Page 1

Welcome to our 2014 Year Book. We hope you will enjoy reading about our innovative Share Offer currently in the market, the reports from office bearers, the activities and achievements throughout the year, a sneak peek in to the brand new world act. and our vision for the future. We hope to build an Australia where the not-forprofit sector works so well together that it is less buffeted by the inevitable winds of change, but making the ruffles themselves.

Executive summary

Contents 3. Who is Community 21? 4. The share offer 5. founding shareholders & Board 7. CHAIR’S REPORT 8. Ed’s report 9. Grow strong & Act. 11. ACTIVITIES + ACHIEVEMENTS 14. Vision for The future 15. And finally…

Community 21 is a social enterprise company owned by not-for-profits and dedicated to better financial capacity and capital streams for Australian not-forprofit organisations. Created in 2001 by 20 not-for-profits coming together and investing in a, then unusual, profit-for-purpose company, Community 21 is one of Australia's most longstanding and social ventures. It was a new idea and a bold move; they were prepared to risk their money to realise their vision to develop a banking service that would help the Australian not-forprofits increase their financial capacity and tailored resources.

In 2002, Community 21 in partnership with Bendigo Bank, established the specialist banking service, Community Sector Banking, which now caters to more than 9,000 Australian notfor-profits. Clearly, the risk the founders took, was worthwhile. In 2014, Community 21 launched an historic share offer, exclusively to Australian not-for-profits. Aiming to raise capital to inject in an expansion of Community Sector Banking and to expand the representativeness of the shareholder base.

Who is community 21?


the Share Offer The Community 21 Limited Share Offer aims to raise up to $4 million for a number of key initiatives including: •  Supporting development and implementation of the act. platform which combines banking and crowdfunding to boost social outcomes. •  Developing impact investing vehicles such as social impact funds, to stimulate greater investment in social impact projects.


Date of Prospectus Offer opened Date to reach Min Subs Final Closing Date

-14 Aug 2014 -14 Aug 2014 -13 Dec 2014 -30 Jun 2015

KEY OFFER TERMS Offer Price per Share - $5.00 Number of Shares on issue immediately prior to the Offer - 400,000 No. of New Shares offered - Up to 800,000 Minimum Subscription amount - $1,800,000 Maximum Subscription amount - $4,000,000 HOW TO APPLY An application for Shares under the Prospectus can only be made by completing the Application Form accompanying the Prospectus.

“An exciting coming of age for an organisation that has over a decade of innovation under its belt” Peter Quarmby

* The above timetable is indicative only. The Company reserves the right to vary the dates set out above subject to the Corporations Act and other applicable laws. In particular, the Company reserves the right to extend the Closing Date or accept late Applications without notifying any recipients of this Prospectus or any Applicants. Investors who wish to submit an Application are encouraged to do so as soon as practicable after the Offer opens.


Our twenty founding shareholders represent the diverse nature of Australia’s not-for-profit sector. From large national welfare organisations to smaller local training and employment bodies their experience and knowledge ensure we are

both ‘of’ the sector and ‘for’ the sector. Their vision for the future has enabled the realisation of Community Sector Banking and now our exciting new development act.

The foundation shareholders


Community 21 is grateful to its dynamic and wholly engaged board of directors. The directors have contributed greatly to the development of this innovative organisation. Visit our website to get further acquainted.

The Board of Directors


David Thompson AM Join us to share the Community 21 vision This year, Community 21 achieved a long-held goal of opening up our ranks to other not-forprofit organisations through the opportunity to invest and join us as a shareholder. Over the 13 years since Community 21’s inception, not-for-profits have got smarter, Community Sector Banking has grown into a real force in sector banking, and ethical and impact investing are becoming mainstream. When our founding shareholders got together to form Community 21, we had a vision to improve the landscape for not-for-profits, but no concrete action plan. In 12 years, in partnership with Bendigo and Adelaide Bank, we have successfully built a banking service from the ground up. We have tailored banking products, reworking them until they fit the unique needs and purposes of our sector and inventing new ones where none existed. And it has paid off. Over 9,000 Australian not-forprofit organisations now bank with Community Sector Banking. And this number is steadily growing‌


This time around, the Community 21 story is easier to tell. We have big plans and substantial runs on the board. The changing and more challenging environment in which we operate means that the not-for-profit sector urgently needs to think about the way we do and finance our business. We need to find new ways to sustain and build our operations and make best use of the financial capital we already have, to improve our engagement with the citizens and communities who we serve. Community 21 is committed to helping not-forprofit organisations achieve these aims. But we can can only succeed together. We need more organisations from the sector to get on board and to invest in the next phase of the development of Community 21 and its involvement in Community Sector Banking. I hope that 2014 is the year your organisation decides to become a shareholder in this venture and that our organisations, our not-for-profit movement and ultimately, our community, reaps the rewards.


Peter Quarmby Time to take bold steps & create the future we want In 2013 - 14 we have sought to set the scene for a paradigm shift in the sector, advocating a move towards greater independence and assuming control of its own financial destiny. This year has been about the capital raising process and expanding the shareholder base of Community 21. In the past few months we have traversed the country from Darwin to Hobart, from Brisbane to Perth and all points in between, to meet with more than 100 organisations and hold 5 Roadshows in major cities, sharing our invitation for the sector to join Community 21 as a shareholder. As some of you are no doubt aware, our share offer aims to raise capital to support Community Sector Banking’s expansion: developing act. a unique and innovative new platform that combines crowdfunding and banking products, as well as new impact investment vehicles.

This is the time to step up and capitalise on the skills, foresight and the passion contained within the sector. We are more than a mere economic sector, we are a movement within Australian society, a movement committed to positive social, cultural, environmental and economic change. Our movement will be strengthened through collaboration, shared innovation and leadership.

We look forward to continuing the journey with new shareholders working together to shape the future of our sector and our movement. I warmly invite you to download our prospectus and consider the investment for your not-forprofit. We’d love to have you on board.

Community 21’s capital raising is about real impact investment. It is an expression of the sector’s willingness to create solutions and look for new ways to meet the demands of the future.



Grow strong & act. In 2014, the pressure for the not-for-profit sector to deliver more with less has played a significant role in terms of its ability to achieve outcomes. Looking forward, the implications of this increased pressure means the management of capital and funding is critical to the success of the sector. With the federal government taking the first step towards abolishing the Australian Charities and Not-for-profits Commission, the need to work closely together to achieve positive outcomes for the sector has never been more important.

Community Sector Banking has shown commitment to the sector by bringing to the market innovative capital raising and funding models that will enable not-for-profits to increase the impact in the community. This year, our focus in creating new pathways for social investment has seen the development and launch of the world-first initiative, act., bringing the worlds of banking and crowd funding together. This platform will revolutionise the way individuals and organisations can invest in their community, social enterprises and the not-for-profit sector.

Supporting not-for-profits who help financially disadvantaged people has been our continued priority in 2014, and we were proud to launch our inaugural Social Investment Grants Program which awarded six Australian not-for-profit organisations with grants totalling $50,000. Our success is dependent on our people and the support and guidance from our shareholders, Community 21 and Bendigo Bank. Our driver to be innovative in our banking approach is our responsibility to the not-for-profit organisations who have invested in us through Community 21. Their investment strengthens our ability to develop innovative solutions for the sector in a way no other banking institution can. I am extremely proud of how far we have come in 2014. Looking to the future, we aim to build on our growth and continue to source new pathways to deliver innovative and sustainable solutions to the sector – creating real solutions and delivering real impact. Greg Peel CEO and Managing Director Community Sector Banking

Community sector banking


Facts & Figures Over the last year Community Sector Banking has grown and remains committed to Australia’s not-for-profit sector. •  Customer numbers are up from 7,000 to 9,000 •  Staffing up from 53 to 63 •  Strong growth in product take up •  Crowdfunding platform act. is taking Community Sector Banking in exciting new directions and providing not-for-profits with new ways of engaging their supporters. Check out

What is act.? act. is a fresh, new way of banking – for good.

How does act. work? It’s simple. As soon as you open a bank account with act. you receive an Impact act. gives Australians the Account. Every time you do opportunity to earn and your banking, you earn donate banking profits to a Impact Dollars. You then whole range of inspiring, allocate these Impact community-focused Dollars to any of the projects, simply by doing projects featured on the something you already do act. website everyday. act. is designed to create a connection between people who want to make a difference and Australian not-for-profits who are focused on delivering positive social change.

You can choose where your donations go, how much, and how often.

How can I get involved? To get started, all you have to do is give our team a call on 1300 ACT TODAY (1300 act. enables individuals to 228 863). Our friendly team align something they do can answer all your every day such as banking questions, and help you with their personal values. open an account or loan, over the phone.



collaboration Bringing Community 21 to the sector Throughout the year Community 21 has been revitalising itself and getting ready for the big Share Offer. The capital raising process has seen us meet with more than 100 organisations throughout the country. Including #JOINC21 Roadshow events in 5 capital cities, where we heard from many not-for-profit leaders about the reality of their experience. On the ground Supporting and attending sector conferences and meetings to share and keep up to date with the issues affecting the sector.

In a highly connected world We’ve boosted our reach to the sector by adding Facebook and Linkedin pages to our established Twitter profile, as well as sending regular newsletters to a growing subscriber base. Community 21 continues to develop relationships with natural allies internationally. This year we’ve deepened our relationship with the UK’s Charity Bank, Social Enterprise UK, INAISE and the Institute for Social Banking.

“As a movement that has collaborated for over a century, Australia’s not-for-profit sector is well practised at working together. Now is the time to come together again and use our collective resources to support the future independence of our organisations and their social impact.” David Thompson AM



innovation First of its kind A share offer lodged with ASIC and exclusive to not-for-profits is, as far as we could find out, the first of its kind in Australia. At time of writing we are approaching minimum subscription, and we are confident of a successful offer. Can you see your organisation as a shareholder? We can! Don’t miss out – Download the prospectus today. Working as a sector brains trust Over the last year Community 21 has been researching the many possibilities that the digital age can bring for not-for-profits and their funding. Crowdsourcing, collaborative consumption and digital engagement are all fertile territory for not-for-profits and likely to be important for a sustainable future.

“Research and liaison with shareholders has been invaluable. We are so excited to open up the company to more shareholders, we’re rubbing our hands at the opportunity to draw on increased sector knowledge to drive better financial resources and services for the sector as a whole” Peter Q Renovated presence With our rebrand in 2013 and upgraded digital presence we’ve had both virtual and physical facelift. This year Community 21 produced 2 videos with the wonderful digital storytellers.

We’ve been proud to facilitate and contribute the sector knowledge component of this to Community Sector Banking’s big leap forward in this space – the act. platform.


leadership An ambassador for social banking Peter Quarmby was delighted to be invited to present at the Institute for Social Banking’s summer school in Lyon. He was asked to present on establishing a social bank and explore the guiding principles that set it apart. There was great interest in the Community Sector Banking and Community 21 story and the unique model we adopted to meet the banking needs of the Australian not-for-profit sector.

Meeting the great disrupter In October, Peter was invited to speak on the same platform as Muhummed Yunus, the founder of the Grameen Bank. Peter was thrilled to meet the guru of social finance and felt that they had a great deal in common a willingness to disrupt the dominant thinking for the good of society. Homage to the founding 20 shareholders Our 13th birthday and the second share offer have led us to consider once again the forward thinking leaders who were the original investors. For some of our shareholders, getting the $20,000 to invest was quite a challenge. Their vision has been vindicated and they have received both dividend and substantial capital growth as well as being an integral part of the success of Community Sector Banking is great endorsement of their faith and foresight.

“2014 has been a tumultuous one for the sector. The tight fiscal environment, uncertainty over the ACNC and controversial federal budget have worked together to make this year a particularly unsettled one. It is this environment that we can really see the leaders in the field; they are the ones out in front, thinking about the future, planning their own destiny and that of the sector – not waiting for one to be handed to them.” Peter Q






︎Community 21 has a greatly enhanced and energized shareholder base, It runs effective working groups as part of its work as a sector think tank. Organisational independence is boosted and reliance on increasingly scarce government funding and resources is reduced, because the sector works together effectively.

Community 21 is engaging with the sector to create responses and services tailored to on the ground experience. ︎ Community 21 pioneers concepts such as; crowdsourcing, social finance ︎for the good of the sector as a whole. Community 21 works to build financial capacity in all dimensions of the sector.

Community21 is the thought leader on financial issues for the sector because it successfully harnesses the brains trust of its shareholder base. It contributes to government and sector policy development. The leaders of the sector have led a paradigm shift towards smarter and more sustainable ways of working. Sector has taken back its financial destiny.

Vision for the Future


And finally… “By any measure the Australian not-for-profit sector is huge, and has a profound impact on all facets of Australia’s society, economy and democracy. The Australian not-for-profit sector responds to our society’s needs delivering and supporting environmental programs, children’s services, youth programs, training and employment provision, social and affordable housing, disability services, health services, emergency services, culture and the arts through to aged-care facilities and so much more. The Australian not-for-profit sector touches the lives of all Australians and without an independent, sustainable, financially secure not for profit sector our nation is diminished. Peter Q

We’re looking for not-for-profit investors We’d love to hear from you. Contact us: E: T: +61 2 4855 8433 W:

“A prospectus containing the offer of shares in Community 21 Limited ACN 097612416 (C21) is available at or by calling 02 42558433. You should consider the prospectus in deciding to acquire shares and whether C21 shares are appropriate for you. If you want to acquire C21 shares, then you will need to complete the application form attached to the prospectus.”

Profile for Community 21

Community 21 Year Book 2014  

Community 21 is a profit-for-purpose company, owned by Australian not-for-profit organisations. It aims to build better financial options fo...

Community 21 Year Book 2014  

Community 21 is a profit-for-purpose company, owned by Australian not-for-profit organisations. It aims to build better financial options fo...