1 BFS: Financial instruments for the social economy Dietmar Krüger Member of the Management Board Bank für Sozialwirtschaft AG, Cologne European Workshop

08.11.2006 Research, sozialwirtschaftliche Marktunterstützung, Europa-Service

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BFS: Financial instruments for the social economy

Dietmar Krüger

Member of the Management Board

Bank für Sozialwirtschaft AG, Cologne

BFS: Financial instruments for the social economy

Dietmar Krüger

Member of the Management Board

Bank für Sozialwirtschaft AG, Cologne

European Workshop

Financing Caritas Activities in Europe - Building Sustainable Financial Strategies

Caritas Germany, Caritas Europe, European Office for Social Finance (EOSF)

07th and 08th May 2008, Berlin

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© Bank für Sozialwirtschaft AG 2008

Selected financial products fromBank für Sozialwirtschaft

Selected financial products fromBank für Sozialwirtschaft

1. Revolving fundStart-up finance and financial assistance for non-statutory welfare services

2. A.B. SANIGA FundSpecial-purpose property fund for Church and welfare organisations providing care for the elderly

3. Multifunctional account number systemEfficient management of payments received on behalf of fundraising and member organisations


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1. Revolving fund

Set-up finance and financial assistance

for non-statutory welfare services

1. Revolving fund

Set-up finance and financial assistance

for non-statutory welfare services


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1. Revolving fund: set-up finance and financial support for non-statutory welfare services

1. Revolving fund: set-up finance and financial support for non-statutory welfare services

FederationBFS

€178m revolving fund

trust assets

Non-profit organisationsand projects

Interest-free loans

Repay-ments

Managementfee

German government funds

Fund assets are replenished when the

fund ends


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2. A.B. SANIGA Fund

Special-purpose property fund for Church and welfare

organisations providing care for the elderly

2. A.B. SANIGA Fund

Special-purpose property fund for Church and welfare

organisations providing care for the elderly


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Purchase or

construction

Basic system

2. A.B. SANIGA Fund2. A.B. SANIGA Fund


A.B. SANIGA property fund

Investor

= provides capital

Banks

= provide debt capital

Social carefacility

Operation

OperatorRent

Lease

Investment company

- Fund issuer- Investment decisions- Management

Investment committee

- Principles of investment policy- Advice

Consultants

- Advice and analysis regarding the selection of properties and operators


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3. Multifunctional account number system

Efficient management of payments received on behalf of

fundraising and member organisations

3. Multifunctional account number system

Efficient management of payments received on behalf of

fundraising and member organisations


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3. BFS multifunctional account number system3. BFS multifunctional account number system

BFS organisation

3 7 0 2 0 5 0 03 3 3

1 2 3 4 5 6 7

1 5 0 . 0 0

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BFS organisation

3 7 0 2 0 5 0 03 3 3

1 2 3 4 5 6 7

The multifunctional account number system combines the account number of the organisation (payment recipient) …

1 5 0 . 0 0


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BFS organisation

3 7 0 2 0 5 0 03 3 3

1 2 3 4 5 6 7

… with the code of the client (e.g. donor or member number) …

1 5 0 . 0 0


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BFS organisation

3 7 0 2 0 5 0 03 3 3

1 2 3 4 5 6 7

… to make up a 10-digit account number.

1 2 3 4 5 6 7

1 5 0 . 0 0


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BFS organisation

3 7 0 2 0 5 0 03 3 3 1 2 3 4 5 6 7

The first three digits are used to identify the organisation (as the payment recipient), …

1 2 3 4 5 6 7

1 5 0 . 0 0


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BFS organisation

3 7 0 2 0 5 0 03 3 3 1 2 3 4 5 6 7

… the remaining digits can be allocated as required.

1 5 0 . 0 0

1 2 3 4 5 6 7


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BFS organisation

3 7 0 2 0 5 0 03 3 3 1 2 3 4 5 6 7

The account number created in this way clearly identifies the sender.

1 5 0 . 0 0

1 2 3 4 5 6 7



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4. The BFS Mezzanine Fund for the social sector

New investment scope for social enterprises –

attractive investment options for investors

4. The BFS Mezzanine Fund for the social sector

New investment scope for social enterprises –

attractive investment options for investors


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4. The BFS Mezzanine Fund for the social sector4. The BFS Mezzanine Fund for the social sector


Advisory Board

Composed of investors, the Advisory Board provides advice to management when selecting target companies.

Target companies

= social enterprises which issue profit- sharing rights

BFS Mezzanine Fonds GmbH & Co. KG

Investor(general partner)



Fund management- IM Fünf GmbH (general partner) organisation and administration- IS (founding partner) portfolio structuring

Investment a

nalysis and support

Support

Documents

1 BFS: Financial instruments for the social economy Dietmar Krüger Member of the Management Board Bank für Sozialwirtschaft AG, Cologne European Workshop