A withdrawable, non-transferrable equity investment into a cooperative or community benefit society. It is a form of equity because the investors get a share of the organisation.

It is ‘withdrawable’ because the investor can take their money out of the organisation if they choose to. However, unlike conventional shares, a holder of community shares can not transfer them to another person and the shareholder has just one vote, regardless of the amount invested and the number of shares held. 

When might I use it?

If you’re a local organisation needing investment to get up and running. For example, you’re a group of local people who want to buy the village pub and need to raise £150,000 to buy the lease and cover initial running costs.                                       

Where can I get it from?

There are various ways to invest in community share offers including through online platforms. The Community Shares Unit and Community Shares Scotland will provide help to organisations looking to set up offers. Power to Change offers a Community Shares Booster programme which offers support and potential match funding to help you meet your target raise. 

Pros

  • Many community shares investors are local people who want a community owned business in their local area because they are potential customers for it

  • Many investors put in small amounts and are happy if the organisation continues to exist rather than expecting a return on their investment

Cons

  • Best suited to organisations that have large numbers of individual paying customers

  • Only available to organisations set up as Co-operatives and Community Benefit Societies

More information