FUNDING OPTIONS

The vision behind this project extends beyond merely creating a physical space for activities—it seeks to establish a lasting generational legacy. By empowering families to participate as community bondholders, this initiative provides a unique opportunity for these pioneering families to invest in their future while simultaneously contributing to the growth of a cultural landmark.

This approach not only helps generate essential funds for the project but also offers financial benefits to bondholders, particularly as a tool for retirement planning. Ultimately, the goal is to create a space that stands as a testament to the resilience and contributions of Black Canadian communities, ensuring their rich heritage is preserved and celebrated for generations to come.

1. Community Bonds

Community bonds are a type of social finance tool used by non-profits, charities, and co-operatives to fund projects that have a positive social or environmental impact. They are similar to traditional bonds in that they are interest-bearing loans from investors, with a set rate of return and a fixed term.

Key Features of Community Bonds:

• Issuer: Only non-profits, charities, and co-operatives can issue community bonds.

• Investors: Typically, these bonds are aimed at small-scale, non-accredited investors who are interested in supporting a specific cause while earning a financial return.

• Interest Rate: The bonds have a predetermined interest rate, which is usually relatively low compared to other investment options.

• Term: They have a fixed term, meaning the bond will mature after a certain period, at which point the principal and interest are paid back to the investor.

• Social Impact: The primary appeal of community bonds is their dual return—financial and social. Investors not only earn interest but also contribute to a cause they believe in.

Calculation of Community Bonds:

The calculation of community bonds involves determining the interest payments and the total return at maturity. Here's a simplified example:

1. Principal Amount: The initial investment made by the investor.

2. Interest Rate: The annual interest rate agreed upon.

3. Term: The duration of the bond in years.

4. Interest Calculation: Interest can be calculated annually, semi-annually, or at maturity, depending on the bond's terms.

For instance, if an investor buys a $10,000 community bond with a 4% annual interest rate for a term of 5 years, the interest can be calculated as follows:

• Annual Interest: $10,000 * 4% = $400

• Total Interest Over 5 Years: $400 * 5 = $2,000

• Total Return at Maturity: $10,000 (principal) + $2,000 (interest) = $12,000

This means the investor would receive $12,000 at the end of the 5-year.

Community bonds are a powerful tool for financing projects that benefit the community while providing a modest return to investors. They foster a sense of ownership and engagement among community members, making them a popular choice for socially responsible investing term.