SFP Monthly Newsletter - Issue 67, December 2008/January 2009

Support and news from the Sustainable Funding Project

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Support and news from SFP

It’s been another enjoyable and challenging year for the Sustainable Funding Project. During 2008, over 1200 people attended our events across England and we were just shy of 140,000 visitors to our website.

Dealing with economic uncertainty – top tips to survive and thrive

The economy has hit the headlines time and again this year. Assets have taken a hit, with shares and property prices plummeting. High profile banking crises and tales of companies laying off workers have left many voluntary and community organisations feeling nervous about their future.

With bad news surrounding the sector, how can you make the best of the current situation?  The good news is that putting some work into key areas of your organisation now will reduce the risk of having your own economic crisis. Read our top 5 survive and thrive tips 

NCVO hosts summit on economic crisis

On 24 November, NCVO hosted a summit with sector leaders and government representatives to discuss the economic crisis and its impact on civil society. Read Stuart Etherington, CEO, NCVO and Kevin Brennan, Minister for the Third Sector’s joint statement  

Only Connect – final chance for 2008 - apply by 10 December

Only Connect is a visit scheme sponsored by Triodos Bank which enables you to visit another voluntary and community organisation (VCO) to learn about from their experiences.

We pay £150 for your time and travel to visit another organisation to learn how they have diversified their income through trading, public service delivery or by using loan finance. We will pay the host organisation £200 as a consultation fee for their time spent with you. 

Find out how to apply. If you don’t have a host in mind, why not view our list of suggested hosts.

Note: In 2009, the application deadline for Round 1 is Friday 13 March. 

New Case Study: The British Postal Museum

The British Postal Museum and Archive cares for the visual, physical and written records of over 400 years of postal heritage. Discover the challenges the museum has faced to stay on mission and reduce dependence on a key funder.

Download the case study (PDF 2168 KB)

Why not showcase your work like the British Postal Museum have? Contact SFP or telephone 0207 520 2519. 

Compact update

The current review of the Compact could have a major effect on your relationship with government. Over the past 3 months Compact Voice, which represents the voluntary and community sector on Compact issues, has consulted organisations across the country to find out what they think. To find out what we heard about the future of this agreement, visit the Compact Voice website.

Sustainable Funding + 1 = Collaborative Working

 The Collaborative Working Team promotes the opportunities offered by collaborative working and supports the sector to decide whether and how to work collaboratively. The Team does this by providing:

• information, advice and support;
• case studies of different types of collaboration;
• good practice tools and guidance material; and
• training and events.

The team can also refer you to specialist advisers and other sources of support. For more information about the team, please visit their homepage. 

“Collaborative working to generate income”  a new publication from the Collaborative Working Team and Sustainable Funding Project introduces different ways of working with other organisations to generate income. Subjects covered include fundraising events, joint trading, payroll giving through consortia, legacy giving and appeals. A series of case studies illustrate voluntary and community sector experience of joint fundraising activities.

Read online, order a free hard copy by email to collaborate@ncvo-vol.org.uk or call 020 7520 2440.

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SFP: Where are we?

Next year promises to be another busy and exciting time for SFP - discover what we have scheduled to date and learn more about our package of workshops.

Confirmed event dates for 2009 include:

3 March:  Transforming Together:
Innovation, public services and the voluntary sector
Public Service Delivery Network Annual Conference
information is available at
www.ncvo-vol.org.uk/psdnconf09 or contact us on
0207 520 3162, or psdnetwork@ncvo-vol.org.uk 
Note: early bird offer closes 22 December

17 June: Sustainable Funding Project Annual Gathering and 22 September: Financial Management Conference
More information about both events will be available early next year.

Planning and financial management

How diverse is your income?

There has been a lot of press this month about how charities with diversified income would be in a better position to weather the storm than those that had to rely upon narrow income bases. Some of the UK's biggest charities are drawing up contingency plans for a fall in income of up to 10% during the impending recession – read the full article.

Restricted funding can mean some voluntary and community organisations are putting themselves at unnecessary risk. Restricted income can make up the majority of money for many small charities, but it can't always cover something unexpected happening - read more.

Our income spectrum explains the different types of restricted and unrestricted income and the relationships involved. Download the income spectrum (PDF 474kb)

Why not use our toolkit to analyse your current income breakdown and assess whether a more diverse approach may benefit your organisation.
Download the toolkit (PDF 2.79Mb)

Charitable Incorporated Organisation – regulations out now for consultation

The long-awaited details for the Charitable Incorporated Organisation (CIO) have now been published for consultation by the Office of the Third Sector and Charity Commission. The CIO will be a new legal form created specifically to meet the needs of registered charities that wish to incorporate and benefit from the limited liability this provides. For more information about this form and to read our briefing, visit www.ncvo-vol.org.uk/charitylaw

What is the real cost?

This month, we have received a number of inquiries around understanding cost bases, demystifying overhead and direct costs and the benefits of implementing full cost recovery. Answers to these questions, and many more, can be found in our comprehensive financial management section  launched last month. Browse by the topic you are interested in.

Prefer a story? Read our case studies that demonstrate how implementing financial management systems are crucial to survive and know your full costs 

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Donations

NCVO Fundraising Conference 2008
Presentations available

It was great to meet some of you at the SFP workshop - the plenary presentations from the conference on fundraising strategy, successful application writing and how to become an award wining fundraiser are now available online.

Credit crunch sees increased demand for services

Charities are being squeezed by both an increase in demand for their services and increased costs, according to the Charity Commission, the independent charity regulator. A new survey shows that 4 in 10 charities (38%) have reported that they have been hit by the economic downturn of the last year.

1 in 5 charities (21%) surveyed that deliver services have seen an increase in demand for their services over the last 12 months. At the same time, more than half of all surveyed (54%) have reported that they had seen increased costs in things such as energy, food and travel, indicating the squeeze some charities are experiencing. Read more about the impact of the sector. 

Deal effectively with economic uncertainty:
read our top 5 survive and thrive tips 

Keep your supporters in the loop

In the current climate where consumers have less disposable income available, charities are facing the challenge of retaining existing supporters.

A number of articles discussed this issue - including how to maintain retention by revisiting the initial feelings which sparked involvement, reaffirming what charities are passionately committed to achieving and the importance of supporters to achieve the mission - read the full article

Third Sector magazine highlights the importance of keeping donors up to date and engaged, focussing on utilising new media to reach international development giving – read the full article.

Need some help with your fundraising strategy? Visit our funding pages for information, support and resources.

Gift Aid management system - lite version available

GiftEase Lite (a Gift Aid recording and claiming database) is available from 1 December at no charge – register your interest now.

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Grant Funding

Big Lottery Fund 'should be exclusive to the sector'

Community and voluntary organisations should be the only recipients of Big Lottery Fund money, charity umbrella groups have claimed. In a consultation about future funding launched this month, the BLF is asking whether it should extend its current commitment to give 60 to 70% of its money to the voluntary sector, which ends in 2012. Read more about the consultation and get involved and read NCVO’s response.

New guidelines for open grant scheme released

The Paul Hamlyn Foundation is an independent grant making body which funds organisations whose charitable activities help people to realise their potential and a better quality of life. The Foundation recently issued new guidelines for the Education and Learning Open Grants Scheme Programme, featuring three specific themes: supplementary education, tackling school exclusion and truancy, and developing speaking and listening skills for 11-19 year olds. 

This scheme supports innovative ways of increasing people's learning, funding the development, implementation and dissemination of new ideas to increase people’s education and learning. There are no closing dates – full details are available on their website. 

Grant funding 'safe in short term'

The economic downturn is unlikely to affect levels of grant funding in the short term as most foundations have laid out their spending strategies 2 to 3 years in advance, and should therefore be able to meet any agreed commitments - read the full article.

Awards for All England small grants scheme –
changes announced

The existing format of the scheme will change when it ends in March 2009. Currently, Awards for All England is a joint Lottery grants programme supported by Arts Council England, Big Lottery Fund, Heritage Lottery Fund and Sport England.

From 1 April 2009, each of these distributors will have their own small grants programmes up and running. Applications can still be made under the current arrangements until 31 March 2009. Read more about these changes. 

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Public Service Delivery

Provide feedback on potential products

Futurebuilders England is seeking feedback on three new products it is thinking about launching as part of its ongoing commitment to help develop market power in the third sector. The £215m investment fund is conducting an online survey to gather opinions about the potential new products – a Management Development Fund, a Quasi-Equity Fund and a Partnership Fund.

All 3 funds are intended to help develop the capacity of third sector organisations to compete for, win and deliver public sector contracts and were designed in response to the sector’s needs. To find out more and to complete the survey, visit Futurebuilders website.

Crisis fails to put off bids for contracts

The number of bidders for contracts to get the long-term unemployed off benefits and into work has held up well despite the credit crunch, rising unemployment and the prospect of recession.

Just 7 of the 31 organisationsthat had been short listed for fourteen “flexible new deal” contracts have dropped out of the bidding process, figures released by the Department for Work and Pensions on Monday show - read the full article. 

Sector wins fewer contracts for higher value

Third sector organisations have won fewer public service delivery contracts during the last quarter, but the value of those contracts has increased. The figures show that sector organisations funded by  Futurebuilders won 35 public service contracts, worth more than £8.2m between 1 July and 30 September, compared with 44 public service contracts worth in excess of £7.7m between 1 April and 30 June.

The total of 80 contracts won in the past 6 months exceeds the Government's target of 65 for the whole of 2008 - read the full article. 

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Trading and social enterprise

What is a social firm? Watch the film

A new short film called "Social Firms: successful businesses, empowering employment" seeks to explain and clarify what a social firm is. The 3 minute film was coordinated by Media Trust as part of the Volunteer Films scheme and is presented by Mark Durden-Smith from “I’m a Celebrity…”
Watch the video.

Innovation Exchange launches Next Practice Programme

Kevin Brennan, Minister for the Third Sector has launched the Innovation Exchange’s Next Practice Programme. The Programme will support and showcase the best in third sector innovation. Fourteen projects working across the issues of independent living and excluded young people will receive support packages that can include expert consultancy and a share of a £200k NESTA Innovation Exchange Fund – read more about the projects on the Innovation Exchange website.

Online survey for social enterprises

The Social Enterprise Coalition has launched an online survey to capture the challenges that social enterprises face with the current economic upheaval. This will be used to help make the case for social enterprise to government, banks and others - take part in the survey. 

Who are Rose Road Association?

The Rose Road Association was founded in 1952 by a small group of parents and provides quality services for children and young adults with profound and multiple disabilities. After a successful programme last year, 2009 offers a range of courses (open to everyone) which include CRB awareness, First Aid and bespoke training. Visit Rose Road's website for more information.

South-east support network announced

A new business support network for social enterprises in the south-east of England has been launched. The SE2 partnership will provide advice and support to social businesses throughout the region. For further information, contact Jason Mollring on 020 7566 1461 or visit the SE2 partnership online and join the mailing list.

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Loan finance and social investment

Brief Guide to Loan finance – get your free copy

This guide is for trustees considering loan finance and those of us who want to be better informed about the issues. It introduces the benefits, presents some factors that should be thought through and signposts to further information. 

Contact us to request a free hard copy or if you prefer, download the guide (pdf 175kb)

Bridges Ventures launch £4.25m fund

Bridges Ventures has launched the Bridges Social Entrepreneurs Fund, a new fund dedicated to investment in social enterprises, an initiative of the Bridges Charitable Trust which has so far raised £4.25 million.

The fund will invest in scalable social enterprises that deliver a high social impact and operate financially sustainable business models, investing up to £1m in each social enterprise, through hands-on, equity-like capital -learn more about the fund. 

Donation boosts Co-operative loan funds

The Co-operative Loan Fund, which supports social businesses, has received a £150,000 donation from the East of England Co-operative Society.

New and developing co-operatives across the UK are encouraged to contact the Loan Fund to discuss how it may be able to help – loans of up to £75,000 are available and personal guarantees are not required. For more information, call 01179 166 750 or visit
www.co-operativeloanfund.co.uk to download a loan application form.

Measuring Social Value

The Office of the Third Sector is supporting a new project on Social Return on Investment, Measuring Social Value, to be run by a consortium led by SROI UK (NCVO is a member). Aims include standardising the approach to using SROI, increasing accessibility for social investors and third sector organisations, and developing a network of practitioners - read more about the project. 

Contributions

If you would like to contribute to a future edition of the Sustainable Funding Project's Update newsletter, please contact us.  

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