ustainable Funding News

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1 S ustainable Funding News Autumn 2015 Yr Hydref 2015 Charity fundraising review: key points for the voluntary sector Concerns over alleged malpractice have put fundraising and its regulation in the spotlight. In response, the government asked Sir Stuart Etherington, chief executive of the National Council of Voluntary Organisations, to lead a review into the current self-regulation model. The review, which included members of the House of Lords from different political parties on the panel, consulted a range of voluntary sector organisations and leaders. Its report, published on 25th September, recommends that the main regulator, the FundRaising Standards Board (FRSB), is shut down and replaced with an organisation that works collaboratively with statutory bodies, such as the Charity Commission. Here is a breakdown of the report s recommendations: 1. A single, new fundraising regulator At present, there is a complex and confusing patchwork of regulators in the charity sector, according to the review. It recommends a new, single regulator, which reports regularly to parliament s public administration and constitutional affairs committee. The review concludes that while the FRSB has striven hard, it does not offer a credible form of regulation. To ensure public trust in charities, a new fundraising regulator should replace it. What would its responsibilities be? The new body would cover all fundraising organisations in the UK. It would be the owner and enforcer of the code of fundraising practice which currently sits with the Institute of Fundraising (IoF) and be able to proactively investigate breaches of standards (rather than wait for complaints from the public) and be responsible for convening all relevant bodies to ensure co-operation on fundraising issues. The review also proposes that the regulator uses stronger sanctions such as naming and shaming organisations or individuals, ordering compulsory training or suspending an organisation from a certain type of fundraising. All sanctions would be based on clear guidelines. The body will also be required to issue an annual complaints report, which should include an overview of the key reasons for complaints, an indication of the organisations most complained about and the outcome of adjudications. How would it be funded? It recommends that this body not be a membership organisation but instead be paid for by a levy on charities fundraising expenditure. The levy would apply to organisations spending 100,000 or more on fundraising each year and would be stepped so that those spending more would contribute more. (Continued on page 2)

2 2. A co-regulatory model The review recommends that fundraising regulation remains self-regulatory and be based on a three lines of defence model: First line of defence trustees are the first line of accountability for a charity s fundraising activities. It would be their responsibility to ensure fundraising was carried out in compliance with the law. Second line of defence if malpractice occurred, the fundraising regulator would have the power to intervene. Third line of defence the relevant statutory regulator ( for example, the Charity Commission) would act as the backstop in cases that raised regulatory concerns on issues that fell within its remit. To be effective, the review says the new body must have a strong relationship with statutory regulators, such as the Charity Commission, the Office of the Scottish Charity Regulator and the Charity Commission in Northern Ireland. The report says these organisations can act as a backup for the new fundraising regulator. For example, if evidence was found to suggest that a breach of fundraising practices was also a breach of trustee duties then the Charity Commission would need to be involved. The review recommends that statutory organisations highlight charities responsibility to support the regulator both financially and by complying with its rules. There should particularly be a strong relationship between the code of fundraising practice and guidance for trustees, such as the Charity Commission s CC20 in England and Wales. 3. Increased trustee responsibility The review suggests that charity leaders take more responsibility for fundraising activities. Trustees and senior managers must take primary responsibility and regularly review the organisation s compliance with the code of fundraising practice. When a charity is working with a professional agency to fundraise, trustees and chief executives should play a more active role in managing the relationship between the two. They should ensure that the agency adheres to the charity s values and ethos, has no negative impact on the charity s reputation or does not cause donors to feel they are being unduly pressured into giving. The review also recommends that trustees indicate in their annual report what the charity has done to protect vulnerable people and others from undue pressure in their fundraising. 4. One code of practice As well as suggesting that the code be overseen by the new body, rather than the Institute of Fundraising, the review recommends that the Public Fundraising Regulatory Association s (PFRA) rulebook be merged with the code and the FRSB s fundraising promise be abolished. The review recommends that the new regulator should assess the code of practice as a matter of urgency. 5. IoF and PFRA to merge The report says that throughout the review, there was evidence of greater collaboration between the IoF and the PFRA, and recommends the two organisations merge. The review says the IoF, as the professional association for fundraisers, should focus on good practice. As it no longer has responsibility for the code, the report says it is a significant opportunity for the institute to help organisations comply with the rules and rebuild public trust. The regulatory responsibilities of the PFRA should also transfer to the new fundraising regulator. 2 (Continued on page 3)

3 6. Emphasis on the donor experience and creation of a fundraising preference service Research found that members of the public were frustrated about the lack of control over whether or not they were approached for fundraising and the lack of transparency over how their details were acquired. With this in mind, the review recommends the creation of a fundraising preference service that allows individuals to opt out of charity appeals. Fundraisers should have a responsibility to check names against the list before sending out a campaign. A commission on donor experience The review supports the creation of a commission that aims to increase both funds raised and donor satisfaction by appealing to the feelings, thoughts and desires of donors, as well as by emphasising the needs of the charity. FRSB response to self-regulatory reviews The FundRaising Standards Board think that everyone in the sector agrees that the current self-regulatory system needs strengthening if we are to regain the trust of the public and Government. The feedback from their recent survey is now available. 86% of you agreed that all charities raising over 1m should be signed up to selfregulation. We have proposed that it should be mandatory for them to be subject to regulation by the FRSB, if the public are to have confidence in the system. 84% of you agreed that we should have stronger sanctions against those members that break the rules. We have proposed that we take a harder edged approach to enforcement. We have recommended that we gain the ability to refer charities to the statutory charity regulators in instances where we have been unable to drive adequate change in a charity s fundraising practices. 54% of you agreed that there should be higher membership fees for charities raising over 1m. We have proposed that in order for us to have adequate funding for the future we implement either a new sliding scale for fees or take a slice of GiftAid. We have also proposed that an independent Standards Committee must be created, with the majority being lay members, yet retaining representation from fundraisers. It must set all the rules for the industry and be housed outside the Institute of Fundraising. We must be able to require changes to the Code based on our findings from investigations into complaints from the public and our findings from independent research. Only 25% of you agreed that it should be given to an independent body to administer, with 38% of you being unsure. However, we cannot continue with a situation where the rules which govern fundraising are set only by fundraisers. This has led to the existing Code of Fundraising Practice being too weak and failing to outlaw practices which the public have quite clearly said they find unacceptable. The fact is that the IoF and its Code Committee has resisted many recommendations from the FRSB calling for changes to be made to toughen up the Code in recent years. 3

4 Big Lottery Fund workshop for environmental groups The Big Lottery Fund s People and Places programme funds environmental projects where they have an impact on communities and lives of people most in need. Intermediate Environment Funding Workshop 10th Floor Helmont House, Churchill Way, Cardiff 10:00am -13:00pm on Thursday, 8th October 2015 Does your environment project have an impact on people in need? Does your project need funding? If so, sign up to our workshop for environmental groups to maximise your chances of securing funding. The Big Lottery Fund Wales awards over 100,000 each day through a range of grant programmes which are open to the third sector. If you want to know what the fund looks for in an application, how to increase your chances of getting funding and how to increase the chances of succeeding with your project, then this class is for you. Aimed at the environment sector, you ll hear tips on what makes a successful project, tools that you can use in planning your project, monitoring and evaluation methods to evidence your impact and key pieces of information that funders want to know. By the end of the master class, participants will be able to: Understand and meet the expectations of funders Learn how to improve the quality of your funding bids Understand how forward planning can increase your chances of success Improve communication and relationships between funders and recipients Learn how to evaluate the impact of your project. This intermediate course is intended for the environment sector wanting to further develop their knowledge and skills to produce compelling funding bids. To book a place call or enquiries.wales@biglotteryfund.org.uk Triangle Trust 1949 Fund Open to Applications Applications are now being accepted from organisations working with the rehabilitation of offenders or ex-offenders. The Triangle Trust provides funding for charities, not-for-profit social enterprises and community interest companies in the UK that are working to support unpaid carers or working with the rehabilitation of offenders or ex-offenders. Each year, one round of Development Grants is held for organisations working with carers, and one round for organisations working with the rehabilitation of offenders or ex-offenders. Development Grants provide funds towards any costs incurred by the applicant in undertaking its core business so that sustainable income sources can be developed and the organisations income will not be reduced when the grant comes to an end. 4 (Continued on page 5)

5 Grants are available for up to 40,000 or 50% current annual income, whichever is lowest, per year for three years. The amount requested each year is expected to taper down as applicants develop other sustainable income streams. Registered charities, not-for-profit social enterprises and community interest companies that are working within the UK and have a UK office are eligible to apply. Organisations must have a constitution whose primary purpose is to support unpaid carers or the rehabilitation of offenders or ex-offenders. Applications are now being accepted from organisations working with the rehabilitation of offenders and ex-offenders with a deadline of 5 November 2015 (noon). For more information, visit: Big Lottery Fund s Heroes Return 2 Ends in 2015 The Heroes Return 2 funding programme is scheduled to end this year with the last date of travel by 31 December The Heroes Return 2 programme provides Lottery funding to help World War II veterans who saw active service and are resident in the UK or the Republic of Ireland to take part in commemorative visits (within the UK and overseas) to mark the anniversary of events that led to the end of WWII. The grants cover travel and accommodation expenses to enable veterans to make trips back to places across the world where they served. Funding is also available to take part in an official commemoration in the UK. Applicants can apply for a fixed amount grant of between 165 and 8,140, depending on the number of people taking part and the destination. Grants will cover the costs of commemorative visits. A fixed amount of money will be available for each veteran and spouse and/or carer towards the cost of their visit. This will cover travel costs, insurance and accommodation. Destinations are grouped into five zones: UK Northern and Western Europe Mediterranean and North Africa Egypt/Libya and Middle East Far East and Rest of World Veterans who fought with, or alongside, British Forces in World War II and who are resident in the UK, Channel Islands and the Republic of Ireland may apply. War widows and widowers of veterans are also eligible for funding, and carers and spouses can receive funding to travel with veterans. Applications will be prioritised according to date of travel so that those applications with early travel dates are dealt with first. Application forms should be submitted far enough in advance to allow for processing. More information is available from their website at: 5

6 Final 2015 Deadline Extended for Macmillan Supporting You to Help Others Grants Funding for both new and established cancer self help and support groups in the UK and their activities and user involvement projects and associated activities. The programme aims to provide people affected by cancer with opportunities to use their experiences to support others, while also receiving support themselves. Funding is available for the following: Start-up costs for new self help and support and user groups. Development funds to support the ongoing activities and development of self help and support projects for people affected by cancer. User involvement grants to encourage the involvement of people affected by cancer in the design and improvement of cancer services. Individual development grants to enable people affected by cancer to develop their skills and use their cancer experience to help support others affected by cancer. Applications that contribute to achieving Macmillan s Inclusion vision of a health and social care system where equal access to, and delivery of the best cancer services are available to everyone living with and beyond cancer are particularly welcome. Individuals or groups of people affected by cancer, and organisations and professionals working in partnership with people affected by cancer in the UK are eligible to apply. Grants can be for up to 500 for projects that have been running for less than 12 months and up to 3,000 for projects that have been in existence for more than 12 months. Grants for individual development are provided for the actual cost of the activity. The final 2015 deadline for applications is 30 October More information is available from: New application process for Sport Wales grants From 26 October 2015, the way you apply for a Sport Wales Community Chest and Development Grant will be changing. Applications will have to be made online, via the Sport Wales website, rather than using the existing paper/pdf based application forms. The new online process will, amongst others things, improve the applicant experience and allow Sport Wales to manage grant programmes more efficiently. Please regularly check the funding pages on the Sport Wales website: for the announcement of the Go Live date. 6

7 Millennium Stadium Charitable Trust Opens Local Applications Grants for local voluntary organisations in Wales in support of sport, the arts, the community and the environment. Grants of up to 2,500 are available for not-for-profit organisations in Wales that have a remit to serve their local community or town. Funding is available for projects in the following four areas: Sport The Trust is keen to support volunteer-based projects, particularly from ethnic minorities and people with disabilities. In addition, the Trust recognises the difference that coaching can make to the development of a sport and is keen to fund equipment and coaching costs if the need has been clearly identified. The Arts The Trust aims to give more people the opportunity to enjoy the diversity of performing and visual arts in Wales. The Trust particularly favours proposals which expand and improve arts provision in parts of the country less well served than others and will give priority to organisations which strive to work together to share experiences, practices and ideas. The Environment The Trust encourages applications relating to recycling, developing green spaces, the development and promotion of green practices and the promotion of public transport schemes. Projects that improve the quality of Wales' environment, protect and create a vibrant countryside, and develop and promote sustainable land use planning will be a priority for support. The Trust aims to fund programmes that protect and enhance Wales' natural heritage and promote its sustainable use and enjoyment in a way which contributes to local economic prosperity and social inclusion. The Community The Trust will give priority to organisations that are looking to tackle social, personal, economic or cultural barriers within their own communities. In particular, projects that lead to greater independence and give people more control over their lives will be given priority. The Trust welcomes applications that give people a voice to express their needs and hopes. The Trust is keen to help disabled people to challenge barriers and to be active and visible in their local communities. The deadline for applications is 30 November 2015 (12 noon). More information is available at: 7

8 Information summary for Rural Community Development Fund (RCDF) Welsh Government grant scheme, however projects need to show how they meet the aims of the Vale of Glamorgan Local Action Group s Local Development Strategy. Total Grant Fund available has been suggested to be 69.9Million from This budget will be spilt across open calls through to This may be topped up with other funds. First Open call now open, details below: Scheme Indicative allocation - 6m Expected maximum number of full applications Window opens - 20th July 2015 Window closes - 31st January 2016 Full applications invited from - 30th April 2016 Deadline for submission of full applications - 31st October 2016 Not confirmed, but suggested there will be an open call every 6 months from June Intervention rate is 80% grant 20% match. Maximum project is 128,000 grant towards a total project value of 160,000. Grant is for Capital only, however there is scope to include some revenue costs towards a capital build such as feasibility, planning fees etc. Only open to Rural Wards in the Vale of Glamorgan therefore not available in Barry, Penarth or Llandough. The 3 objectives for RCDF are as follows: 1. Promote social inclusion, poverty reduction, and economic development in rural areas. 2. Help those most deprived in rural Wales and those that have limited scope to change their circumstances. 3. Develop the resilience and capability of rural communities so that they are better able to cope with and adapt to change. Projects that can be funded include: Support for drawing up development plans and protection and management plans Support for investments in the creation, improvement or expansion of all types of small scale infrastructure, including investments in renewable energy and energy saving Support for broadband infrastructure, including its creation, improvement and expansion, passive broadband infrastructure and provision of access to broadband and public e- government Support for investments in the setting-up, improvement or expansion of local basic services for the rural population including leisure and culture, and the related infrastructure Support for investments for public use in recreational infrastructure, tourist information and small scale tourism infrastructure Support for studies and investments for maintenance, restoration and upgrading of cultural and natural heritage Support for investments targeting the relocation of activities and conversion of buildings or other facilities located inside or close to rural settlements, with a view to improving the quality of life or increasing the environmental performance of the settlement The RCDF is open to applications from the following beneficiaries: 8

9 Local Action Groups Local community groups (including charities and trusts, co-operatives) Social enterprises Companies Ltd. by Guarantee Community Interest Companies Mutuals Local Authorities Welsh Government Private companies - only sole traders and SMEs are eligible to only apply for investments in relocation of activities for environmental / quality of life reason. For full guidance notes and expression of interest application form please see: gov.wales/ topics/environmentcountryside/farmingandcountryside/cap/ruraldevelopment/ wales-rural-development-programme /rural-communitydevelopment-fund/?lang=en For the Local Development Strategy to show how your project fits within its aims and objectives, please see link at the bottom of the following website: news/2015/09/information-summary-for-rural-community-development-fund Big Lottery Fund s People and Places (Wales) Change to Criteria The Big Lottery Fund is making two changes to the criteria of its People and Places Fund and will issue revised application forms and guidance notes. The People and Places programme funds capital and revenue projects that encourage coordinated action by people who want to make their communities better places to live. Public sector as well as voluntary, community and social enterprise (VCSE) organisations can apply for three levels of grants ( 5, ,000; 250, ,000; 500,001-1 million) to support local and regional projects throughout Wales that focus on: Revitalising communities. Improving community relationships. Enhancing local environments, community services and buildings. Starting from 5 October 2015, the following changes will be made the programme's eligibility: Projects will be able to apply for up to five years (instead of three years) funding. Projects above 500,000 will no longer need to provide evidence that they are innovative in design. All other programme eligibility will remain the same. Revised application forms and guidance notes will be available on the Big Lottery Fund website on 5 October Applications can be made at any time. For more information please view: regioncode=-wal&progstatus=open&country=%20% 20Wales&status=theProg&chan=funding&title=People%20and%20Places 9

10 Eight things for charities to consider when borrowing money From market research to security and contribution, preparation is key when it comes to securing a loan for your charity. Borrowing can be an effective way to finance future plans for many charities and social enterprises, giving you the freedom to focus on your organisation s mission. To get started it helps to understand how lenders think, so you can approach them equipped with the right information. Here are the eight key things you need to consider. Is your charity ready for finance? To be considered for finance, you will need to demonstrate to lenders that you ve reached the point of growth that warrants seeking outside investment to achieve your business goals. If you decide that loan finance is appropriate, don t wait until you urgently need it because the average loan application takes between three and six months. Do expect to be asked the following: How much money do you need? How do you intend to repay the loan and over what time period? What form of security can you provide? Consider what assets might be used. Sell the expertise of your team Lenders will evaluate whether your charity has the appropriate experience to manage the project. We recently worked with a church, Christian Life Ministries (CLM) to refinance the loan that enabled them to build a new property to accommodate a larger congregation. The property also enabled them to diversify their income by offering banqueting and conferencing facilities within their new building. When approaching us, the charity was able to demonstrate a clear understanding of where their in-house experience was sufficient and where they needed to engage with third party specialists. This was evident in employing an experienced and reputable firm of architects to oversee the property build. Be clear on your reason for funds A common mistake charities make is not being able to explain clearly why they need funds. So what should you do first? Before you approach prospective lenders with initial proposals, you need to know: What stage your business is at. Are you a start-up, growing, established, or are you succession planning? Why you need the finance: do you need finance for working capital, to buy equipment, to buy land, property or to expand and grow? How you will spend the finance: have a business plan ready so lenders can see how a cash injection will be spent and how it will benefit your charity. For a free business plan template, visit Your cash flow projections: these should be provided for the next 12 to 24 months to demonstrate you can meet interest and loan repayments (you will also need to include a loan repayment figure in your projections) 10

11 Demonstrate how are you going to repay your loan Lenders are concerned with affordability. They need to know how you will pay their finance back and that you can afford it, without it having a detrimental impact on your organisation. Will the repayment funds come from activity already being generated, from the project that s being funded or a future project? Typically banks will ask for: Audited accounts from the last three years Cash flow forecasts for the next 12 to 24 months Up-to-date management accounts A business plan Copies of your current business bank statements to analyse if the financial information provided demonstrates your charity s ability to repay the loan Be conservative with your projections. Can you answer the what-if scenario? For example, what will you do if there are unforeseen costs or not as much demand for a new service as you expected? You will be expected to provide numbers that take this into account. Have you also considered external factors such as Bank of England base rate (interest rate) rises? This is not an exhaustive list, so you need to make sure you have considered all the factors. Do your market research If you want approval for a new project, lenders will expect to see detailed market research for the business benefits your project could have. We recently helped Howletts Wild Animal Trust, who initially invested in overnight camping a few years ago. Howletts realised there was a much bigger market for glamping (or luxury camping) holidays and wanted a bank loan so they wouldn t have to rely on grants, donations or existing reserves to complete the project. The loan enabled them to provide 13 tents and become a bigger player in the UK glamping holiday market. Bob O Connor of The Howletts Wild Animal Trust said once we had the decision and written our business plan, we needed access to funds quickly. We were very passionate about our proposal and with a bank loan from CAF, we have been able to turn this into a success story. What security are you offering? Consider the question of security carefully and present a clear message to the lender. There are costs involved with the placement of security such as valuation fees and legal costs. What contribution are you offering? A lender will expect a contribution towards the project work. For some property deals, the pledging of additional existing land and buildings can often be taken as the contribution rather than cash. When are you expected to pay back your loan? Repayment terms can be flexible, but often they will be determined by the financial projections in your business plan, therefore it s your responsibility to ensure its realistic and sensible. Lenders will also have parameters to which they tend to work with and will often be able to guide you as to an appropriate repayment term. Dave Brown, Client Relationship Manager at CAF Bank 11

12 Grow Wild funding to help communities bloom Organisations and community groups across Wales are being invited to apply for funding of 1,000 to 4,000 from Grow Wild to create inspiring spaces. Supported by the Big Lottery Fund and led by Royal Botanic Gardens Kew, Grow Wild motivates communities, friends, neighbours and individuals to come together to transform local spaces by sowing, growing and enjoying UK native wild flowers. Over the next year, Grow Wild has more than 200,000 to award to not-for-profit groups who put forward creative ideas that revamp communal spaces. Grow Wild is looking for projects that use native wild flowers and plants innovatively to bring colour and wildlife to their local area. They should offer volunteering opportunities to young people aged and also to over 25s. Projects should also think creatively about sharing stories, photos and activities from their spaces. Over , Grow Wild has built a network of over 150 projects including: the reimagining of a train station entrance; an interactive tour of planted spaces; a sensory garden for people with disabilities; as well as projects involving streetscapes, woodlands, housing estates and murals. Applications for 2016 funding must be received by 1 December A panel of experts will then help decide who will receive funding. Successful groups will be notified in February 2016 ready to start their project in March and finish by October If your group has an inspiring idea to connect people to nature, then apply before 1 December 2015 for your chance to join our lively network. First, please read the community project application guidelines for 2016 funding at: Funding Information Service PLEASE NOTE: GVS Funding Information Service is a service to GVS members and potential members - voluntary and community organisations based in, or serving, the Vale of Glamorgan. Information in this supplement or information on request from GVS officers, is tailored to the needs of these organisations. If reproducing any of this information for voluntary organisations in another area, please do not refer them to GVS as we regret that we will be unable to help them. We are also unable to help individuals seeking personal funding. Don t forget all of our funding information is available on our website and is regularly updated (at least once a week and usually more!). 12