Grassroots groups in Mayo can more than triple social impact in local community
Community and volunteer-led organisations in Mayo who choose social finance solutions could see a social return of investment of over 3.42 times the initial investment.
That’s according to Community Finance Ireland (CFI), a social finance provider operating across the island.
Between 2016 and 2022, CFI supported 10 organisations in Mayo, with a total loan value of just over €1.7 million.
Based on a social value analysis undertaken by Rose Regeneration and the Rural Community Network, CFI has established that for every €1 spent in delivering projects on the island, local communities have seen a return on that investment of 3.42 times that investment through wider social benefits such as improved community health and increased employment opportunities and skill levels.
Operating on a finance model similar to credit unions, Community Finance Ireland provides volunteer-led organisations such as sports clubs, faith-based groups, community development groups and social enterprises with tailored social finance loans to deliver social impact in their local communities. Operating on an all-island basis, CFI invests all loan repayments into supporting other community projects on the island.
Dónal Traynor, CEO of CFI, says the cumulative impact of such projects is boundless: “We strive to create a lasting social impact in every community on the island of Ireland. Our team and clients can really see the multiplier effect played out in communities across the island every day.
“If a community development group in Mayo were to invest in remote working spaces, for example, the ripple effect sees stronger social connections in that community, more money spent in local businesses, and a greater sense of belonging for individuals who might have previously worked in isolation at home or spent hours on a commute.
“You cannot underestimate the social impact of these changes, and the social value analysis carried out by Rose Regeneration and the Rural Community Network, via the Social Value Engine platform, demonstrates the return of investment which communities can expect.”
Mr. Traynor added that social finance offers communities even greater social impact.
He explained: “Not only do we offer more tailored supports and knowledgeable advice for volunteer-led organisations, but communities also know they’re part of an all-island social impact network – in repaying their loan, a sports club in Ballymoney is supporting a social enterprise in Bantry.
“Any profit goes straight back to supporting other similar projects; it’s a circular social economy that is making real change happen in communities across the island.”
FLEXIBLE
Following the announcement of the 2023 Sports Capital and Equipment Programme by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media earlier this summer by Minister Catherine Martin, Mr. Traynor invited sports clubs in Mayo to consider social finance for match-funding government grants.
Alongside its flexible terms, match funding using social finance can allow groups to develop facilities and deliver activities to improve health and wellbeing in communities across the island.
He said: “We’ve worked with three sports clubs in Mayo, such as Ballina Boxing, Training and Fitness at Dick Hearns Gym CLG to deliver works approved for a Sports Capital grant or similar grant-aid programmes.
"Our team have helped numerous sports clubs of all sizes by offering flexible term loans that match funding or government grants, and this support allows the clubs to develop facilities and deliver activities that wouldn’t otherwise exist.”
Vincent McMahon, secretary at the Dick Hearns Centre in Ballina, commented: “Community Finance Ireland were vital in assisting us in developing our facilities. Recent guests visiting from Poland were impressed with the training camp on site. Thanks to Donal for all his help and support during the application process.”
Conor McGale, evaluation and impact manager at Rose Regeneration, added: “We were delighted to be approached by Community Finance Ireland to carry out this analysis, which clearly demonstrates its social impact in supporting organisations across the island of Ireland.
“This report focuses on the assistance that CFI provided to a wide range of groups, whose financing and fundraising options were seriously curtailed by the Covid-19 pandemic. Through the conversations that we had, it was clear that CFI played an essential role in ensuring many VCS organisations were able to keep growing and developing whilst continuing to provide essential services to their local communities.”
For more information, visit www.communityfinanceireland.com.