New report demonstrates community wealth building in action: £21.8 million raised within Scottish communities

Democratic Finance Scotland has launched its latest report demonstrating 10 years of direct support to 70 community share offers.

The programme, which is part of Development Trusts Association Scotland (DTAS), assists communities across Scotland in raising and managing their own finance through democratic models like community shares, bonds and one-off community lotteries. In addition to providing expert advice, it also offers microgrants to help groups amplify their share offer campaigns – £206,476 of grant funding has been distributed collectively so far.  

Since its launch, the programme has helped community-led organisations raise a combined £21.8 million from 21,468 investors, including community members, local businesses and the wider public. The resulting enterprises have created long-term social and economic impact, including 208 new jobs.

The initiatives supported span a wide range of projects, from local shops and pubs to community-owned solar farms and hydro schemes – all of which exemplify the power of democratic finance to turn local commitment into real investment. 

Of all the organisations supported by Democratic Finance Scotland, 95% are still operating – demonstrating the impact of community resilience during especially challenging economic circumstances.

Morven Lyon, Head of Democratic Finance at DTAS, said: “The initiatives supported by DTAS are a prime example of using community shares to enhance public funding and put ownership and decision-making directly into communities’ hands.

“In giving vital projects the best possible chance of success, they also enable people to invest in the ideas they believe in. It means that money, jobs and control are kept in local areas, turning talk about community wealth building into tangible outcomes in our communities.

“We’ve reached significant milestones in Scotland over the past decade, with the total value of community assets acquired using community share offers reaching nearly £40 million, resulting in the creation of more than 200 jobs.

“Our team has worked hard to contribute to this success, working closely with the committed volunteers and staff of 70 community organisations across the country.

“The fact that almost all of the organisations we’ve supported are still operating shows what’s possible when communities are trusted to lead – and this impact is only set to grow over the next 10 years.”

CASE STUDIES

Bellfield Big Build

Last year, Democratic Finance Scotland assisted community-led organisation Action Porty in exceeding its target to raise funds to redevelop Bellfield church.

The building had been purchased by the Portobello community in 2018 – marking the first successful urban ‘Community Right to Buy’ in the country – and used as a driving hub for regular activities and events.

Seeking to refurbish the building to expand on its services, the Bellfield Big Build community share offer was launched last year.

With Democratic Finance Scotland’s expertise and support, Action Porty exceeded its minimum target within the first month, unlocking £450,000 in match funding from the UK Community Ownership Fund and raising a total of £168,525 in addition to doubling its membership to over 1,100.

Glenuig Community Inn

The programme also supported the community of Glenuig’s 2025 community share offer which aimed to secure ownership of the Glenuig Inn – a business central to the local population, providing jobs, accommodation, food and drink services and a vibrant events space.

With the current owner intending to sell the Inn, and several community-led organisations already thriving in the village, there was a unanimous agreement that a community buy-out would be the favoured option.

Through Democratic Finance Scotland’s support, the community received applications for more than 300,000 shares, securing the Inn’s long-term future as a welcoming, year-round hub at the heart of the village.

Glenuig Community Inn committee member, Louise Johnson, said: “Our DTAS Advisor was able to talk us through the requirements and good practice of how we should run our share offer prior to launching it.

“None of the committee had been involved in a community share offer previously, so the handholding was much appreciated. Similarly, providing the external consultant to assess us for the Community Shares Standard Mark was very useful and much appreciated. We were also awarded a microgrant to help with early marketing and promotion of the share offer.”

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Building vibrant communities: time for new thinking

Ian Cooke (pictured below) was manager of local community regeneration agency The Pilton Partnership/North Edinburgh Trust before moving on to become Director of Development Trusts Association Scotland. He shared his thoughts on community development at a national conference last month:

Ian-Cooke“Over the last few years we have seen the term ‘community’ increasingly move to the centre of the policy agenda in Scotland – community-led regeneration, community ownership, community renewable energies, community enterprise and a proposed key role for communities within the re-provisioning of public services.

“While this is both welcome and exciting, it does raise an important question about how we build capacity in communities, if they are to successfully rise to this challenge, and respond positively to these new opportunities. The development of enterprising, asset owning communities, who can lead regeneration processes and play a key role in future public sector delivery, invariably requires the development of an expanded knowledge base and skill set within communities, and requires us to re-think how we do community capacity building.

“Historically, community capacity building had been largely done ‘to’ communities, from outside agencies such as local authority services, Third Sector Interfaces (formerly CVS’s), consultants and other specialist voluntary agencies. Will this support continue to be available in the future, and are existing community capacity building services and agencies really up to the task of responding to this new agenda?

“Discussions about community capacity building have often been dominated by community development professionals. But much of the fore-mentioned policy development has been influenced by largely organic, bottom-up activity, as community after community has responded to threats and opportunities. In doing so they have drawn inspiration and support from a wide range of sources. Is it now time to reflect on this experience, and listen to communities themselves about what kind of capacity building they require?

“As Director of the Development Trusts Association Scotland, I have had the privilege of working with, and representing, some of the most dynamic community organisations in Scotland over the last few years, and it has been fascinating to discuss this issue with many of them. So here are a few thoughts to kick off this much needed debate about future capacity building provision in Scotland.

“Firstly, there seems to be a lack of clarity about what we mean by community capacity building – whose capacity is being built and for what purpose? My own experience suggests the need to focus on building the capacity of community anchor organisations as a pre-requisite for any wider community capacity building.

“Secondly communities need to be inspired, not patronised! The most effective (and cost effective) single intervention in the early development of community organisations is the opportunity to visit another community to find out what can be achieved and to learn how to go about it. This requires small grants of a few hundred pounds. So why do so few funders want to provide these?

“Thirdly, rather than funding capacity building activity as something done to communities, let’s recognise that the opportunity to employ their own staff is the most effective way to create a step change in capacity, and start investing directly in the core costs of community anchor organisations.

“Finally, let’s recognise the wealth of knowledge and experience which already exists within the Scottish community sector, and start to tap into this much more effectively and systematically by developing Peer Support Programmes.”

With the Community Empowerment Bill now before the Scottish Parliament, what can be done to support communities to influence the decisions that affect them? Let us know you thoughts