There are three reasons:
1.LRS wants the MAF organisations to be members of the society. As shareholders, they own London Rebuilding Society. Our member organisations take an active role in shaping the Mutual Aid Fund project as well as the wider organisation.
2. Building up a shareholding is a way of building up an asset for the organisation.
3. The shareholding acts as a part-guarantee if you apply for a loan from LRS: the loan that LRS makes to the organisation will be a maximum of four times the shareholding (so, for example, if the group’s shareholding is £1,500, it can borrow up to £6,000). The maximum MAF loan an organisation can apply for is £10,000.