NEW: Providence’s Capital Good Fund Launches Non-Profit IPO
Friday, January 24, 2014
Through this approach, CGF seeks to raise at least $100,000 by issuing 4,000 ‘Social Innovation Shares’ priced at $25 a share. In addition to a tax-deduction, shareholders will be entitled to vote to fill one seat of CGF’s Board of Directors and will have access to other perks, such as CGF jewelry, t-shirts and custom ‘stock’ certificates.* In the first month of the campaign CGF has already sold 682 shares to 93 early adopters.
“One out of three Americans lives at or near the poverty line and income inequality is at its highest level since the Great Depression,” notes Andy Posner, Founder & Executive Director of CGF. “Solving these problems requires forward-thinking, a powerful business model and, yes, money. For us, the IPO concept opens the doors to engaged supporters from around the country—the kind of support we need to continue to grow.”
After five years of building the infrastructure needed for scale, CGF faces one primary barrier to bringing its services to families nationwide: capital. Specifically, they need exactly what high-growth for-profit ventures need: an infusion of capital with which they can invest in their rapid expansion.
High-profile leaders in the business, philanthropic, government and other sectors are getting on board to support both the IPO and CGF’s mission of ending poverty in America. These include Ellen Ford, CEO of People’s Credit Union; Bruce Van Saun, CEO of RBS Citizens Financial Group; and RI Representative Frank Ferri.
Alan Hassenfeld, former Chairman and CEO of Hasbro Toys and an active philanthropist in Rhode Island, has also purchased one of the first shares. “I believe strongly in Capital Good Fund’s model,” Hassenfeld said. “Too many companies seem to take advantage of the poor. This Non-Profit IPO concept will enable Capital Good Fund to bring its products and services to thousands of families in need.”
Funds raised through the IPO will be used to further CGF’s mission of using financial services to tackle poverty. In addition, a portion of funds will go toward key investments that will attract more donors, supporters and customers. For the campaign, CGF is using Indiegogo, a popular crowdfunding platform.