Innovation Works launches its second community bond
INNOVATION WORKS, A co-working space for social innovators and changemakers, has announced the launch of its second community bond.
In 2015, Innovation Works was the first organization to bring the community bond investment model to London, raising $1 million in capital funding to help open its space through the support of local investors in just three weeks.
With the launch of its second bond, Innovation Works is seeking $1 million in new and renewed investments to help the organization continue to deliver on its vision to bring innovators across the sectors of nonprofit, business and government together and create transformational change in our community. The bond is offered by Pillar Nonprofit Network, the backbone organization for Innovation Works.
Prior to the public launch, Innovation Works had already reached 33 per cent of its $1-million goal.
A community bond is an innovative impact investing tool allowing nonprofits or cooperatives to generate social and financial returns through support from community investors. It’s an interest-bearing loan that enables supporters to align their investments with their values and enjoy competitive returns.
With a minimum investment of $1,000 for a five-year term, the Innovation Works Community Bond provides investors with three percent interest each year and no fees.
Innovation Works has occupied 201 King Street, a four-storey,32,000-square-foot building since June 2016. The community bond is backed by its assets. As of 2017 the appraised value of the building is $5,300,000. As of mid-year 2020, our equity in the building was $2.2 million.
“The Innovation Works Community Bond is the first investment in my portfolio that I can drive by and say, ‘I am a part of the impact happening there,’” says investor, Terry Zavitz, explaining the appeal of the investment opportunity.
As concern grows both locally and worldwide for social and environmental issues amplified by Covid-19, Pillar Nonprofit Network’s director of social innovation, André Vashist, says impact investing is providing a way to make a difference, allowing investors to put their dollars directly towards causes they believe in and build a more equitable economy in the process.
“The Innovation Works Community Bond offers socially conscious investors an opportunity to see the tangible effects of their investment in their community,” says Vashist. “An investment in Innovation Works is an investment in the community impact initiatives that will continue in our space for years to come.”
According to a 2018 report on Canadian Impact Investment Trends from the Responsible Investment Association, the amount of impact assets under management in Canada was $14.75 billion in 2018, up from $8.15 billion two years before – a rise of 81 per cent over two years. On a broader scale, the Global Impact Investing Network estimates there is currently (USD) $715 billion in the impact investing market worldwide.
Those interested in learning more or investing in the Innovation Works Community Bond can find additional information at www.innovationworkslondon.ca/communitybond.