Die Finanzierung zivilgesellschaftlicher Projekte - Unerlaubtes Bankgeschäft?
2017
Rolf Novy-Huy, Beatrice Nolte, and others
The document titled "The Financing of Civil Society Projects" by the Trias Foundation provides a comprehensive overview of financing options for civil society initiatives in Germany, particularly focusing on housing and neighborhood projects. It addresses legal frameworks, including the Small Investor Protection Act, the German Banking Act, and the German Investment Code, which influence funding strategies. The guide highlights community-based financing methods such as crowdfunding and cooperative shares while navigating legal complexities imposed by regulatory bodies like BaFin. It offers practical examples and step-by-step guidance for creating financial plans, emphasizing the importance of transparency and risk disclosure. Recommendations include building financial literacy among groups and engaging with regulatory authorities to clarify legal uncertainties. Overall, the guide serves as a crucial resource for project organizers aiming to successfully finance socially beneficial initiatives within the regulatory landscape of Germany.
The document titled "The Financing of Civil Society Projects" is a comprehensive guide published by the Trias Foundation, with contributions from Rolf Novy-Huy and Beatrice Nolte. It was issued in January 2017 and later revised in March 2020. The brochure addresses the complex topic of financing for civil society initiatives, particularly focusing on housing and neighborhood projects. It aims to demystify financial processes and provide practical advice for project organizers navigating legal and financial hurdles.
Context and Purpose
The guide is designed for civic engagement initiatives considering community-based funding. It provides an overview of the current legal framework in Germany, including laws such as the Small Investor Protection Act (KASG), the German Banking Act (KWG), and the German Investment Code (KAGB). The publication seeks to empower project organizers by offering tools to understand financing mechanisms, avoid unauthorized banking practices, and align with regulatory requirements. It also highlights the importance of community-based financing as part of an overall funding strategy.
Key Findings
1. Financing Challenges and Opportunities
- Community-Based Financing: The guide emphasizes the potential of community-supported funding models, including crowdfunding, subordinated loans, and cooperative shares. These methods can supplement traditional bank loans and state subsidies.
- Legal Complexities: Changes in capital market laws have created uncertainties for civic initiatives. For instance, stricter interpretations by BaFin (Germany’s Federal Financial Supervisory Authority) have complicated financing for cooperatives.
- Practical Examples: Case studies such as Kattendorfer Hof's "Kuhaktie" (cow shares) and Leipzig Energy Cooperative illustrate successful community financing models.
2. Legal Framework
- Small Investor Protection Act (KASG): Introduced to close regulatory gaps and protect small investors, this law imposes stricter requirements but includes exemptions for social and charitable projects.
- German Banking Act (KWG): Defines deposit-taking and lending activities. Community projects must navigate these rules to avoid being classified as unauthorized banking businesses.
- German Investment Code (KAGB): Regulates investment funds but exempts operationally active companies like cooperatives focused on their own business activities.
3. Tools for Financial Planning
- The brochure provides step-by-step guidance on creating viable financial plans:
- Conceptualizing projects
- Calculating costs
- Exploring equity and debt options
- Engaging with banks
- It also offers insights into fostering transparency within groups when discussing finances.
4. Exemptions for Civic Projects
- Charitable organizations can raise funds through subordinated loans without extensive compliance obligations if they meet specific criteria.
- Social projects, such as affordable housing initiatives, benefit from similar exemptions but must prepare an Investment Information Sheet (VIB) instead of a full prospectus.
5. Recommendations for Project Organizers
- Build financial literacy within groups to facilitate informed decision-making.
- Engage in dialogue with BaFin to clarify uncertainties around legal interpretations.
- Emphasize transparency and risk disclosure when seeking community support.
Conclusion
This guide serves as a vital resource for civil society groups aiming to finance socially beneficial projects while navigating Germany’s regulatory landscape. It underscores the importance of strategic planning, legal compliance, and community engagement in realizing ambitious initiatives. By combining practical advice with real-world examples, it equips project organizers with the knowledge needed to overcome financial barriers and implement sustainable solutions.