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: Mary Lawlor
: CEO, Clann Credo
: A registered charity which has provided loans of €215m to over 1,500 community and voluntary organisations countrywide
Since 1996, Clann Credo has provided affordable loan finance to community organisations with the aim of generating social benefits. As part of the community and voluntary sector, it is committed to supporting organisations with affordable loans to enable them continue their work.
“As a social finance provider, we don’t just look at your accounts, we also look for your social impact,” CEO Mary Lawlor explains. “We are proud to say that Clann Credo lends to any community organisation that generates a social return and can demonstrate capacity to repay a loan.”
To date, Clann Credo has invested €215m in more than 1,500 community and voluntary projects throughout Ireland — loans which have helped community organisations to provide a diverse range of services from transport to childcare to community tourism to eldercare.
“All organisations need finance, and yet for community groups, voluntary organisations, charities, sporting associations and social enterprises, raising finance can be particularly challenging as these types of groups don't have typical financial models and P&Ls.
"Personal guarantees, a banking industry standard, is not possible or desirable for most community group leaders. When it comes to return on investment, banks typically don't measure the social impact of their loanbook.
"Nonetheless, children's playgrounds, theatre groups or sports clubs yield a huge return in terms of social impact in communities around Ireland.”
Social finance is an alternative model of investment, differing from conventional models in that it demands investments produce both a social and a financial return — guided in its aim of generating a tangible social benefit for the community.
In delivering resources to communities and enterprises overlooked by conventional outlets, organisations are assessed first on their capacity to deliver meaningful benefit to either the people or the community they serve and then on their ability to repay the loans.
“Working like a social bank, Clann Credo provides a proven finance solution for community-led projects and services. It is a category of lending that uniquely places an equal focus on the social impact potential of a proposal along with the organisation's capacity to repay the loan.”
In addition to being a financial game-changer for voluntary and community groups, the organisation continues to have a significant impact in disadvantaged areas. According to the latest impact report, 65% of Clann Credo's social finance lending in 2023 reached communities with a below-average score on the Pobal Deprivation Index.
Specifically, Clann Credo demonstrated an increase in its lending to communities classified as disadvantaged (11%) or extremely disadvantaged (4%) during that year.
In 2023, Clann Credo's lending to social enterprises and community groups totalled €33.6m, of which €18.3m was to enable groups, via bridging loans, avail of grant aid such as LEADER, Sports Capital, Clár, SEAI and other public funds.
With more than 700 customers and a €50.3m loan book, this strong and increasing demand for Clann Credo social finance reflects the determination and growing ambition of local community groups to identify and implement solutions which deliver social and economic community resilience.
Speaking at this week’s Clann Credo annual conference, ‘Building Sustainable Communities through Social Finance’, Mary Lawlor stressed the organisation's focus continues to be making social finance accessible to all communities who share in the mission for positive social change.
“We recognise that as Ireland's population grows and develops, Clann Credo will play a critical role in supporting sustainable and inclusive communities of today and tomorrow. We are excited to support both our existing and new customers in developing projects and programmes that enhance their local areas.”
Appointed CEO in 2021, she has been an established leader in the community and voluntary sector for over 22 years, with a proven track record of delivering results for investors and stakeholders.
Prior to her appointment with Clann Credo, she held the position of chief executive of Carlow County Development Partnership for 12 years and chief executive of Carlow LEADER Rural Development Company for seven years. Like many of the Clann Credo team, she is also very active in community groups in her own area.
With the support of the Presentation Order, Clann Credo was established in 1996. Since then, other religious congregations have joined as social investors. Following a 2007 government initiative, the Social Finance Foundation was established, and funded by the retail banks.
Social Finance Foundation benefits from donated and low-cost funding from Irish banks and acts as a 'wholesaler' to its lending partners.
The organisation is not in receipt of public funds and welcomes philanthropic support nationally and internationally.
“Talk to any community organisation financed with Clann Credo, and they will tell you the same story: Clann Credo understands community groups more than any other bank ever could. Unlike banks, Clann Credo operates flexible loan repayments, unsecured against personal wealth or individuals, high-risk appetite combined with efficient and dedicated lending professionals, rather than automated and impersonal banking processes.
"Despite being one of the largest finance providers in the country, Clann Credo continues to be personal and on the ground around the country,” she adds.
The nature of grant aid and certain funding community groups may benefit from is that it is paid retrospectively, and where its bridging loans provide a vital lifeline for community projects.
“Projects would simply not happen without the interim finance that Clann Credo delivers in a timely and bespoke manner for organisations.
"Similarly, organisations often have to provide matching funding to deliver funded projects, but fundraising efforts and donations can take longer than anticipated. Clann Credo regularly provides this interim funding to enable the drawdown of funds ahead of the matching funding.”