An innovative funding model for community groups could grow to become more mainstream through better co-ordination and awareness, said a new report out Thursday.
“They are powerful tools,” said Tapestry knowledge lead Suzanne Faiza, who was one of the lead authors of the report. As it stands, groups generally raise money from those already involved or close to projects, as established investing avenues are tricky. There are restrictions around what financial advisors can recommend, while banks have a lack of awareness, don’t stand to get commissions, and the bonds compete with bank products, the report notes.
Community bonds often offer lower returns than conventional options, with the promise that a social benefit is part of the return. To make the model more enticing, government tax incentives could help, possibly by following a model already in use in Nova Scotia to help attract investment in local businesses.
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