If you’re a community-led housing group, you can use these tools to:
- Raise small sums from your local community and supporters to get started, or expand your project. Broadhempston raised £4k for an off-grid water system for 6 local families.
- Raise investment for your housing scheme, for example to pay for some early works or give some security for your bank loan. RUSS raised £53k to self-build a community space as the first stage in their 33 home project.
- Get community investment into your business plan, especially if you want to do more than one scheme or that have other strings to your bow. Leeds Community Homes raised £360k to help create 1,000 affordable homes in the city.
There are two types of crowdfunder:
Rewards-based donations, where people donate money to your project in return for rewards. These can vary from a simple "thank you" note to celebratory dinners, t-shirts and more. They're a good way to encourage people to donate to your project, and can help you find members and potential future investors. You can only access the pledged funds if you hit your target, reassuring funders that their money won't be spent on a project that lacks the money to go ahead.
Community share issues, a form of non-transferable, withdrawable share capital that can be issued by cooperative societies and community benefit societies to raise the funds. In keeping with the Community Land Trust ethos, community share issues are conducted on the principle that each shareholder, no matter how great their share, has just one vote in decision-making forums.
Using Crowdfunder you can get:
- Extra funding, finding donors and investors to top up anything you raise from the community.
- Up to £6k match funding from Power to Change to get your group investment-ready, and up to £100k matched investment from Big Society Capital into your community share issue.
- Support from an expert coach to help you set up and run a successful rewards-based donations or community share campaign.
To do a community share issue you need to check your Model Rules – the new 2017 National CLT Network Model Rules will provide for this.
Other platforms are available, but by using Crowdfunder you can also help fund the National CLT Network.
For every £1 you raise, Crowdfunder will donate a portion from their fee to the National CLT Network to help us build the movement – giving you even better membership services, lobbying government on your behalf and more.
To make sure we get this donation, please either:
- Start your Crowdfunder by following this link, or
- Let us know you're setting one up, so we can notify Crowdfunder you've followed our referral.
If you're considering a community share issue, the Community Shares Unit provides lots more useful guidance.