1.Traditional Rotating Fund
Communities all around the world use rotating funds. Rotating funds often enable group members to save for amounts that can be hard to manage on their own; they can create a sense of security and a positive outlook towards the future, good saving habits, and stronger connections between the group members.
How it works: every week or month everyone in the group contributes to the common fund and every week or month one person takes the whole pot. This continues until everyone has received the whole amount once. The allocation of the pot is decided by lottery or negotiation, for example if someone in the group needs money suddenly, they may ask to have their turn first.
In some variations, members can pay in double, triple or multiples of the regular amount, sometimes called "hands". For example, if there is a monthly group with 12 "hands" total, each person will receive once for every hand they put in. Someone paying in 4 "hands" worth every month will receive 4 times in the year and someone putting in 1 hand per month will receive once in the year.
2.Traditional Accumulating Fund
Accumulating funds are also common all over the world. They often enable group members to save for evel larger amounts or for communities to buy something together. For example, you may be working with your neighbours, friends or family to purchase something together or to support a common cause. Kin groups can be a way for you to manage contributions and keep track of your goal. Think of putting a new roof on the community centre or putting solar panels on the local car park or starting your own coop but getting started on kin before you incorporate.
How it works: everyone in the group contributes to the common fund. It can be every day, week or month, it can be the same amount for all the members or different amounts depending on what you are building the funds up for together. The group decides together how the money will be used; whether it is for the members to request individually or to reach a goal to make a common purchase.
Variations include solidarity or hardship funds, which members pay into when times are good on the basis that they can call on it when they need.
3.Food Cooperative
Food cooperatives are a great way to make savings and to build community locally. Kin Cooperative is working with Cooperation Town to support neighbourhood food cooperatives across the UK.
How it works: members pay a weekly amount (often around £5) and every month one member requests the money to pay for the food purchase. The food is delivered and divided among the members. If there is money left over, this can build up towards a bigger order later on or a community party.
Got ideas?
There are thousands of reasons to engage in financial mutual aid. You can also use a kin group for more than one thing at the same time because kin allows you to track how much everyone in your group has contributed and received.
If you want to discuss an idea with us, WhatsApp Kin (faster) or contact Kin. We're always excited to work with you!