Community shares are a way for people to invest together in a local business or asset they want to own as a community, such as a pub, shop, swimming baths or energy scheme. They are withdrawable shares issued by a co-operative or community benefit society, usually with one vote per member however much each person puts in. You cannot sell them on for a profit, but you can usually ask to withdraw your money under the society's rules.
What are community shares, exactly?
The Community Shares Handbook, published by Co-operatives UK, defines them as non-transferable, withdrawable shares in an independent society with an asset lock. In plainer terms:
- Non-transferable means you cannot sell your shares to someone else, so there is no market price and no speculation.
- Withdrawable means you can ask the society to pay your money back, subject to its rules and the terms in its share offer document.
- Asset lock means the society's assets are protected for community use rather than being sold off for private gain.
Co-operatives UK describes community shares as a friendlier name for "withdrawable, non-transferable share capital", and says this kind of equity is available only to co-operative and community benefit societies. You cannot buy community shares in an ordinary limited company.
How do community shares work in practice?
A group of local people forms a society (or uses one that already exists), writes a business plan and publishes a share offer. The offer document explains what the money is for, how much the group needs, the minimum and maximum investment, whether any interest might be paid, and how withdrawals work.
Residents, customers and supporters then buy shares, often in modest amounts. According to the Community Shares Handbook, a society needs at least 20 members holding at least £10,000 of share capital between them to count as a community shares society.
Once the target is reached, the society buys or builds the asset and runs it. Members elect the board and vote at general meetings. The Handbook notes that most societies follow the co-operative principle of one member, one vote, so someone with £50 of shares has the same say as someone with £5,000.
What kinds of places have been saved with community shares?
The range is wide. Co-operatives UK's 2023 report, Communities Doing It For Themselves, mentions village post offices, independent cinemas, cultural spaces, carbon-cutting projects and a football club. The Community Shares Handbook adds renewable energy, local food growing and affordable housing as common causes.
Two recent examples from Co-operatives UK's Booster Fund review, published in February 2026:
- The New Clarence in Hull used a £10,000 development grant to prepare its offer, then raised £85,000 from 440 members.
- Bramley Baths in Leeds, a community-run swimming baths, serves more than 3,000 people with weekly swimming lessons.
How much money has been raised through community shares?
Quite a lot, and the numbers keep growing. Co-operatives UK's 2023 report found that around 130,000 people had invested £210 million in 540 community businesses through 710 share offers. Its current community shares page puts the total at more than £245 million raised since 2012, funding over 1,000 co-operative and community businesses.
The model also has a strong survival record. Co-operatives UK says about 92% of businesses that have used community shares are still trading.
Support is growing too. In 2025, the Community Shares Booster Fund made 30 development grants totalling £248,000, its highest number ever. Together with partner Community Shares ICOF, it invested £1.22 million, which helped unlock £5.54 million of community investment: about £4.54 raised locally for every £1 invested.
Are community shares a safe investment?
Treat them as a way of backing something you care about, not as a savings product. The Community Shares Standard Mark guidance from Co-operatives UK is clear on the key points:
| Question | Answer |
|---|---|
| Could I lose money? | Yes, some or all of it, if the business struggles |
| Is it covered by the FSCS? | No |
| Can I complain to the Financial Ombudsman? | No |
| Does the FCA approve the offer? | No, exempt community share offers are not FCA approved or regulated |
| Can I sell my shares for a profit? | No, but you can usually ask to withdraw them |
The good news is that there is a quality check. Offers can apply for the Community Shares Standard Mark, which shows an offer has been independently assessed against good practice. It is not a guarantee of success, but it is a sensible thing to look for. A practical rule: only invest money you could manage without, and read the offer document fully, including the section on risks and withdrawals.
How much can one person invest?
The offer document sets the minimum and maximum for each offer. There is also a legal ceiling: according to the Community Shares Handbook, the limit on withdrawable share capital one individual member can hold currently stands at £100,000. Most people invest far less. Spreading ownership across many small investors is the point, because it keeps control with the community.
How do you start a community share offer?
If your area has a building or service worth saving, these steps are a good starting point:
- Gather a core group of people with time, local knowledge and a mix of skills.
- Test support early with a public meeting or survey, so you know people would actually invest.
- Choose a legal form, usually a community benefit society, with help from a support body.
- Write a business plan that shows how the asset will pay its way.
- Prepare the offer document using the Community Shares Handbook and aim for the Standard Mark.
- Look for match funding. The Booster Fund offers development grants and match equity, where an institutional investor puts in money on condition that the community raises at least the same amount.
The Community Shares Unit, led by Co-operatives UK with Locality and other partners, offers guidance and training. Many groups also learn a lot by talking to people who have already run an offer nearby.
Frequently asked questions
Do community shares pay interest?
Some do and some do not. Any interest is set out in the offer document and depends on the society being able to afford it. For many investors, the main reward is keeping a valued local place open.
Can I get my money back from community shares?
Usually yes, by asking the society to withdraw your shares, but it is not automatic. The society's rules and offer document set out any notice period and conditions, so read them before you invest.
Who can issue community shares?
Only co-operative societies and community benefit societies can issue them. Co-operatives UK notes this form of withdrawable share capital is unique to these two types of society.
What is the Community Shares Standard Mark?
It is a mark awarded to share offers that have been independently assessed against good practice in the Community Shares Handbook. It does not protect your money, but it gives investors more confidence that the offer is well prepared and fairly explained.
How is a community share different from a normal share?
A normal company share can be bought and sold, and its value can rise or fall, with voting usually based on how many shares you own. A community share cannot be sold on, does not rise in value, and normally carries one vote per member.
How does MeWeBe relate to community ownership?
Community shares show how much people can achieve by pooling small amounts for something they share. MeWeBe explores a related idea online: a free UK community where members earn MWB coins (virtual points with no cash value) for taking part, and where startups in the network pledge a share of future profits to a community pool. Any distributions from that pool are a roadmap goal rather than a promise, and would only begin once startups make sustained profits. You can read how MeWeBe works, swap ideas about local ownership in the forum, or join free if you would like to be part of it.