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. CHAIRS REPORT
8. Eds 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.

KEY DATES *

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.
www.community21.com.au/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 Australias 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 21s
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

CHAIRS REPORT

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 Bankings 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. Wed love to have you on board.

Community 21s capital raising is about real

impact investment. It is an expression of the
sectors willingness to create solutions and look for
new ways to meet the demands of the future.

EXECUTIVE DIRECTOR'S REPORT

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 Australias 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 www.letsact.com.au

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

How does act. work?

Its 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.
letsact.com.au.
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.

10

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

Weve 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 weve deepened our relationship with
the UKs Charity Bank, Social Enterprise UK,
INAISE and the Institute for Social Banking.

As a movement that has

collaborated for over a century,
Australias 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

ACTIVITIES + ACHIEVEMENTS

11

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!
Dont 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, were
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 weve had both virtual and physical
facelift.
This year Community 21 produced 2 videos with
the wonderful digital storytellers.

Weve been proud to facilitate and contribute

the sector knowledge component of this to
Community Sector Bankings big leap forward in
this space the act. platform.

12

leadership
An ambassador for social banking
Peter Quarmby was delighted to be invited to
present at the
Institute for Social Bankings 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

ACTIVITIES + ACHIEVEMENTS
8

13

Collaboration

Innovation

Leadership

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

14

And finally
By any measure the Australian not-for-profit sector is huge, and has a profound impact
on all facets of Australias society, economy and democracy.
The Australian not-for-profit sector responds to our societys needs delivering and
supporting environmental programs, childrens 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

Were looking for not-for-profit investors

Wed love to hear from you.
Contact us:
E: invest@community21.com.au
T: +61 2 4855 8433
W: www.community21.com.au

A prospectus containing the offer of shares in Community 21 Limited ACN 097612416 (C21) is available
at www.community21.com.au/prospectus 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.