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Last update : August 2004
Summary
Shared Interest is a membership based society which enables individuals in the UK to lend part of their savings to fair trade businesses operating in the Third World.
Structure
Shared Interest is a special form of co-operative lending society, with the same roots as a building society or credit union, though with a different purpose. Its investors are also its members and shareholders. Every member has one vote and together they own and control the society, except that they must use the society’s profits to benefit others as well as themselves. Members earn a modest amount of interest on their investment, which is paid annually, but they also share the risk if borrowers fail to repay.
Shared Interest was established in March 1990 after four years’ work on the proper role of investment and banking in a world of poverty and injustice. It was the first society of its type to be registered with the Registrar of Friendly Societies, under co-operative law drafted by the Christian Socialists in 1852. Their vision, like that of the founders nearly 140 years later, was of an alternative to the capital-driven company, an alternative based on fair trade and mutual service in meeting genuine human needs, rather than on the open-ended accumulation of profit. The society is incorporated with limited liability under the Industrial and Provident Societies Acts.
Activities
Shared Interest has two investment instruments – share capital, which is directed to fair trade finance (in partnership with IFAT, the International Fair Trade Association) and loan stock, which is directed to microcredit institutions (though Oikocredit, the Ecumenical Co-operative Development Society). They also hold some cash in reserve with European social banks.
The fair trade finance involves funding the whole cycle of production including purchase of raw materials, labour and shipping so that the producer can meet a particular order and providing credit to enable the fair trade buyer to sell the goods before they need to repay. The lending is backed by a sophisticated system of international payment and order tracking (the Clearing House).
Shared Interest finalist in UK social enterprise awards
In October 2003 the Society was a one of 5 winning finalists in the DTI Enterprising Solutions - Social Enterprise awards, sponsored by NatWest/Royal Bank of Scotland. Although Shared Interest was not named overall winner, the Society was extremely proud to be recognised by the DTI as a leading organisation working in this field.
In February 2004 the Society was named winner of the New Statesman and Co-operative Bank Upstarts Awards Best Revenue Model award. The New Statesman Upstarts awards have been running for 3 years and award leading social entrepreneurs and social business across a range of categories
Key figures
| to year end 30th September | 2003 | 2002 |
| Members (No.) | 8,194 | 8,352 |
| Share Capital | £17,767,262 (EUR 25,554,095) |
£17,675,864 (EUR 28,131,946) |
| Total Assets/balance sheet | £22,596,184 (EUR 32,498,467) |
£22,657,393 (EUR 36,060,277) |
| Number of employees: full time/half time | 15/3 | 13/3 |
