Community Economic Development Investment Funds are pools of capital, formed through the sale of shares (or units), to persons within a defined community, created to operate or invest in one or more local businesses. The Nova Scotia Equity Tax Credit encourages local residents to invest in small businesses through CEDIFs with a personal tax credit of 35 per cent. Over the 14 years of their existence, CEDIFs have grown from an untested concept to a proven model for community capital development that now manages more than $50 million in 48 funds, all raised from local individuals. The model has been transferred to Prince Edward Island and other provinces have also expressed interest.
This session introduces the CEDIF model, illustrates the impacts it has had redirecting investments for local impact, and considers key lessons from Nova Scotia’s success.
- Chris Payne, Government of Nova Scotia
Chris is Investment Manager for CEDIFs with Nova Scotia Economic and Rural Development and Tourism. He is a professional accountant (CMA) and has completed the Canadian Securities Course and the CICA in-depth GST/HST program. He is also on the National Board of Examiners for the CMA. He has been with the CEDIF program since before it began and promoted the investment tool throughout the province and internationally.
- Nova Scotia Government webpage on CEDIFs
- CEDIF Public Policy Profile by the Canadian Social Economy Hub
- Equity Tax Credits as a Tool for CED by Stewart Perry and Garry Loewen, Canadian Centre for Community Renewal
- “No Payne, No Gain: Chris Payne on Hyperlocal Investing” blog post by Peter Deitz on socialfinance.ca
- World Economic Forum profile of CEDIFs as part of their Policy Guide to Scaling Social Innovation (see page 40).