this raise will support a variety of programs that are in line with the UN’s Sustainable Development Goals – Quality Education, Gender Equality, Decent Work, Reduced Inequality, Sustainable Communities, and Climate Action. 

We are proud to be a part of this great success and look forward to watching the future unfold for the Centre for Social Innovation! Click here to learn more about this project!

If you are interested in learning more about bringing your dream project to life through community bonds, find out more here or e-mail Ryan Collins-Swartz at ryan@tapestrycapital.ca.

What is the Investment Readiness Program?

By | News, Policy and Advocacy

At Tapestry, we speak with many not for profit organizations on a weekly basis. Over the last few months, the Investment Readiness Program (IRP) has been a part of that conversation. When we bring up IRP, we tend to get a variety of responses ranging from excitement to confusion. What is the Investment Readiness Program? How can it benefit nonprofit organizations? What does investment readiness even mean?

The idea of private capital being invested in the nonprofit sector is a new sort of conversation in Canada. In past blog posts, we’ve discussed the investment continuum and where community bonds sit in reference to traditional philanthropic tools. IRP is another piece in this financing conversation.

In this blog post, we’ll seek to:

  • Provide clarity about the program
  • Give some insight into the idea of investment readiness
  • Point you in the right direction for learning more about the program

Social Finance Fund

On November 22, 2018, the federal government announced the establishment of a $755 million Social Finance Fund. The Community Foundations of Canada CEO, Andrew Chunilall suggests that the goal of the fund is to “attract increased investment to help vulnerable people and to solve pressing challenges like climate change, housing affordability, technological disruption of jobs, and other national and local priorities.”

Full details about the fund are still forthcoming, however, it is expected that the $755 million will be distributed in the form of a matching investment over the next 10 years, starting in 2021. In other words, like the funds from private investors, the social finance fund be a repayable investment into social purpose organizations.

In recognition of the fact that private investments and social finance are new concepts for many social purpose organizations, there has been $50 million earmarked to help get organizations ready for the planned release of the Social Finance Fund. These funds are being distributed as the Investment Readiness Program.

Investment Readiness Program

The Investment Readiness Program was launched in July 2019. The funds are being distributed in the form of grants through readiness support partners. These partners include:

Starting in 2020, these readiness support partners will put a call out to social purpose organizations (both for profit and not for profit), that are interested in becoming investment ready. In fact, the Canadian Women’s Foundation has already put out its first call out for applicants.

In practice, investment readiness refers an organizations ability to successfully participate in the social finance market. This means generating revenue through a new social enterprise, or scaling existing social enterprise activities. The capital earned through investment will allow organizations to increase their social impact, and being “investment ready” means the organizations will have the capacity to repay that investment.

There are different financial vehicles that allow organizations to accept financing, including community bonds. What is common amongst these social finance vehicles, is the expectation of a financial return in addition to a social return.

How can Nonprofit Organizations benefit from the program?

For not for profit organizations that have only ever relied on grants and fundraising, the Investment Readiness Program presents an amazing opportunity to think differently about financing. In leveraging this opportunity to establish a Social Enterprise, or grow existing revenue generating activities, organizations can both position themselves for social investment, and create long-term sustainability that could come in the form of:

  • Investing in social purpose real estate
  • Addressing food insecurity and clean energy generation
  • Providing equitable jobs and training opportunities
Argonaut Rowing Club President - Investment Readiness Post

The Argonaut Rowing Club leveraged community bonds to raise $1.2 Million for their club revitalization project.

Organizations that we work with, like the Argonaut Rowing Club (ARC), are a great example of how private capital can enable a greater social impact. By leveraging community bonds, ARC was able to increase their clubs membership capacity, make the club accessible, and make essential improvements to the revenue generating events space. To learn more about how the Argonaut Rowing Club leveraged social finance, click here.

 

What’s Next?

We will be working with Innoweave to host an Investment Readiness and Ideation session on Thursday, December 18 at 1:30pm. The session will be hosted by Tapestry at the Foundation House (Foundation House Board Room, #300-2 St Clair Ave East, Toronto, ON) and facilitated by Wayne Miranda the Social Finance Investment Readiness Lead.

If you’re interested in participating, signup through the link below:

In addition, before the end of the year, the Community Foundations of Canada will be announcing more information on the Investment Readiness Program. They will be one of the best resources to stay up to date on program developments, and gain access to program funds through community foundations. And, as we learn about funds being released through the different Investment Readiness Partners, we’ll be sure to let you know through the Tapestry Community Capital newsletter, on our Twitter account, or through LinkedIn.

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, the 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 small 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

 

 

White Pencil

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:
View Newsletter Button
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.

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.

Balloons against a blue sky

Tapestry Celebrates Announcement of Social Finance Fund

By | News

Today is a day to celebrate! In the Fall Economic Statement released this morning, the Federal Government announced the creation of a $755 million Social Finance Fund. This is a strong signal towards the growing movement of impact investment in Canada and a bold step towards advancing social innovation.

“We are very optimistic about the announcement today,” says Tapestry’s Social Impact Manager, Ryan Collins-Swartz, “it’s a signal from the top that the social economy is moving towards becoming the common economy.”

In June 2017, the Government created a Social Innovation and Social Finance Strategy Co-Creation Steering Group that sought feedback from hundreds of non-profit and charitable stakeholders to create a nationwide social innovation and social finance strategy. The Steering Group published its final report in August 2018: Inclusive innovation: New Ideas and New Partnerships for Stronger Communities.

One of the report’s central recommendations was to create a Social Finance Fund to accelerate the social finance market in Canada and help close the financing gap faced by organizations that are contributing to social and environmental change in their communities.

The Fund, which will make $755 million available over the next ten years, will support charities, non-profits and other social purpose organizations to access new financing and connect them with private investors that want to make impact investments. The Government has also proposed to invest $50 million over two years to create an Investment Readiness Steam, for these organizations to improve their ability to successfully attract investment.

Tapestry has also recognized the need to develop the investment readiness of non-profits, charities and co-ops. With the launch of our Bond Camp we will be supporting Ontario-based organizations to successfully raise community investment in 2019. We have seen the movement of private capital into meaningful, place-based investments and feel confident that this fund will feed the growing local and social investment ecosystem.

“This is a symbolic gesture from the Government, recognizing the reality that the non-profit sector is a very important part of our economy,” says Collins-Swartz. “This fund will make much needed resources available to ensure that social innovators are able to scale, and make Canada a better place to live, work and play.”

The Government has reported that this Social Finance Fund could generate up to $2 billion in economic activity, and help create and maintain as many as 100,000 jobs over the next decade.

In honour of this great news, we are giving the gift of one free investment readiness workshop. Do you know of a project that could benefit from community investment? Email us at info@tapestrycapital.ca

A woman lifting a weight rack on her back

Tapestry Launches Bond Camp

By | News

Across Ontario, communities are coming together to reclaim ownership of community assets

These community assets are becoming spaces for change. We are witnessing amazing transformations – from old furniture stores into social purpose co-workings spaces, historic abbeys into affordable housing hubs, and empty hockey rink roofs into places for clean solar power generation.

Non-profits and charities have bold ideas to address systemic issues. Bringing these iconic project to life requires innovative business models, creative partnerships and financing.

Community bonds have proven to be part of the solution,  but the getting to the point of issuing the bond is a journey. We’re here to help you on the road to raise.

Over the past year, we have been travelling across Ontario meeting with groups who have important projects to implement. We have seen and heard that additional resources and coaching is needed, not only to raise a community bond, but also to help move the project forward. Everyone needs a little bit of help. For some groups it is about business planning and financial modelling, for others they need help with securing a property or architectural renderings.

That’s why we are launching Bond Camp

Bond Camp is a 5-month program to give you the funding and coaching support needed to help bring your vision to life with community bonds.

Successful applicants will receive up to $10,000 in grant funding and coaching to increase your project’s investment readiness and prepare you on the road to raising a community bond.

To find out if you are eligible and submit an application, click here.

A large group at affordable housing presentation

Innovative Financing Solutions for Affordable Housing

By | News

More than 40 affordable housing stakeholders gathered at the Workers Arts & Heritage Centre in Hamilton today to explore new and innovative financing models for affordable housing. The key message from the panelists was a firm belief that that community investment has a central role to play in creating more affordable housing. Lack of funding is a long-standing problem that has escalated to become a front-page item in every community and an issue which will clearly require a collaborative solution. As with many mid-sized cities across Ontario, lack of affordable housing is a critical area of concern in Hamilton., who hosted the event.

The event attracted a diverse cross-section of stakeholders including non-profit and co-operative housing providers, poverty and housing activists, churches, affordable housing consultants, city councillors, city planners, architects and developers. The panelists, including Tapestry Community Capital, New Market Funds, Tim Welch Consulting, the Mount Community Centre and Options for Homes, presented a range of alternatives to traditional bank financing, which at times can be challenging for non-profit groups and low-income households to secure.

Tapestry believes that a social finance tool called a community bond could play an integral role in mobilizing private capital for affordable housing. “The signal is strong and clear that Canadians want to invest locally and with purpose”, says Tapestry’s Executive Director, David Cork, “what is needed are more investable projects”.

Non-profit and co-operative organizations are unique in that they can take advantage of exemptions of the Ontario Securities Commission that allow them to issue securities to their community of supporters.  “Quite simply, a community bond is a loan from a community member. How it differs from a traditional bond is that it always encompasses a social or environmental return in additional to a financial return” says Cork.

One of the panelists who shared a real-life success story was Andi van Koeverden, the Director of The Mount Community Centre in Peterborough. In 2011, a small group of dedicated citizens that were part of the Peterborough Poverty Reduction Action Network embarked on momentous task of transforming a historic 132,000 sq ft building in the heart of Peterborough to respond to growing needs for affordable housing in the area.

With no upfront capital to close on the purchase of the building, the group turned to their community for private capital. Their ask was simple – “just imagine”. The response was overwhelming, with 60 community members stepping in to collectively invest $2 million to bring the project to life. This community financing was complimented with a $1 million contribution from the City of Peterborough and a low interest $1.7 million loan from the County of Peterborough. To date, 43 affordable rental units have been completed, with another 38 under construction.

The Mount Community Centre

The Mount Community Centre is a story of determination, courage and commitment, and demonstrates the power of community finance. Tapestry hopes more groups will lead the way, creating opportunities for supporters to invest in projects that will directly benefit their communities.

“There are many sectors in which community bonds can be applied”, says Cork, “but the case for affordable housing is particularly strong. Lack of funding is a long-standing problem that has escalated to become a front-page item in every community and an issue which will clearly require a collaborative solution.”

If you’re interested in learning from the success of the Mount Community Centre, we’ve developed a case study to detail how community bonds played a part in bringing the project to life!  Click below to sign up and download the case study.

Group of people at Tapestry launch party

Tapestry Community Capital Celebrates Official Launch

By | News

On May 2nd, joined by an excited crowd of social innovators, Tapestry officially launched it’s new suite of services to help non-profits and co-ops across Canada raise capital through community investment.

Tapestry Community Capital is the latest social venture of the TREC Co-operative, a non-profit organization founded in 1998 to advance the community power sector of Ontario. For years, the TREC Co-operative has assisted renewable energy co-ops across Ontario to raise community dollars for community owned sustainable energy projects. With the support of TREC, renewable energy co-ops such as SolarShare, WindShare and ZooShare, have raised close to $40 million in community investment.

With Tapestry, we are expanding on TREC’s experience in renewable energy and opening up our knowledge of social finance tools to non-profits and co-ops across all sectors, including affordable & inclusive housing, arts & culture, health care, local & sustainable food, co-working and community service agencies.

Driven by a steadfast belief in the power of community, Tapestry envisions a world where community investment is the new normal. We see a whole new wave of organizations and social enterprises committed to not only leveraging their community to realize social good, but to keeping returns within the community, creating and redistributing wealth via local investment opportunities.

Community bonds can and will play a vital role in helping social enterprises to scale their operations, take ownership of assets, and meaningfully engage their network of supporters in that growth. We look forward to helping non-profits and co-ops across Canada build upon their greatest asset: their community.

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