Community Funding

We have developed a novel approach to funding community programmes which can help clubs, charities and other membership or community based organisations. Our innovative fundraising concept involves a form of Community Bond as the basis for a share scheme that can be ring-fenced and used as an investment vehicle to drive community projects.

There are three different Community Funding models that we have developed:

Local Community Bond

Our Local Community Bond an investment scheme with social aims that enables organisations to receive an annual income on their investment.

Between £10,000 and £500,000 are invested with DotComUnity Credit Union on a 10 year term with annual rates of interest ranging from 2-5% on a rising basis.

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Subordinated Loan

Our Subordinated loan is a form of Community Bond in that it is a 10 year investment into the credit union to be used to underwrite a funding scheme for a particular community purpose.

For example, if a housing association wanted to support its tenants through the credit union providing a loan for their rent deposit, it could provide a subordinated loan as security to the credit union. If the loan was fully repaid, the subordinated loan would be repaid and available to relend. However if the loan to the tenant went into default, the credit union could repay the debt by a reduction from the subordinated loan.

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Fundraising Scheme

We can help set up a scheme that enables individuals to purchase a share in a community venture to enable it to achieve a particular funding target.

There are 2 options for the investor loans:

Capital and interest loan: a straight forward loan repayable over a set period at a fixed rate of interest. We did this for a football supporters club to help enable supporters buy a stake in their club.

This 'interest charged' method was attractive as the supporters were buying a share in their club, but it may not be so attractive to “investors” that are looking for a return, as obviously the return rate is reduced by the interest cost.

Interest Free loan: this is more attractive to an investor and in theory therefore will allow organisations to raise more funds. However the credit union will need to have its loan interest covered to offer this facility.

If an organisation was to provide a subordinated loan to the credit union, the credit union would use the subordinated loan fund to cover the interest due on the investor’s loans each month. Therefore, over the period of the agreed loans the subordinated fund would reduce and ultimately be extinguished.

The advantage to the organisation is the leverage element of covering the interest.

For example, if the organisation was looking to raise £150,000, the interest cost of £150,000 over 3 years would be approximately £40,000. With a £40k subordinated loan, the credit union could lend £150k, a leverage of 3.75x, subject to the organisation sufficient investors for the project.

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N.B. all loans would be subject to the T&Cs of the credit union.


WP has supported projects with major sports clubs and chairities using this model and can draw on this experience to assist clubs, charities and similar organisations with the process and associated documentation. You’ll be able to build on past good practice for a stronger future.

WP could save you time and money and help you reach your funding targets sooner. For more details on this scheme, call us on 01329 822571 or email at