Frequently Asked Questions

 

Citylife works across the UK to tackle social, economic and intellectual exclusion. It issues social investment mechanisms (otherwise known as charitable financial instruments) to enable organisations, businesses and local people to finance solutions to counter disadvantage in their own communities.

 

Its core belief is that all people should have access to the choices that will enable them to improve their own lives and make a lasting contribution to their local communities.

 

Its vision is for a society where relationships matter: where communities and neighbourhoods are good places in which to live, work and learn, where all members of society have access to the choices that will enable them to feel physically safe, financially secure, at peace with their neighbours, valued as part of their community and willing to balance personal gain with community benefit.

 

Citylife is an independent charitable organisation, incorporated as an Industrial and Provident Society. The benefits it delivers include:
• helping excluded individuals get into employment and enterprise
• regenerating social, economic and intellectual capital
• alleviating crime, poverty, urban neglect and other unemployment related issues

 

In order to deliver its vision, Citylife raises funds in three ways - membership, donations and selling Bonds. Each leads ultimately to community benefit (as opposed to member benefit, as is the case in many Industrial and Provident Societies).

  

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Membership
 
How does membership work?

Citylife issues shares to its members. Shares cost £1.00 each and members can buy as much as £20,000, or as little as £10, worth. Members want to know that their money is being used to help people who are excluded, disadvantaged or marginalised so that they can enjoy being part of a thriving community again. But they have not made a gift of their money – they can get their money back.

 

Members must be over 16 years old and can be private individuals or representatives of organisations, societies, companies or local authorities.

 

Membership is for those who share the Citylife’s vision to change for the better the lives and places of people where they live and are prepared to risk their share account to achieve this. Members elect the board of directors, using a one-person one-vote system, and hence steer the direction of the society. They help guide the location and direction of new projects. But if you want a guarantee that you will receive your money back in full on a fixed future date, membership may not be the route for you, but buying a Bond may appeal to you.

 

Shares can be redeemed in whole or part for cash at their original cost, but only at six months notice and subject to the discretion of the directors.

 

Shares cannot be transferred – your shares would need to be redeemed and the proceeds disbursed as appropriate.

 

As a society for the benefit of the community, Citylife has charitable status, meaning a shareholding can be converted into a gift at any time by a member (who will then receive Gift Aid) but, obviously, will then be unable to ask for their money back.

 

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Bonds
 

The Bond is a unique mechanism where Citylife returns 100% of the money in five years time. It is held under trust and investors have a bank guaranteed return of their investment.

To get the money to work, Citylife loans some of the money to not-for-profit developers (such as housing association Places for People) who invest it to build or renovate properties for community benefit.

 

This 5-year loan is then paid back by with compound interest, which enables Citylife to return all the original investments that private individuals and businesses have made. The balance is used to fund local projects tackling unemployment, financial inclusion, skills training, crime and so on.

 

Membership is for those who share the Citylife’s vision to change for the better the lives and places of people where they live and are prepared to risk their share account to achieve this. Members elect the board of directors, using a one-person one-vote system, and hence steer the direction of the society. They help guide the location and direction of new projects. But if you want a guarantee that you will receive your money back in full on a fixed future date, membership may not be the route for you, but buying a Bond may appeal to you. 

Citylife Bonds can be bought by private individuals, companies and local authorities. For companies a Bond is an attractive Corporate Social Responsibility action as the investment remains on the company’s balance sheet and does not affect the profit and loss account.

 

For other Citylife Bonds, we have had several local authorities invest, often as part of a specific social enterprise, community or employment strategy. Again, it is an attractive option to local authorities who can utilise their budget underspend.

 

If you have any questions about investing please get in touch with us via + 44 (0)1223 488400 or email admin@citylifeltd.org

 

Yes. You are guaranteed your money back in full at the end of the agreed term (usually five years).

 

No – not unless you make a gift of part or all of it at the end of the agreed term.

 

Yes, just make a CAF cheque payable to Citylife Ltd for the amount for which you wish to buy a Bond. If you need any information on CAF accounts, go to www.allaboutgiving.org. Your CAF account will be refunded after five years.

 

The Bond(s) cannot be cashed in early but can be transferred to another beneficiary on presentation of the relevant legal documentation. Alternatively Bondholders can elect that the value of their Bond should revert to Citylife as a legacy.

 

 

Online purchasing of a Citylife Bond is extremely secure and is managed by HSBC secure e-payments. Upon receipt of your purchase, we will send you a form to check over and sign e.g. we will ask you to confirm the name you would like to appear on the Bond certificate once issued.

 

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Donations
 
How does Citylife raise money through donations?

We receive charitable grants and individual donations to help cover overhead costs. Donations can be of money, shares or property. Both Members and Bondholders sometimes choose to make donations from their investments in Citylife. 
 
Can you claim Gift Aid on the donations I give?

Yes. We can claim 28p for every pound donated by individual taxpayers. Higher rate taxpayers can apply for relief from higher rate tax (and donate it or keep it for themselves as they like). Citylife’s code for Self Assessment Tax Returns is FAQ62RG.

 

Find more detail here: http://www.hmrc.gov.uk/charities/charities-search.htm.
Corporate donors can be eligible for relief too – the detail is available here: http://www.hmrc.gov.uk/CHARITIES/giving-to-charities-bus.htm  
 
 

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What is the Citylife legacy?

Our legacy is financial, social and economic. In philosophical terms it is a stronger sense of mutual solidarity within the communities where we work, places that are becoming known as 'Relational Cities', responsible for and supporting poor and disadvantaged people.

 

£10m of investor's funds has released an estimated £25m of leveraged or matched funds from European Union and UK Government, amongst other sources, resulting in a combined total of over £35m being invested in local communities.

To date 3630 unemployed people have been provided with advice, support and training and around 1,000 people have been helped into existing jobs. Over 200 people have been helped to start new businesses and thereby creating further jobs.

 

Relationship building is a key driver of our work, both in terms of our overall ethos, but also as a way of communicating effectively with our supporters.

 

We believe that relationships – the connections that create trust, loyalty, cooperation and support are the key to well-being for individuals, organisations and the economy. These connections are frequently under-valued and constantly facing pressure from cultural trends and economic demands. This why our Bonds are so effective in bridging financial and relational gaps in communities and have become such an essential tool countering disadvantage in society.

 

Citylife’s Bonds have attracted over 1300 supporters ranging from personal investors, corporate investors, community groups and trusts. They have all chosen to invest their money for the benefit of their communities, and in doing so have strengthened cross-community relationships and helped to bridge the divide between those who have and those who have not.

 

Citylife has built support from a wide range of individuals, companies and charities that share a common concern for those excluded from the economic prosperity (and social, health and general well-being that goes with it) that is enjoyed by most of the country.

 

For example:
• Grant makers and foundations including Reg Vardy, Maurice Laing, The Goldsmiths Company, the Office of the Deputy Prime Minister, Esmée Fairbairn, World In Need, Charities Aid Foundation, Bridge House Estates, Coalfields Regeneration Trust, Church In Society, Sir Halley Stewart, Allen Lane, Garfield Weston, Carnegie and The Church Burgess Trust
• Financial Institutions including Northern Rock, Cazenove, Nomura, Close Bros, RBC Capital Markets, Winterflood Securities, Bradford & Bingley, Principality Building Society, Royal Bank of Scotland, HSBC and Cattles.
• Professions including Allen & Overy, Taylor Vinters, Eversheds, Cameron McKenna, KPMG, Mazars, Irwin Mitchell and DLA Piper Rudnick
• Businesses across the UK including Diageo, Sage Software, Canary Wharf, Trinity Mirror, Fenwicks, Hays Travel, Braun, Northumbrian Water, Boots, Greggs the Bakers, Kier Group, Hammerson and British Land.

Citylife is run by a board of directors elected at an annual general meeting by its members using a one-member one-vote ballot system.

Directors act as charitable trustees. The current list can be viewed here: http://www.citylifeltd.org/page/9/people.htm.