Blended finance

You are not limited to just one form of fundraising and investment – in fact we would encourage you to mix a number of types of funding to reach your fundraising targets.

It is better to spread your risk by mixing loan with grant funding for example, or community shares with donations. By doing this, you then take on less debt. Grant funders are keen to see that you raise investment from your own community and certain funders will specifically match community share equity with grant funding.

For example, if you were raising finance to purchase for your local pub, you might consider:

  • Community Shares: to demonstrate you have community backing and give customers a stake in the success of the business
  • Donation-based crowdfunding: to equip a community room for example, which could be charitable funding benefitting from gift aid
  • A bank mortgage  – banks are more likely to lend where they are assured that organisations are bearing some of the risk and can demonstrate community interest for the service or product.

Both FC United of Manchester and the Ivy House Pub used a combination of grants, donation-based crowdfunding and Community Shares to purchase their community assets.

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Types of organisational structure

There are three types of organisation structure for groups: Small groups Constituted groups Incorporated organisations....

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