Social Investors provide the capital that Clann Credo invests in projects that advance social justice.
The Presentation Sisters, the founding member of Clann Credo, took the first step and made investment capital available by way of long-term loans. Since 1996, they have been joined by over 20 religious charities.
Charities are afforded the unique opportunity to engage with a dynamic model for change and positive transformation with a commitment to social justice at its core, while simultaneously conserving capital.
This unique financial model makes the vision of ‘Justice and Equity’ a reality.
Capital
Clann Credo’s capital now comes from a number of sources.
The loan capital from the religious charities now stands at just under €10 million.
Clann Credo also borrows from the Social Finance Foundation (SFF) for onward lending to projects. It is a wholesale fund which provides loan capital to ‘Social Lending Organisations’. The SFF, was established by the Government in response to proposals made in a number of Clann Credo initiated reports. The SFF's initial seed capital and long-term loan facilities are provided by the Banking Industry through the Irish Banking Federation (IBF).
All Clann Credo’s capital is raised from private, non-statutory sources; it has not received any state funding for the capital it lends.
Income
Clann Credo’s main source of income is the interest charged on loans. It also has in the past received rents from investments in community buildings. In addition in the earlier years, a number of equity investments were made in private companies which can generate a dividend.
It also earns interest on bank deposits and has a small income from fees, such as Capital fees on inward investment from religious charities and administration fees on loans.
It earns additional income from consultancy to other community and voluntary groups, including training, project management, and general consulting advice.
Income Support from Investors
Clann Credo may receive up to 2% per annum on the gross investment received from investors as a contribution towards costs. (This does not apply to the SFF sourced capital). In 2011 income support from Social Investors was 0.0% (2010 0.0%).
Clann Credo does not receive any statutory funding for its day-to-day operational costs.