Community bonds, also known as social impact bonds or community investment bonds, are financial instruments issued by community organizations, municipalities, or nonprofits to raise funds for specific projects that benefit the community. These bonds typically offer investors a financial return while also generating positive social or environmental outcomes.
Benefits
Benefits of community bonds include community development and further, community economic development by inviting local residents and organizations to invest directly in projects that address local needs, such as affordable housing, renewable energy initiatives, or community infrastructure. The social impact of community bonds allow individuals to support projects that have a positive impact on society, such as improving access to adequate and suitable housing, healthcare, education, environmental conservation initiatives, or employment opportunities.
This long-term sustainable approach helps finance projects that contribute to the long-term sustainability and resilience of communities and economic development projects. The financial returns, although lower than typical, provides ethical investments into social good organizations and projects focusing on the social impact and legacy of community building.
Event at Humber College
On Tuesday March 5, 2024, we had the opportunity to host an event on Community Bonds – these are a social finance tool that can unlock the funding you need for your next project and grow your organization. They transform your social capital into financial capital by allowing ordinary individuals in your community to invest directly into your impactful projects.
With experts from Humber College, Tapestry Community Capital, Indwell, Places for People and Redwood Park Communities, who shared the innovative financing tools that are reshaping the financial landscape, offering a powerful alternative with a community-centric approach. From these organizations we have gained valuable insights into the practical applications of community bonds and why they are a game-changer in today’s challenging financial environment.
Tapestry works with organizations across Canada to successfully raise and administer community bonds, guiding you every step of the way to achieve your investment goals. https://tapestrycapital.ca/ and check out their community bond case studies here https://tapestrycapital.ca/community-bond-resources/
Indwell
Indwell, celebrating their 50th anniversary, is a Christian charity that creates affordable housing communities that support people seeking health, wellness and belonging. Indwell is launching four new projects in Hamilton in 2024. Since inception, have housed over 1,200 people. They need investors like you to close the financing gap between purchasing the property and beginning construction. Indwell is launching a bond in March 2024 and plan to actively raise capital for the community bond for 12 months or sooner, if the $5M raise target has been accomplished. More info: https://indwell.ca/hope-and-homes-hamilton-community-bonds
Places for People
P4P exists to transform lives by creating homes and supporting tenants. They create and manage quality affordable rental housing in Haliburton County, fostering an environment in which our tenants can thrive. In the summer of 2023, the not-for-profit organization Places for People (P4P) launched a community bond program to raise $850,000 to refinance current projects towards a goal of increasing their affordable housing supply from 12 to 28 units over the next five years. P4Pโs affordable housing units are located across Haliburton County. Since being founded in 2007, P4P has housed 24 families (37 adults and 54 children). Their goal is to grow their asset base from the current market value of $2.5M to an estimated current market value of $6.75M. There are investment minimums as low as $1000 and interest rates up to 5 per cent.
Redwood Park Communities
Redwood Park Communities creates safe, affordable, hopeful housing where people thrive in community. We are raising $10M through Redwood Community Housing Bonds to finance our next affordable housing project in Barrie, Ontario. This $56M project will create 96 residential units and ground floor commercial space. A Montessori school is planned, along with other services that foster natural community-building opportunities. https://redwoodparkcommunities.com/bonds/
Good Investing
Good Investing planners arenโt brokers, advisors, or money managers. We are investment coaches that offer an independent perspective to help people along their sustainable investment journey. Good Investing was founded by Tim Nash. Good Investingโs change theory is based on the idea of a tipping point. If we can help a million Canadians realize that sustainable investing is both profitable and impactful. https://www.goodinvesting.com/
