Co-investing in Social Projects via Community Sector Banking
24 April 2012 at 11:31 am
An Australian Community Sector Banking consortium has released a financial product that it says will donate 50 per cent of account profits towards social projects and investors can also elect to donate a proportion of their interest to the fund.
The Bendigo Bank and Community 21 joint venture called Community Sector Banking (a consortium of 20 Not for Profit organisations including Oxfam Australia, Scope and ACOSS) has launched the product called the Social Investment Deposit Account.
The consortium says the new type of account is aimed at community minded people and organisations who want to see their investments being useful and contributing to social change, rather than just locked away.
It says the Social Investment Deposit Account offers a competitive rate and Community Sector Banking then gives a donation stream of 50% of account profits to positive social outcomes and invites investors to boost outcomes by donating some of their profits as well.
“We are committing 50% of profits on the account to projects and organisations working for social change, we invite investors to do likewise and donate some of their return too,’ CEO and Managing Director, Greg Peel said.
“This is a unique product and we would expect to raise significant dollars and produce some great outcomes depending on its take up.”
Customers will be given the option to make a tax deductable donation of 0%, 50% or 100% of the interest earned on their account to support social programs and projects via the social impact fund in the Bendigo Bank’s Community Enterprise Foundation (CEF).
“Community Sector Banking is working closely with their colleagues in the CEF to ensure best practice philanthropy and management of the funds. There is an advisory group set up and the process for applying for a grant/donation stream will be developed to complement the aims of the account,” Peel said.
The consortium says the account contributes to positive social impact, such as:
- expanding social and affordable housing
- sustaining conservation and environmental projects
- helping close the gap on Indigenous education and health
- building respectful and appropriate aged care options
- fostering community development through financial inclusion.
For more information go to communitysectorbanking.com.au
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