Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
Crowdfunding your Heritage Project
Michael Norton
Chairman & Co-Founder,
Fundit.Buzz
Birmingham, 13th October 2014
Heritage Trust Network
My own starting point
Investm
en
tD
on
atio
n
The Alternative Finance Market
Nesta Report: Understanding Alternative Finance, Nov 2014
Types of finance for charity
• Donation
one-off or regular with Gift Aid
crowdfunding
• Membership
at different levels with Gift Aid
• Legacies
but your supporter has to die!
and memorials
• Equity e.g. for CIC limited by Share or Company
Limited by Shares with adjusted articles (e.g.
Social Enterprise Mark approved)
• Withdrawal Shares for Cooperatives for the
Benefit of Society (BenComs registered with FCA)
• Loans, which can be
– Secured or Unsecured
– “Bullet”: Principal due at end of term, interest paid during term
– “Amortized”: Principal and interest repaid over term
• Revenue Sharing, quasi-equity
Types of finance for social enterprise
It is very important to understand that crowdfunding is a
regulated activity with these exceptions:
- Donations, including donations with rewards
- Community Shares offered by a registered BenCom
- A 0% loan to a registered Charity
- Revenue Participation, which is not considered either a loan or
equity and so is not covered by the FCA
There are two key regulatory frameworks:
- “Loans-based crowdfunding”
- “Investment-based crowdfunding”
In either case you must work with a FCA-regulated
platform.
Regulations
• Equity
– Seedrs, Crowdcube, Crowdbnk
• Community Shares
– Ethex, Microgenius, Trillion Fund (renewable energy)
• Loans
– Unsecured on commercial terms: Funding Circle, Funding Knight
– Unsecured with a social investment focus: Fundit.Buzz
• Revenue Sharing
– Fundit.Buzz
• Donations
– Fundit.Buzz, Space Hive, Crowdfunder and many more
Platforms (this list is not exhaustive. For
more examples see www.ukcfa.org.uk)
Crowdfunding Basics
1. A set Target Amount to achieve a specific
outcome.
Crowdfunding Basics
2. You raise the money within a specified Time
Frame
Crowdfunding Basics
3. Rewards based: you provide Benefits in Return
Crowdfunding Basics
4. Pre-set Levels of Giving
Crowdfunding Basics
5. All or Nothing: You only get money if
you reach your target or tipping point
• Donations
Gift Aid
• Equity
SEIS. EIS. SITR (if CICs that are limited by shares)
• Loans
SITR for Registered Charities, CICs, BenComs
• Loans-based ISAs
(planned introduction in 2016)
• Possibility of offsetting of losses
Against CGT
Tax Reliefs for investors
Rewards-based
What can you offer in return?
• Things that people want
• Experiences and opportunities
• Customers in advance
• Revenue share
• Interest/cashback
Low cost to deliver
Benefits that seek to engage
Gateshead Citizens Advice: what could it offer?
hisBe, Brighton: what could it offer?
Technology Will Save Us: Mover Kit
The Converging World
• Helps you organise and engage your existing
supporters
• The crowd as advocates and cheerleaders
• The wisdom of the crowd: comments,
feedback and ideas..
Value of Crowdfunding beyond cash
• It refines your message: pitching and marketing
• It gives your project credibility
• It demonstrates your energy and commitment
Value of Crowdfunding beyond cash
Nobody likes asking
Some issues
It takes TIME and
EFFORT
Some issues
GRANTS are easier
than FUND RAISING
Some issues
Michael Norton [email protected]