Is your community thinking of taking on land or a building? Here’s what to think about and some resources to help

If you’re thinking of taking on a community building or facility, check out this excellent short webinar from Good Finance. It’s called ‘How to build a cocktail of funding for your community group’, but it covers so much more than that, as we all know that funding is about much more than asking funders, donors or supporters for money!

Photo by Mike Erskine on Unsplash

This webinar covers the things you’ll need to think about before you start and has a useful overview of fundraising options from Locality, as well as an introduction to social investment from Good Finance. It also contains an excellent case study from Stretford Public Hall, whose members brought its community together to bring a disused public building back to life, and ran a successful community share offer to raise the finance needed. Take a look at the webinar below.

Here are the main things that I would take away from the webinar:

  1. Funding options (led by Debbie Lamb, from Locality)
  • Business planning is incredibly important. You’ll have to be clear about what the running costs will be and what will generate income, as well as having a good sense of the advantages and risks of running a community building.
  • Be dispassionate. Try to be realistic about how viable this is and don’t let your emotions lead you to take on something that has very slim chance of success.
  • Think about your organisational structure and the people you have. Does your structure help you to manage risk and liabilities? Does it allow you to borrow (if you plan to borrow)? Does it allow you to raise money through a community share offer (if you plan to do this)? Do you have the right amount of people with the necessary skills and expertise to work as a team?
  • You’re more likely to be raising money through a ‘patchwork’. It’s very unlikely that you will have just one source of income.

This all chimes with my experience of supporting nonprofits with community asset transfer and funding. The strength of the team and its planning is really crucial to success.

The one thing I’d add here is that evidence of community involvement and buy in is equally important. It’s one of the key things Dudley Council will take into account when making decisions on bids for community asset transfer and funders like the National Lottery Community Fund make community involvement a key criterion of all its programmes. You’ll need to be able to demonstrate that the community has been involved in the development of your plans and that the community wants your project to happen!

In terms of community asset transfer in Dudley borough, Dudley Council has made a ‘How to’ guide which tells you what they look for in a robust business case and I’ve made a template business plan which is based on this. What the local authority will look for can be boiled down into a few things:

  • Realistic costings, projections and sources of income: Do you know what condition the facility is in? Does any money need to be spent to bring the building back into use and if so, where is this money likely to come from? Do you already have some confirmed resources to put into it? What are the likely running costs?
  • Robust income-generation model / evidence of sustainability: What activities will bring in income? How realistic are these? Have you spoken to people who are willing to spend money here? What evidence do you have to show that your income will be able to cover running costs?
  • Benefits for the whole community: How will the community benefit? How will people be able to get involved? What positive difference will this make? How will your activities link to local and national strategies? If your building will be used for just one type of activity, it’s less likely to get support.
  • Evidence of community-involvement in the plan: How have members of the local community been able to have a say on what will happen at your facility? Can they be involved as members or will they be able to have a stake in your project?
Photo by Jens Behrmann on Unsplash

2. Social investment (Kieran Whiteside, Good Finance)

Social investment comes in many forms and, although it’s not particularly new, it’s constantly evolving. Not many of the organisations I’ve worked with have wanted to consider social investment, being put off by its repayable nature. In the current climate, though, I think groups should seriously consider it.

The starting point is to learn about what it is to find out about what type might suit you. And in this webinar, Kieran gives us a brief overview of what social investment is and what tools can help you to get started:

  • Social investment is repayable finance, where the investor looks for a social as well as a financial return on their investment. This means you need to be clear about what you need the money for, whether there’s an income stream that will help you to repay, and what social impact you will create (this is about ‘outcomes’ and I recommend the now archived ‘Getting funding and planning successful projects’ guide from National Lottery Community Fund back when it was known as the Big Lottery Fund).
  • The Good Finance website can help you to understand social investment. It has a diagnostic tool to help you to understand whether social investment is right for you and the type of social investment you should consider.
  • Community shares: This involves raising money from the community by issuing shares in the organisation through a formal community share offer. It’s a great way of demonstrating real community buy-in for a project, but only certain types of organisation can issue shares. The Community Shares Unit is a good source of information.
  • Blended finance: This type of social investment is typically a grant + a loan. It’s more common for investments of £250,000 or less.
  • Secured loans: Like a mortgage against an organisation’s asset. This means that the organisation needs to own a building / asset for use as collateral. Social banks, some high street banks and some specialist funders offer secure loans with typically lower interest rates.
  • Finally, crowdfunded investment: Different from rewards-based crowdfunding (Kickstarter, for instance), but more like peer-to-peer lending. You’ll find more information on Ethex or Community Chest

3. Case study of Stretford Public Hall, which ran a successful community share offer (Simon Borkin, Stretford Public Hall)

I was really inspired by the story Simon told of Stretford Public Hall and the power of a community coming together to make things happen!

Stretford Public Hall is a Grade II listed Victorian building that fell into disuse (for the second time) in 2014. In 2015 the Friends of Stretford Public Hall successfully used the Localism Act to get the building listed as an asset of community value. The group secured the freehold of the hall from Trafford Council which meant they could start refurbishment.

To raise money through a community share offer, the Friends of Stretford Public Hall had to set up as a community benefit society (or Ben Comm) so that the organisation could issue shares. This allowed members to invest in the organisation in return for shares, but the principle of the Ben Comm is that each member gets one vote, no matter how many shares they bought.

To set up a community share offer, the organisation had to draw up a business plan and a formal share offer document. Both of these are available on the Stretford Public Hall website, along with lots of other information about how the organisation is run.

What struck me most about this case study was the importance of engaging with the community and the real openness to involving the community in the organisation’s set up and decision-making. It really shows that the friends of Stretford Public Hall did the legwork to make sure the community was engaged and motivated, resulting in the organisation successfully raising £255,000 over 56 days from 790 people in the community and 7 organisations. It’s that kind of community involvement that decides whether a venture will succeed.

Photo by “My Life Through A Lens” on Unsplash

Great news from the brand new Priory Community Centre!

What a difference a year makes! Priory Community Centre now looks a far cry from the empty, not-quite-finished shell of a building I visited in June 2017. Now it’s vibrant, full of people of all ages doing all sorts of creative things together!

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It’s a journey that started long before I started working with the passionate group of people who make up Priory Community Association, a charity that’s been without a home since the North Priory estate in Dudley was flattened and redeveloped in 2010. Priory Community Association volunteers live and breathe their community; they continued to work in the community at other venues to make sure they stayed connected, they maintained links with other community centres for support while they were without a home and they provided a strong voice for what the new community centre should look and feel like.

Last year, I was asked to support Priory Community Association through the asset-transfer process, work that had been started by my former colleague Caroline, who’d worked closely with Dudley Council staff on its asset-transfer strategy. In basic terms, asset transfer is when building or land moves from statutory control into the control of not-for-profit organisations. In Dudley borough, this has in most cases been a transfer of management (through a lease) rather than transferring ownership from the local authority to another organisation. Asset transfer can be a lengthy process (with more work required the longer the lease is), so it’s good to approach it with realistic expectations. Generally, the process involves completing a short expression of interest and then working on a business plan that will show the community support for the transfer, what kinds of activities will happen there and how they will benefit the community and the financial viability. Understandably, the local authority will want to make sure that the transfer will benefit the community and that it is sustainable.

So this is the process we started with Priory Community Association. We got busy with the business plan and I think together we made a really strong case for the community benefits, linking not only with the Dudley Council plan but showing links to priorities of the Health and Wellbeing Board, West Midlands Police and Dudley Clinical Commissioning Group. We had some help and good feedback from Martin, who’s the principle link with the local authority for groups looking at asset transfer – he does an excellent job!

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What we all found more difficult was the financial figures. We were lucky enough to be able to get some figures from other community centres, but we weren’t sure how realistic they would be, given that Priory’s was a completely new building (and hopefully more energy efficient!). On top of that, while we were working on the plan, the completed building risked standing empty and Priory Community Association couldn’t give any certainty to potential users and hirers of the centre. So I asked Martin whether a temporary lease might be an option; this would allow Priory Community Association to get in the building and start managing it, giving them experience, building interest and providing a more realistic view of what the costs would be thus making their business plan more robust. At the same time, the building wouldn’t have to stand empty for too long and be at risk of deterioration.

Dudley Council was open to this, which was wonderful news! We thought ahead and it seemed that the timings might coincide with the summer holidays, so I suggested that Awards for All might be interested in funding a playscheme with a difference – one that would help to launch the brand new community centre and kickstart other activities that would happen there. Together we worked on the application – it was a good one! – and Priory Community Association landed a grant of around £5,000 from Awards for All. The group also successfully applied to Dudley Council’s Community Forums to help them furnish the kitchen and other areas of the centre, and their good relationships with other community centres in the borough meant they had lots of chairs and tables donated.

I recently went back to the centre on the last day of the playscheme to see how things had gone. I was utterly staggered by what this passionate group of people has achieved! They’ve made connections with children and families who’ve come to the playscheme and joined in the range of the activities on offer, connections that will last many years judging by the ‘Thank you’ cards on display and the wonderful comments Priory Community Centre has received on its Facebook page, which has been joyously charting each day of the playscheme. Honestly, if you want to brighten your day, take a look at the wonderful pictures and comments like the ones below:

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During my visit a group of children and adults descended on trustees and volunteers with flowers and chocolates to say thank you for the two weeks of fun they’d had. Of course, I had to get a snap!

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Leaders, people like Celia, Sally and Rachel, have also instilled the sense that the community centre is for absolutely anyone and everyone. The behaviours the leaders have shown and the language they’ve used have helped people feel a sense of ownership. Children have made posters encouraging everyone to tidy up after themselves and people feel like they can contribute to making activities happen. The fact that they had enough volunteers to cover a day trip of 59 people to Weston and keep activities going at the centre shows that people are willing to help and volunteers are valued there. This is great news for the future of the centre!

The people I spoke to had lovely things to say about the local PCSO’s too. They went to each day of the play scheme, getting involved in the activities, judging competitions, doing the less attractive jobs! It seems like the play scheme has been a great way to connect communities with each other and with the people that serve those communities, like the Police, who want to be visible and engaged there.

The future looks good. Throughout the last few months, Priory Community Association have been engaging with people and organisations that might want to use the centre. There’s an exciting plan in the pipeline with young people’s charity Top Church Training, which might see the Community Centre cafe opening regularly, and there’s been a lot of learning about what works from the play scheme – a regular families session might be on the cards!

Whatever the plans, I wish Priory Community Centre every success. The people involved make my job an utter privilege and we’ll always be happy to support them as they develop.

Lye & Wollescote Chapels Development

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Lye & Wollescote Chapels, Cemetery Road, Lye.

As many of you may be aware, Lye & Wollescote Chapels was the first building in Dudley borough to undergo the Asset Transfer journey. Since then there have been others and I am happy to report, more on the way and as and when they do happen, we will keep you posted.

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Our work gets recognised in high places!

Our work in partnership with the local authority to guide communities through the process of taking on, developing and managing buildings has been held up as an example to be replicated across the whole country in a national paper given to the CLG (Communities and Local Government) Select Committee earlier this week.

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A year of… Celebrating how we’ve supported the sector 2013-14

It’s a busy and exciting time here at Dudley CVS as we’re gearing up for our AGM and Volunteer Awards, which will be held on Thursday evening. Within all this preparation and planning, we’ve been working on a new style of annual report that celebrates what we’ve been doing to support our sector and the wonderful people within it and we’re so happy to share it now.

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Notes from our latest funding workshop: Developing your community facility

Dudley CVS has always worked to broker relationships between funders and the groups we support, through working with big and small funders on their programmes and helping to promote them, searching for funders for our groups and supporting them with applications and bringing funders together with groups at regular ‘meet the funder’ events.  But last week, we ran a ‘meet the funder’ event with a difference, focussing on a theme which is becoming ever more popular in Dudley – developing community facilities and asset transfer.

In this post, you’ll find details of the event and the presentations that funders and others gave.

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Lye & Wollescote Chapels – Dudley Asset Transfer & Development

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Community Assets are land or buildings predominantly owned by statutory services which are then transferred over and developed under the management of community organisations.  Asset based development assists 3rd sector organisations to achieve long-term sustainable social, economic and environmental achievements within their own locations.

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