The Livelihoods Group has been working hard on creating a local currency for Stroud and the Five Valleys.  The Stroud Pound was launched on 12th September 2009.

Visit www.stroudpound.org.uk to find out about this initiative plus news, comments, contacts and where to obtain your Stroud Pounds!

We are always on the lookout for more helpers to assist in running the scheme.

Stroud Local Currency

A Guide for Charities

The local currency is an initiative to support the local economy. There are many flourishing local businesses Stroud and a very successful local food economy. We want to build on this foundation and help the local community to thrive and become even more sustainable. The aim is to launch the currency in early summer 2009. We are planning to base the design for our currency on the Chiemgauer—a highly successful local currency in Germany- www.chiemgauer.eu

Why a local currency?

The money we use for most of our transactions—the pound sterling—is tied into a system of global transactions and processes that do not serve people in Stroud particularly well. A sizeable proportion of each pound spent goes to service debts in the global economy draining resources away and reducing the viability of local services. The current turbulence in the financial markets also suggests that global currencies may not be a secure basis upon which to organize our economic life.

How will the currency work?

• Local people buy local currency vouchers in exchange for pounds sterling (1 local currency unit = 1 pound Sterling).

• They then spend their local currency with participating shops and businesses (or make donations with it to listed local charities or non-profit organisations).

• Not-for-profit organisations can likewise buy (or be given) local currency vouchers to spend with participating traders.

• Charities can also register as traders to sell their products or services.

• If traders are unable to spend all their vouchers they can exchange them back to Pound Sterling less a 5% redemption charge.

• Of this redemption charge 2% goes to pay for administration and 3% to support the local charities or social enterprise projects chosen by currency purchasers.

Why will the currency lose value after six months?

- One of the most important ways to revive the economy is to increase the amount of money in circulation. Having a date by which consumers must spend their money means that it is kept in circulation.

• To encourage circulation the notes become invalid after six months. To restore their full value a stamp amounting to 3% of their value must be purchased.

• After two years instead of a stamp the notes are replaced.

• More money in circulation means more economic activity. More economic activity means more business and more jobs.

How will it benefit local charities?

One of the most important features is the support given to the local not-for-profit sector. -.

• Everyone who purchase the currency vouchers can choose a member charity or social enterprise to support.

• Each registered charity or not-for-profit organisation is listed on the regularly updated local currency website and eventually in a catalogue published each year.

• For every local currency voucher purchased 3% of its value is allocated to a local not-for-profit organisation and paid out annually in local currency units.

• Charities can use these donated vouchers to purchase from the local economy. As the scheme grows more funds can flow towards charities.

• The not-for-profit sector has a direct interest in signing up members. The more members a charity signs up, the more payments it is likely to receive.

• If 50 consumers each exchange £100 every month, in one year a charity could stand to receive up to £1800.

How to become a member?

• A charity signs up as a member of Stroud Currency Co-operative Ltd. for an initial enrollment fee of £5. As a member it has a decision making vote.

• If a charity wishes also to sign up as a trader and offer goods or services to the local community, an additional small and proportionate charge will be made.

• To join the attached form should be returned to the registered office or dropped of at an outlet.

How will the currency be brought into circulation?

• There will be a special launch to promote the currency and bring the first notes into circulation.

• One or more distribution points will be set up in Stroud for people to sign up, buy the currency and receive information on participating traders. Traders can also redeem their currency vouchers back to sterling in these places.

- Local currency vouchers will have a limited life of two years. After this replacement ones will be issued. After a further 12 months they can no longer be redeemed.

• New notes will be printed as required to fulfill demand but all notes in circulation will be backed by an equivalent amount of pounds sterling.

What about small change?

The notes will be in four denominations (£1, £5. £10, £20) and change will be available in the usual way from the distribution point. Where change of less than £1 is needed ordinary sterling pennies will be used.

Could the notes be forged?

The notes will be printed on special paper with many security features. Forgery is difficult and too expensive to make it worthwhile

What about the recession?

The recession means that we are all facing difficult economic times, but history teaches that when a community works together it can flourish even in the harshest conditions. The new local currency is one way that we can show our commitment to each other and to a secure and sustainable future.

Who will operate the scheme?

Stroud Currency Co-operative Ltd is an industrial provident society set up to run and administer the local currency. It will operate on behalf of its members as a viable not for profit enterprise and each member will have one vote.

The local currency has grown as an initiative of the Transition Stroud Lifestyles and Livelihoods Group

For further information visit www.stroudcurrency.org

According to the regional currency network www.regiogeld.de

a local currency serves the common good by:

• Committing consumers into buying locally, encouraging the development of local business and stimulating the local circulation of goods and services.

• Extending business opportunities in the local and regional market place and offering a tool for wider local development

• Increasing the sale of local products, enhancing business turnover and creating more jobs

Stroud Local Currency

Joining Form for Charities

Name: …...........................................................................................

Name of charity:................................................................................

Address: ….........................................................................................

…....................................................Post Code:..................................

Tel: ….............................................Fax..............................................

Email: …............................................................................................

Website: …................................................

Rules of engagement

• Stroud Currency Co-operative Ltd is an industrial provident society. Its objective is to stimulate the local economy and support local educational, social and cultural initiatives by creating and bringing into circulation a local medium of exchange (voucher currency) and raising awareness for and promoting a local sustainable economy in Stroud and the Five Valleys.

• Everyone purchasing the local currency must be a member of the co-op and support the realisation of these goals.

• The charity or not-for-profit organisation encourages its own members to use the local currency and gain support for its own cause. The more members a charity signs up, the more potential donations it receives.

• For every local currency unit purchased 3% of its value is allocated to a local charitable organisation.

• To ensure that a meaningful sum can be transferred at least 10 currency users must designate a given charity.

• Funds will be transferred to the charity on an annual basis subject to an administrative charge of £20. Payments will be made in local currency.

• Redemption of local currency units back into sterling is not possible. A charity can however also register as a trader.

• Each registered charity or not-for-profit organisation will be listed ion the regularly updated currency website and in a local catalogue published once a year.

I / we wish to join Stroud Currency Cooperative Ltd, accept these terms and conditions

and agree to pay a one off membership fee of £5.00

Name (capitals): …...................................................................................................

Signature: …......................................................... Date: …....... / …....... / ….......

This form should be returned to:

Stroud Currency Cooperative Ltd, The Exchange, Brickrow, Stroud

www.stroudcurrency.org