Community bonds

Community bonds put the power in the hands of the issuer to define the terms of the bond (price, interest rate, maturity, etc.) that work for their project, their finances, and their community of investors. They increase the predictability and efficiency of financing your project.

While donations and government funding may come in stages and be tied to specific expenses, community bonds provide access to a lump sum of capital that can be deployed immediately, and can help to bridge other financing sources.

Securities laws in every Canadian province and territory recognize the value of community bonds. They provide a prospectus exemption that allows qualified issuers to deal directly with investors wishing to purchase community bonds, without any dollar limits or income or asset tests for the investors.

Community bonds are creating a new way for investors to make a return while also doing good. While the majority of bonds are generally held by everyday people, they have also become popular among qualified philanthropic foundations, who have earmarked funds for impact investing, and local businesses looking to make a social impact.

Demand among individual investors for ethical investments is high, too. According to 2025 research by the Responsible Investment Association, 76% of Canadians want their advisor or financial institution to be required to ask about investments aligned with their values. Of Tapestry-surveyed community bondholders, 93% said they would ‘definitely’ or ‘probably’ invest in community bonds again.

Community bonds create an opportunity for deep and meaningful community engagement. When a community member stands to financially benefit from a project, they suddenly become a cheerleader and ambassador. Investors get a double benefit—the financial return and a stake in shaping their own community.

Community bonds are typically priced to allow maximum participation. We have seen bonds priced as low as $250, as well as caps placed on investment to ensure widespread involvement. An average community bond campaign engages 90 investors for every $1M raised.

Community bonds are a scalable funding solution. On average, more than half of a campaign’s investors choose to reinvest in a future project rather than redeem their bond. This means that once you’ve completed one campaign, you’ll have a pool of highly engaged potential investors to go to for financing again in the future.

Many issuers see community bonds as a long-term pillar of their organizational financing strategy.

Community bonds build local economies. They allow capital to flow back into the hands of everyday citizens and residents.

Why not allow your supporters to benefit financially rather than a bank? Community bonds allow you to align your project’s financing with your organization’s values.

Community bond investments backed by an asset can increase investor confidence, and enhance the success of the campaign. These assets can range from a building to equipment to infrastructure like renewable energy installations.