FAQ
We are updating and improving our site. Please be patient with us as we make a number of changes. We will soon have more information including how you can become a collective grant maker.
What is the Community Fund?
The Community Fund is a small society lottery based in Islington, London and as such is registered with Islington Council, licensed under the Gambling Act 2005, and regulated by the Gambling Commission. As a ‘small society lottery’ it must, among other things, be run by a non-commercial organisation registered with the local authority and at least 20% of the proceeds must go to good causes i.e. the purposes for which the organisation has been formed. Such lotteries are a succesful fundraising tool for organisations such as Age Concern; Diabetes UK; hospice lotteries, such as those affiliated to the Hospice Lotteries Association; the Isle of Wight Lottery and the Pembrokeshire Lottery.
What is the good cause that the Community Fund supports?
The proceeds of the Community Fund are dedicated to combatting financial exclusion among individuals, businesses and community groups by providing affordable, accessible and fair loans and community grants and other financial services, such as advice.
Who operates the Community Fund?
The Community Fund is operated by Community Money CIC, which is a company incorporated in England and Wales under Company Registration Number 6258207 and a Community Interest Company regulated by the CIC Regulator.
What can you tell me about Community Money?
Community Money is a London based MFI (microfinance institution) which is the first in the UK to be registered as a Community Interest Company (CIC). Community Money invests in financially excluded individuals, businesses and community groups by providing affordable, accessible and fair loans and community grants and other financial services, such as advice.
- Community Money offers
- Money & Debt Advice
- Affordable Loans & Community Grants
- Community Based Advisers Programme
- Financial Inclusion Training & Consultancy
Community Money has received private investment and grant funding from UnLtd, the Foundation for Social Entrepreneurs. It is an associate member of the CDFA, the trade association for Community Development Finance Institutions (CDFIs), which are independent financial institutions which lend and invest in deprived areas and underserved markets that cannot access mainstream finance.
What is a CIC (Community Interest Company)?
A CIC is a company which operates for the benefit of the community. A CIC is a new type of company designed for social enterprises that want to use their profits and assets for the public good. Community Interest Companies (CICS) are limited companies with special additional features created to conduct business or other activity for community benefit, and not purely for private advantage. This is achieved by a “community interest test” and “asset lock”, which ensure that the CIC is established for community purposes and the assets and profits are dedicated to these purposes. Registration of a company as a CIC has to be approved by the Regulator who also has a continuing monitoring and enforcement role. For more information, visit the CIC regulator’s website by clicking here.
What is financial exclusion and why is it a problem?
According to government estimates, one in 12 people don’t have access to fair and affordable loans and if they do can pay up to 150 times more than the average interest rate, in some cases as much as 1500% APR. The people who can least afford it pay the most for financial services.
But financial exclusion does not only effect individuals. Many new and existing small businesses, vital to the local economy, are turned down for small loans as they cannot offer required collateral or personal guarantees; and community organisations often struggle to survive because they cannot access small grants.
Why should I join the Community Fund?
You have a chance of winning weekly cash prizes and as the lottery grows you will help us fund affordable loans and community grants to financially excluded people, businesses and community groups. At least 40% of proceeds will be paid out in prize money.
How much can I win and what are the odds?
This depends on the number of people entered for the weekly draw. The more people entered, the higher the weekly cash prize. If 20 people are entered than your odds are 1 in 20; if 500 are entered your odds are 1 in 500. In the early stages the odds are extremely favorable but the prize money relatively small. As the Community Lottery grows, the prize money increases and the odds decrease. We expect to grow to 1500 weekly entries by the end of 2008.
How will the proceeds from the Community Fund be distibuted?
The Community Fund will make 40% of the proceeds available to provide affordable, fair and accessible loans and grants and other financial services, such as advice; 40% will go towards the weekly prize money; and 20% will go towards operating costs.
As mentioned before Community Fund, as a ‘small society lottery’ must ensure that at least 20% of proceeds go to good causes i.e. the purposes for which the organisation has been formed. We expect to provide at least 40% of lottery income to be made available to combat financial exlusion. This is twice the minimum legal requirement and compares favorably to the 28% that the National Lottery makes available to good causes.
Interested in applying for a loan or a grant?
Community Money expects to start lending to both individuals and businesses and to make community grants available in the second half of 2008. Full loan and grant guidelines and criteria, including how to apply, how much can be applied for etc., will be available on this website shortly. We will update the website with further information as soon as it becomes available. If you would like to be kept informed when we start lending or making grants, please contact us.
How to contact us?
Our contact details are Community Money CIC, The Hub, 5 Torrens Street, London EC1V 1NQ; Tel: 0845 602 1322; Email: .
Community Money Offers
- Money & Debt Advice
- Affordable Loans & Community Grants
- Community Based Advisers Programme
- Financial Inclusion Training & Consultancy
Community Money has received private investment and grant funding from UnLtd, the Foundation for Social Entrepreneurs. It is an associate member of the CDFA, the trade association for Community Development Finance Institutions (CDFIs), which are independent financial institutions which lend an invest in deprived areas and underserved markets that cannot access mainstream finance.
