Funding and Finance for Community Centres and Hubs

(from donations, to grants, to contracts and social finance – and

planning!)

Funding - Individual donorsRaising money/time/support from the public through:

• Events, raffles, sponsored walks etc• Gift aid – made simpler/tax issues• On-line giving (local giving.com, crowdfunding)• Volunteering – (match funding schemes –

raising money/time/resources eg social action fund and community first)

Grants• Government grants eg. local council grants,

community chests, district housing, community first grants.

• Charitable trusts/foundations & community foundations – Garfield Weston, Sir George Martin Charitable Trust, Henry Smith Charitable Trust, Wade’s, Community Foundations, Coalfield Regeneration Trust

Grants – National Lottery• National lottery – Big Lottery Fund

- Reaching communities: £10K plus inc: £50K capital

- Buildings strand: £100K plus to improve or replace a building (deprived areas eligible – rural and urban)

- Awards for all: £10K. • Sport England, • Arts Council, • Heritage Lottery Fund

Grants

• Company giving – energy companies e.g (Northern Gas), Mars in the Community, B&Q, Co-operative community fund

• Landfill community funds (funds to provide/improve public amenities e.g community centres) – Biffa, Sita, Veolia, Wren, Green Leeds, Caird Bardon Community Programme, Groundwork Leeds (see www.entrust.org.uk for information on LCF)

Trading – earned income/loans• Increasing expectation that service users will pay towards

services (personalisation agenda)

• Contracts – to run public services (localism act – right to challenge, right to buy, local planning etc)

• Promotion of social enterprise activities (services for sale, café, leisure activities, feed-in tariff and renewable heat systems)

Trading - social investment finance

• Social investment finance (combining finance and social objectives, makes investment available to communities unable to access loans from mainstream banks)

• loans & support to help groups generate income for social benefits

• Often funders give a package of loans and grants

Benefits of loan finance

• Provide cash to make things happen now• You decide what you want to spend the money

on (will need approval)• Promotes business planning – encourages long

term planning• More flexible than high street banks, eg. often

no early repayment fee, payment breaks etc• Not competitive (compared to grants)

Benefits of loans

• Reduced bureacracy (compared to grants), once approved, payments are regular.

• Shariah compatible loans• May be delay in initial repayments to help you

build capacity• May be combined with grants & paid up front• Help you develop an asset, kick start a new

venture, take an opportunity, bridge a grant etc• Can fund capital and revenue

Loan finance providers

• Community development Finance Institutions (CDFI’s), specialist and VCS lenders

• Charity Bank, Key Fund (inc: Yorkshire Venture Philanthropy), Big Society Capital, Community Builders Fund, Venturesome (CAF), BIGinvest, Unity Trust Bank

• For providers search: CDFA Finance Funder Website (www.cdfa.org.uk)

Investment Ready?

• You will need the right legal structure – for liability issues (discuss with lender)

• Are the management committee on board• Can you repay?• Is this the best option?

What next?• Be clear about what you want to do and what will meet the needs

of your community (feasibility study) • Ensure you have community/local support

• Be aware of local strategies/legislation

• Check you have the capability, skill, legal status, commitment, professional support, permission

• Put together a funding strategy and action plan including comprehensive and realistic costings, plans for sustainability (business plan)