Community Bonds
Description
By Jonathan Wade:
"a community bond (or sometimes called a community investment bond) is where a private citizen can purchase the bond directly from a social enterprise, and they may receive a both a financial and a social return on that investment over time. Financial returns are modest, typically ranging from 2-6%. Maureen Stapleton of Investing for Good offers a clear definition: “Community bonds allow people to support a charitable cause while knowing that the money will be returned to them at the end of the investment period.”
Example
"The Canadian leader in this tool is the Centre for Social Innovation (CSI) in Toronto, as they have issued community bonds for sale to investors in order to finance their shared space business. As a result of their expertise, they have created a website to answer many of the questions regarding the use and design of this particular financial instrument in Canada." [1]