Community Bonds – A Primer

Holding Hands | Source: katerha on FlickrIs it possible to invest in a sustainable and ethical fashion that promotes environmental health and a better world without resorting to mutual funds, or some other packaged investment? With the advent of community bonds, it is.

What are Community Bonds?

Community bonds are just what they sound like – bonds issued by local, community organizations (either a non-profit or a co-operative) to local, community investors. The investment funds provide the organization with either money to pay down existing loans that they may have, or to provide start-up capital for a potential project. In exchange, the organization agrees to pay a fixed rate of return on the investment over a fixed term, and to repay the investment at the end of the term. In Canada, depending on whether or not the bond offering has been approved by the Provincial investment regulator, the bonds may be eligible to be held inside an RRSP or TFSA.

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