Issue 59 Winter 2012
Growing Local Enterprises
The newsle er for voluntary organisa ons and community groups in Rhondda Cynon Taf
Social Enterprise Interlink News
Welcome ..... to the Winter edi on of Interlink’s Newsle er. If you would like to contribute to the next issue please send your ar cles, informa on, job vacancies or adver sements by: 1 March 2013 to Cara Jordan-Evans at Interlink by E-mail: cjordan-evans@interlinkrct.org.uk
If you require any ar cles translated into Welsh or any other format please get in touch.
In this issue we have: Social Enterprise
2
Development and Enterprise Team
3
Funding and Support
4-5
South East Wales Community Development Grant/ Market Research
6-8
Governance
9-11
Energy in the Community
12-13
Loan Finance
14
Crowd Funding
15
Training
16
Our address: 6 Melin Corrwg, Cardiff Road Upper Boat, Pontypridd CF37 5BE Telephone number: 01443 846200 Fax: 01443 844843 E-mail: info@interlinkrct.org.uk Website: www.interlinkrct.org.uk
The Enterprise Edi on There is a great deal of pressure on community and voluntary groups to become more enterprising and generate income. With the poten al increase in risk, with new ac vi es and new legal structures, many people feel; especially volunteer commi ees and trustees out of their comfort zone. So enterprise is not for everyone, and yet most of the organisa ons Interlink works with on a daily basis can be considered social enterprises. Being a social enterprise is about being both socially driven and enterprising. Despite what some people may think, this has always driven the community and voluntary sector. As the levels of public funding are cut, most organisa ons have to look at reducing how much they spend. But if you want to do new things and respond to the growing needs of our communi es (unemployment, welfare reform, spending cuts, rising bills . . .) income can be secured not only to survive but to thrive. There are tradi onal sources that are underused, such as the Lo ery, charitable trusts and local fundraising ac vi es. We must make much be er use of these not ignore them, too many organisa ons ask for money without doing anything to raise money themselves, and that makes it much harder to get grants and win tenders. But alongside this, we need to look at new ways to generate money, and these include (you can see examples in this edi on): •
Selling things or trading - this varies from baking cakes to selling wedding dresses, where there’s a will there’s a way
•
Crowd Funding or using a form of social networking to raise funds
•
Ge ng local businesses to donate money, materials and me through ‘corporate social responsibility’
•
Selling energy
We also need to understand that to run our organisa ons as best we can, good governance needs to be delivered by well-informed commi ees and trustees, who know what is going on in their organisa ons, who make sure staff are performing well and who scru nise the organisa ons finances. The Development and Enterprise Team here at Interlink are here to help you do just that. Each of us bring a set of skills and experience gained from suppor ng community groups and organisa ons. When we add this to your skills and knowledge, we find anything is possible! So whether you need help and advice with funding bids, running your organisa on, planning something new or help with policies such as equali es and environmental management, give us a call.
Office opening mes are: Monday - Thursday: 9.00am - 5.00pm Friday: 9.00am - 4.30pm
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For more informa on and support contact the Development and Enterprise Team on 01443 846200.
Development and Enterprise Team
Development and Enterprise Team Who are we?
Date for your Diary Mental Health Forum 5 February 2013 10.00am - 12.00pm Contact Maria Abson
Joanna Markham Development Officer (Informa on and Support)
Meriel Gough Social Enterprise Development Officer
Phil Barre Organisa onal Development Officer
Ken Moon Enterprising Communi es Officer
Social Enterprise Support from Interlink The vast majority of social enterprises are new and exis ng chari es and voluntary sector orgnanisa ons looking to be more enterprising. Interlink supports all community and voluntary organisa ons, who together make up the voluntary or third sector. Many organisa ons are looking to trade goods or services, apply for compe ve tenders and reduce their reliance on grant funding and Interlink is here to help with this.
Areas of support include: • • • • • • • • • • • •
Understanding social enterprise and trading Genera ng addi onal income through trading ac vity Understanding different legal structures for Social Enterprise Developing feasibility studies and business plans Tendering for contracts Seeking funding and other sources of finance Effec vely managing your business Bespoke training for trustees, staff and volunteers Improving project monitoring and evalua on Improving building and resource management Equality monitoring Working collabora vely with others
Merry Christmas Everyone at Interlink would like to wish all their members a Merry Christmas and a Happy New Year!
For more ‘dates for your diary’ check out the ‘What’s On’ sec on on our website www.interlinkrct.org.uk
Local News Social Enterprise Forum Members Win Awards Rhondda Housing Associa on and Greenstream (previously known as Cleanstream) Carpets have been recognised for their excellent work at the Chartered Ins tute of Housing Awards last week. Rhondda Housing Associa on secured the ‘Ac on For Change’ Empowering and Involving Communi es award for their Advocacy project whilst Greenstream Carpets came away with the Innova on of the Year award (for their partnership work with RHA) and also won the ‘People’s Choice award.’ www.cih.co.uk/welshhousingawards-shortlist2012
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Funding and Support Joanna Markham, Development Officer, Joanna’s post supports small voluntary organisa ons in Rhondda Cynon Taf looking and applying for funding. Joanna can support groups comple ng fundingg applica ons through her exper se of managing and assessing fundingg applica ons applica l for funders. Interlink is lucky to have Gran inder which is an online database which searches for relevant funders for specific projects. Many groups access this resource at Interlink, if you haven’t; please give me a call on 01443 846200.
Interlink Small Grant Scheme Interlink has a small capital grant scheme. So far this year we have awarded £53,000 for a variey of projects including Meithrin and community projects.
Interlink receives the money from the Welsh Government’s Community Facility and Ac vi es Programme. Llantwit Fardre Under 16’s RFC met with Joanna to complete a funding applica on and received £1,205 towards their sports kit from our grants scheme.
For further th informa i f on about b t thi this scheme h please visit www.interlinkrct.org.uk or contact Joanna Markham on 01443 846200 or E-mail: jmarkham@interlinkrct.org.uk.
U lising Funding to Support Enterprise Growth at toogoodtowaste Funding to build a new extension at Ynyshir for toogoodtowaste had already been secured from the Big Lo ery Fund and Welsh Government but it did not cover dealing with the contaminated land. Amgen Environmental Body supported the applica on through the Landfill Communi es Fund, that resolved this problem. Plans to improve a community building were put at risk when the land was found to be contaminated with industrial spoils from previous mining in the area. Amgen Environmental Body Ltd came to the rescue of toogoodtowaste, our local re-use/ recycling charity and social enterprise opera ng in Rhondda Cynon Taf, by providing £43,522 to deal with contamina on and build the founda on for the new extension.
When Alun Maddox, Secretary at Aberdare based Amgen Environmental Body Ltd first visited toogoodtowaste at Ynyshir, he was disappointed with the lack of facili es for volunteers. ‘These people are offering to help out the community for no monetary reward, they deserve be er’ said Alun. Chief Execu ve Officer Lynda Davies said: ‘Our volunteers play a vital role in our success, the extension is desperately needed to support them. This funding has enabled us to deal with the unexpected problem of the contaminated land and we are extremely grateful to Amgen for their help. With the con nued support of our volunteers, we remain open for business, despite the building works.’
Alun Maddox visited toogoodtowaste upon comple on of phase one, ‘this funding has provided the organisa on with a good founda on to provide increased facili es for volunteers and the community, I look forward to seeing the completed extension.’ Lynda Davies with Alun Maddox and staff and volunteers at toogoodtowaste.
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Funding and Support Wri ng Funding Applica ons - An Introduc
on for Community Projects
Ge ng Started
Wri en Proposals
Read the funding body’s literature carefully to ensure that your organisa on is eligible to apply and that your project falls under their funding priori es. Before you put pen to paper give them a call to discuss your project and seek their thoughts on whether you should submit an applica on.
Some funders do not provide applica on forms. If so ask the funder what informa on they would like to see in the proposal submi ed. A standard proposal would cover the following: • •
When you’re ready to put pen to paper…
• •
…Read the guidance …Read it again …Dra your applica on …Read it again
•
Follow instruc on carefully. It is important to make sure that your project or organisa on does not become funder led. However whilst keeping that in mind don’t just focus on what you want but remember to match your aspira ons to their needs and their funding priori es.
• • •
Introduc on: who you are and what you do? Assessment of Need: why you feel it’s important you do this project? Project Outline: what do you want to do? Project Implementa on: how are you going to do it? Budget: how much money you’d like and what you would spend it on? Outcome: what will be achieved by the project? Evalua on: who will monitor and evaluate the project? Management: who will manage the project? What experience do they have? How the local community will be involved in the management and/or development of the project?
Applica on Form Many funders provide an applica on form. Even those who do not offer an electronic version of the form are o en happy for you to type your answers – check with them in advance. Remember to answer the ques on asked not the ques on you wish you had been asked – and answer all ques ons. Any informa on you feel would assist your applica on that has not been covered in the applica on form could be submi ed on a separate sheet.
Tips
Suppor ng le ers from your community may assist your applica on. For example you may wish to seek wri en support for the project from members of the community partner organisa ons, local councillors or MPs.
• •
If you’re uncertain about the funder’s requirements, or what a ques on means, ask the funder. They will be happy to assist and you are more likely to be successful if you answer ques ons fully.
•
• • •
•
Assume that the funder has no prior knowledge of your project or the local area. What is obvious to you may not be obvious to the person assessing your applica on. Don’t use acronyms. Ask Interlink or someone to read a dra version of the applica on and offer their advice. Be clear and concise. Don’t waffle. Use bullet points, answer the ques on asked. Think about presenta on. Is it easy to read? Include a covering le er and if appropriate page numbers and a contents page. Remember to keep a photocopy of the final applica on.
For more infoma on about help with funding or to use Gran inder contact Joanna Markham at Interlink on 01443 846200 or E-mail: jmarkham@interlinkrct.org.uk. Page 5
South East Wales Community Economic Development Grant Meriel Gough, Social Enterprise Development Officer. Focus is on the South East Wales Community Economic Development Grant; this role helps community and social enterprises prepare their Business Plan, Proposal and Applica on form for RCTCBC to consider id funding. f di Meriel also encourages groups to work in partnership to develop social enterprise opportuni es to provide services, facili es and products.
South East Wales Community Economic Development Grant (SEWCED)
What can it fund? Eligible projects must meet one or more of the following themes: • • • • • • •
This Programme is a flexible grant scheme which support projects opera ng from December 2010 to March 2015, and is available in Rhondda Cynon Taf.
•
The purpose of the Programme is to build sustainable and vibrant communi es through the development of community economic ac vity and social enterprises.
•
Community groups, chari es and social enterprises which are able to demonstrate that their project will benefit communi es in Rhondda Cynon Taf, can apply for financial support.
Support development of services to benefit the community and local economy. Opportuni es for acquiring new skills and learning. Promote sustainable development. Demonstrate partnerships / cross boundary projects. Ac vi es that develop and improve local economies. Provision and improvement of community assets and services. Promo on and provision of schemes to tackle barriers to employment. Schemes aimed at addressing the social, economic, cultural, physical and environmental needs of each area. Purchase of property, refurbishment of buildings or new builds.
Grants can be for revenue, capital or a mixture of both. You can apply for a mix of capital and revenue. Grants available: Capital – up to £50,000 without match - Revenue up to £67,000, reducing each year; demand has been high for this element!
For more informa on contact Meriel Gough at Interlink on 01443 846200 or E-mail: mgough@interlinkrct.org.uk
Market Research To access the South East Wales Community Economic Development Grant, Groups/Social Enterprises must, in most instances, complete a business plan to ensure the business idea is feasible and Market Research is the tool that illustrates this. Market Research Defini on: ‘The process of gathering, analysing and interpre ng informa on about a market, about a product or service to be offered for sale in that market, and about the past, present and poten al customers for the product or service; research into the characteris cs, spending habits, loca on and needs of your business target market, the industry as a whole, and the par cular compe tors you face.’
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I cannot overstate the importance of Market Research - par cularly for Social Enterprise Development. O en there is a social need but: •
Who will buy from your business?
•
How do you know your product/service is needed by others?
•
How will money be made to meet the social need?
•
Will the people who buy your product or service pay for it?
•
Will payment be from another organisa on (E.g. Local Authority) who pays you to meet a local need on their behalf?
Market Research You need to be absolutely certain that you: Know who your customers are AND that you know their needs.
Think outside the box here too, a local café will be your compe tor but will the sandwich delivery service servicing local businesses? To iden fy your compe tors try and think like a customer, where would they buy their products and services? Ask your customers who they currently or are likely to buy their products and services from. There will always be compe on but it is how you manage it that counts.
Es ma ng the size of your market Know your market k t •
• • • •
Think big, extend and explore: how can your product/service be adapted to reach a wider audience? What can you offer as an outreach service? What local events can you tap into to reach different audiences? Don’t underes mate the value of the Internet (Social Networking, Website) Join Membership organisa ons to increase your audience.
You need to find out about your market – carry out research by reading reports- inves gate though the internet, local libraries, contacts and The Regional Centre Service. Once you have started to accumulate informa on think crea vely about where else you will find out about your market. You will need to think like a detec ve and persevere! Once you have inves gated your market you need to realis cally consider what you can achieve.
You have your social need and have worked out where the need for your business will come from and where you will posi on yourself, you now need to work out where the money will come from to pay for your product or service. This is market demand and you need to look at a number of op ons/markets/ sectors to promote and sell your product or service. Obviously there will be a lot of inspired guess work to es mate your poten al market size, but this could give you some idea of what your business could become. Maybe you could plan your business growth into phases and reach different markets in each phase as you develop and adapt your product or service.
Research for the future A Business Plan should be a working document and therefore is never finished. Market Research is the tool that keeps your Business Plan alive and keeps focus on the future of the business! However for your ini al inves ga ons, to inform your Business Plan’s Market Research you will need to say at some stage ‘Enough is enough!’ and analyse your findings! Remember there is no greater source of informa on than that of your customers and poten al customers for informing Market Research once your business is up and running.
Customers ers Once you have researched your chosen market you will need to focus on your customers. Is there research out there which will tell you about your customers? The Local Authori es and Government informa on will be useful.
Compe
on
Think about your compe on. Think clearly about what market you are in, check out the compe tors!
There is no subs tute for listening to the people who you want to serve: •
The average business spends 6 mes more to a ract new customers, than it does to keep old ones. • Yet customer loyalty is in most cases worth 10 mes the price of a single purchase. I am happy to help! Contact Meriel Gough to provide you with a training course on Market Research that is fun and interac ve. Page 7
South East Wales Community Economic Development Grant
Cra of Hearts and SEWCED - the story so far! Earlier this year I met with Meriel Gough, Social Enterprise Development Officer at Interlink to discuss plans to join a Ceredd a Cawl as part of Interlink’s Adult Learners Week ac vi es. A erwards we discussed poten al projects and I men oned that it had always been my dream to have a cra shop where I could also help people learn and flourish. Meriel asked how, why, where and I explained that there is a great need for a shop in the Valleys offering quality cra ing materials, equipment and workshops at reasonable prices for cra ers of ages, types and abili es. I told her that there is no facility like this within RCT! Meriel told me that there was funding out there for this type of project!!!!! Two days later we went on our planned walk and Meriel told me that she had met with the RCTCBC Co-ordinators of the SEWCED Grant and that they liked my idea and I needed to complete a project Proposal Form and Business Plan. Five months, many mee ngs and lots of blood sweat and tears later the final copy of the Proposal and Business Plan was submi ed. I have been supported by Interlink (Meriel Gough), Business in Focus
(Jayesh Parmar) and encouraged by RCTCBC (Meurig Brookes) to undertake the necessary steps, which include the ini al interest discussions, Business Plan, Proposal Form comple on, decisions from the SEWCED Board and the Grant Applica on process including financial projec ons, engagement with volunteers, Directors, customers and the Incorpora on of the business. I have had fantas c feedback for this Social Enterprise, Cra of Hearts Ltd, from all concerned and am looking forward to the day when I have the final go ahead and can book the opening event.... I know that we will have to work very hard to ensure that this enterprise lasts well into the future and offers the kind of service that all of our customers and volunteers want and deserve. I also know that my dream would not have gone this far without the fantas c support I have had and can’t wait to file an update in the next issue of the LINK and invite you all to the shop opening event. If you would like more informa on about this enterprise please do not hesitate to contact Jo Roe on 07917467103. I look forward to hearing from you!
Aberdare Rugby Club - The New Community Hub! Aberdare Rugby Club are presently comple ng their SEWCED Applica on form to refurbish the Club for community use. Once successful with funding the Club will be able to adver se and hire out the club premises for a range of social ac vi es including mee ngs, weddings and conferences and provide training for staff from statutory and voluntary organisa ons. Create a mul -purpose community rugby venue which will increase and generate ac vi es that extend and promote the full use of this large historic building on behalf of the community. The Clubs décor will display a mixture of local rugby development and the town’s history making it an invi ng and a rac ve venue to a end. ‘Obtaining a funding grant can be a problem. There is an endless stream of guideline documents to follow and ques ons. If you have never had the experience my advice would be find yourself a Social Enterprise Development officer. They have a wealth of knowledge, experience and understanding. They make your troubled life easier as you face the unknown. They have tackled such things before and built up a confidence that is priceless to a layman.’ John Wrangham, Aberdare Rugby Club. Page 8
Governance GG
Governance Phil Barre , Organisa onal Development Officer, one of two Enterprising Communi es posts at Interlink, which are funded by the European Regional Development Fund (ERDF). Phil’s post provides one to one and collec ve support to individuals who are developing organisa saa ons ons and and d to exis ng and new organisa ons. Support offered includes governance (generic) and support towards financial sustainability.
What does governance mean? For those who run voluntary and community organisa ons it is the governing (government) of them. In other words it is all about running an organisa on properly. One writer on governance has defined governance as being: ‘the systems and processes concerned with ensuring the overall direc on, effec veness, supervision and accountability of an organisa on’ 1 - From The Governance of Voluntary Organisa ons, Comforth 2003
Governance is being in control and taking overall responsibility for the work and ac ons of an organisa on.
Ge ng it together The most common form for a voluntary organisa on is a membership based one. A well formed group will have a management commi ee with a minimum of three people aged 18 and over who are elected every year by the membership. The people elected to serve on the management commi ee are individually and collec vely responsible and liable for what the organisa on does. There will be a bank or building society account in the name of the organisa on and a well wri en acceptable governing document o en called a cons tu on.
Organisa onal legal structures The most common legal structure for the voluntary sector is the ‘unincorporated associa on,’ where there is no corporate body and therefore the trustees are individually liable. Many organisa ons become ‘incorporated,’ to protect the trustees. The most common incorporated structures are: • • • •
Companies Limited by Guarantee Industrial and Provident Socie es Community Interest Companies (CIC) and long awaited, and now expected in the new year, Charitable Incorporated Organisa ons (CIO).
Star ng at the beginning It is very important that voluntary organisa ons large and small are well managed. Regardless of their size they are responsible for all the ac vi es they carry out including all the monies they receive and spend. If the organisa on / group employ staff those who form the governing body are the employer. The star ng point is to recognise that it is very easy indeed to set up a voluntary organisa on/community group, it only requires 3 or more adult people to agree a purpose, which is of community benefit/ public benefit and will very o en, but not always, be charitable. The people who govern the organisa on do not normally receive payment for their services, apart from out of pocket expenses and the organisa on is independent and self-governing.
Visit www.interlinkrct.org.uk/informa onsheets.html to view these informa on sheets
Liability Liability means being held legally responsible for ac ons taken and for ac ons not taken or errors and omissions. However, it is important to keep liability in proper perspec ve because generally it only becomes an issue if the organisa on/group is negligent, breaks the law, cannot pay what it owes or faces uninsured losses. Bearing in mind there are thousands of voluntary organisa ons and very few get into difficulty and the likelihood of individuals facing personal liability is few and far between. However, poor governance can and does expose organisa ons and individuals to poten al risk.
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Governance Governing documents
Charity status
The governing document is what it says; it governs the organisa on/group. The powers and responsibili es are contained in the ‘governing document’. It is the rules that set out two key factors: why the organisa on exists, in other words what it is there to do and how it does it.
A charity is a voluntary organisa on set up to be ‘wholly and exclusively charitable.’ A registered charity is one accepted onto the Charity Commission’s register of chari es and given a charity number. There are two key requirements to be registered as a charity, these are: an annual income of £5,000 or more and what the organisa on does must meet one or more of what are now (since 2006) 13 charitable purposes. Public benefit has to be ed into the charitable purpose/s.
Unincorporated associa ons, are voluntary groups that are not companies. They have a cons tu on as their governing document unless they are a charitable trust, which has a Deed of Trust or a Declara on of Trust. Most voluntary sector companies have, as their governing document, a memorandum and ar cles of associa on. Some voluntary groups do not have a cons tu on but it is important to remember when this is the case that verbal agreements and rules that are followed but not wri en down can s ll be regarded as binding. It is good prac ce that all groups have wri en rules; this is part of good governance. Organisa ons / groups wan ng to apply for funding need a governing document as do those wan ng to apply to register as a charity or a company. Governing documents need to be properly drawn up, containing the necessary sec ons and ones that aren’t may cause problems and confusion amongst their members.
There are model governing documents available, for example the Charity Commission provides models for small chari es, larger chari es and charitable companies. Some na onal chari es also provide model cons tu ons for their member organisa ons.
Why be a company (incorporated)? If your organisa on does not employ staff, does not own or lease property, does not take on legally binding contracts or agreements, does not have valuable assets, then generally speaking there is no need to become a company - incorporated. If your organisa on or group does, then serious considera on should be given to incorpora on. The most widely used company structure for voluntary organisa ons is the Company Limited by Guarantee. Page 10
What is not always known is that there are small chari es who are not normally on the Commission register and because of that do not have a Charity Commission number. Their income is below, very o en well below, the £5,000 requirement to register. The complica on about recognising chari es is that the common percep on amongst members of the public and maybe some funders, is that chari es are only those registered with the Charity Commission and which have a charity number, which is not the case.
The Essen al Trustee What you need to know
Policies and procedures The governing document is a policy. Policies and procedures go together and define what an organisa on does and how it does it. Clear workable policies are at the heart of the well run, well managed stable organisa on. Policy areas will include: equal opportuni es, health and safety, child protec on/ safeguarding, vulnerable adults and policies around organisa onal financial control. O en policies are not complete because many do not have the necessary procedure, which is there to tell the organisa on how to implement the policy.
Governance Who is in charge – The Governing Body? The members of the governing body have overall resposibili ty for mee ng an organisa on’s legal du es and ensuring it is properly managed, regardless of the size of the organisa on. Whatever tle the governing body has, whether it is: the management commi ee, the commi ee, the trustees, the directors, the execu ve, or the board, it all comes down to their overall responsibility; they are the people in charge. These people should understand their role and responsibili es both individually and collec vely. The governing body is that part of the organisa on with formal powers and responsibili es. If things go wrong it is the governing body that will be called to account. The governing body is there to account for what the organisa on does and how it does it; ‘the buck stops’ with them; this is governance. New governing body members should be given the necessary informa on, guidance and support (induc on) they require to fulfil their posi on.
When staff are employed does this make a difference to who is in control? Governance and management are not the same, and this is where some organisa ons get into difficulty over governance because they are closely related, especially where staff are employed to manage the organisa on. For smaller organisa ons without any staff the governing body members will very o en be doing both, probably because they have to roll up their sleeves and get on with it all! So for organisa ons without staff and without a pool of skilled commi ed volunteers they have li le or no choice. When staff are involved, normally the day to day ac vi es of the organisa on are carried out by them, the very reason they are employed. As smaller organisa ons grow and take on staff the governing body members should focus on the role of governance and let the staff get on with their jobs. Management is about organising the work and doing the work, not about running the organisa on; that is governance.
Legal Advice Interlink staff are not legally trained nor legally qualified but we do have experience and knowledge on the subject of governance.
Sources of reference: • • • • •
1 - From The Governance of Voluntary Organisa ons, Comforth 2003 Good Governance A Code for the Voluntary and Community Sector, Na onal Council for Voluntary Organisa ons (NCVO) ‘Just about Managing’ and ‘Voluntary but not Amateur’ publica ons - London Voluntary Service Council. ‘The Voluntary Sector Legal handbook’ Directory of Social Change. The Wheel (Support and Representa on for Community and Voluntary Organia ons) - Defining Governance.
If you need any support on ma ers concerning governance contact Phil Barre on 01443 846200 or E-mail: pbarre @interlinkrct.org.uk.
Penderyn Community Centre The village of Penderyn is the most northerly community in Rhondda Cynon Taf and is in the very rural Brecon Beacons Na onal Park. The community centre, which was improved and extended some years ago thanks to a Lo ery grant, is located next to the new primary school and across the road from the Penderyn Welsh Whisky Works. The trustees of the community centre are commi ed, with on-going support from Phil Barre at Interlink, to running and developing the building to its full poten al for the benefit of all the residents of the village and surrounding areas.
Tracy Sweetland-Hodges the centres secretary said, ‘Good governance is uppermost in our ac vi es and plans for the future.’
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Energy in the Community Ken Moon, the other Enterprising Communi es Officer. Ken has a background in managing an emerging Social Enterprise and suppor ng community groups across South East Wales. Ken’s workk complements Phil’s by focusing on suppor ng individuals and the moree trading orientated organisa ons with governance, business planning, energy efficiency, income genera on, funding and loan finance.
Community Buildings and Micro Hydro Opportuni es in RCT Crisis, what Crisis? At the 5 July Interlink ‘Energy in the Community’ event, Professor Calvin Jones of Cardiff Business School told delegates from over a hundred community groups and partner organisa ons that energy costs will double by 2020. This is already happening with energy prices rising at an increasing rate over the last 18 months and further rises announced in the last few weeks. When you add what is happening in the local economy and cuts in public spending, then many communi es are finding it difficult, and in par cular for those groups who own community buildings. It can be a vicious circle, with groups some mes having to turn the hea ng off, which leads to less people wan ng to use the building; they generate less income and need to make further savings. So how can community groups in Rhondda Cynon Taf respond to this?
Energy Efficiency in Community Buildings Community organisa ons can apply for small grants to take prac cal ac on, such as insula ng lo spaces and replacing draughty windows and doors, which is fine in the short term. However, it is also important to take a step back and not only consider how the building is used now, but how it will be used in the future. This involves looking at what the poten al of the building is, who will be likely to use it, and undertaking those measures which ensure that the diverse range of community buildings in Rhondda Cynon Taf con nue to operate well into the future. Page 12
The good news is that funders are star ng to focus on these issues and are now developing support programmes which include community buildings. Most recently in RCT this has included: •
Funding from the Coalfields Regenera on Trust ‘Greener Communi es’ programme; and
•
Feasibility studies and surveys being carried out by students through the Project Shop within the University of Glamorgan.
Interlink is also working with other funders to support several community groups to look at how they use their buildings and look at how improving their energy efficiency can help them with their future plans. Finally, The Big Lo ery is currently developing new programmes which include community buildings and Interlink has taken part in discussions to help ensure that community groups benefit most. If you have a community building and would like to discuss any of these issues please contact Joanna Markham or Ken Moon. The emerging energy crisis can also offer opportun es to earn income from renewable energy genera on both within community buildings and within the wider landscape.
Developing Community Micro-Hydro Schemes in RCT As Rhondda Cynon Taf benefits from fairly consistent rainfall and steep valley sides, community hydro is something many groups are considering. Last Autumn Interlink received several requests to help develop hydro opportuni es on water courses in RCT and was able to secure funding to do this. These schemes are now progressing steadily. This funding also enabled Interlink to commission The Green Valleys to iden fy the 30 most promising micro hydro sites across RCT which could generate the most income for local groups, and had the greatest chance of success. Chris Blake, the Green Valleys, held a workshop about these opportuni es at the ‘Energy in the Community’ event.
Energy in the Community Interlink has secured further funding from Hay on Earth Welsh Government and Environment Wales and is in the process of securing addi onal funding to carry out feasibility studies on these sites and establish agreements with landowners to develop the sites with the most poten al. This work will hopefully be completed in spring and we will then organise workshops invi ng community groups from across RCT to discuss how they would like to be involved. Further informa on on Interlink’s work on energy efficiency in community buildings and developing micro hydro opportuni es can be found in the Interlink report ‘Energy in the Community: Generate RCT’. Interlink will be running a series of events focusing on community buildings and micro hydro in the new year, see below for details.
If you would like to know more please contact Ken Moon at Interlink on 01443 846200 or E-mail: kmoon@interlinkrct.org.uk
The Energy in Your Community events that will be taking place in 2013. These events will be similar to the Energy in the Community event held in July, but on a lower scale and community based. They will cover clusters in Rhondda, Cynon and Taf. 28/29 January 26/27 Febuary 19/20 March
Rhondda Taf Cynon
Treherbet Treforest Aberdare
Cynon Valley Trading on Energy Efficiency Cynon Valley Crime Preven on Associa on is 25 years old in 2012 and we have a lot to celebrate! In our twenty fi h year we are proud to have recruited five new Trustees. These individuals come from project delivery, financial and commercial backgrounds and understand the rewards and challenges for working in the sector. Together with the exis ng Directors and the new Chief Execu ve the organisa on is developing a new strategy and encouraging entrepreneurship amongst staff to develop new ideas. Our trading arm Cynon Valley Crime Reduc on Services is going through a period of real change. Since losing a major contract fi ng lo insula on 12 months ago, the organisa on has been figh ng to source new work. Recently, rela onships have been built with Carillion and Home Hea ng Solu ons.
As a result the organisa on has recruited new staff and got new appren ces who have been funded through Jobs Growth Wales on six month contracts. We now fit lo insula on and cavity wall insula on through the Bri sh Gas Nest project, and the Government’s Cert scheme. With the introduc on of the new Green Deal programme there is lots of opportunity for CVCRS to grow and prosper further over the next twelve months. We have a growth plan that includes training staff to new delivery standards, inves ng in new equipment and cars, and increasing the areas in which we operate. As an organisa on we are ge ng increasingly involved in community ac vity especially in rela on to the environment. For example, the Chief Execu ve is involved in the Renew Wales project as organised by DTA Wales.
For more informa on contact the organisa on on 01685 870011. Page 13
Loan Finance Is Loan Finance Right For You? Loans can and do benefit third sector organisa ons in many different ways but are they appropriate for your organisa on? The availability and accessibility of loan finance to the third sector has increased considerably in recent years and there are a growing number of organisa ons that funders out there are keen to help, to back social enterprise development in Wales. A loan is a financial transac on in which an agreed sum of money is borrowed with the expecta on of total repayment, o en with addi onal interest payments. While loans are not a replacement for grants, they can help organisa ons move away from grant dependency by suppor ng the development of new income genera ng ac vi es. Before considering applying for a loan, organisa ons should be at a stage where thorough business and financial planning has demonstrated the organisa on’s ability to generate sufficient income to meet loan repayments. As Alun Jones at WCVA’s Community Investment Fund programme states, ‘when considering a loan the first ques on should be, are grants available for what you want to do? It is infinitely preferable not to have to pay it back. Loans are far more flexible and there are very few restric ons on the uses to which funds can be put. Terms can generally be moulded to meet your needs and the door is always open – you’ve not got to wait another six months before the applica on window opens!’ Informa on sheets on loan finance are available on the Interlink website www.interlinkrct.org.uk/funding or contact one of the Development Officers at Interlink on 01443 846200.
If the alterna ve is a long period of fund raising, the loan op on might mean you can do something more quickly and take full advantage of the opportunity before you, rather than wait un l you have all the money and possibly miss the moment. Loans aren’t for everybody; unless you are already genera ng a sustainable income stream over the longer term or embarking on a project with that in mind, then loan finance is probably not appropriate. However as Alun states; ‘Loan finance will be an integral part of the future of the sector, allowing it to become far more self sustaining. There will always be a place for grants, but the availability of loan finance allows more projects to happen more quickly than would otherwise be the case. It is also the funding pot that keeps giving – as repayments are made, the pot is renewed and becomes available to lend again. From a government perspec ve far more bang for your buck than a ‘use once’ grant scheme.’ If you consider loan finance for your enterprise project or simply want to know more, contact one of the Development Officers or talk direct to three of Wales’ main third sector loan funders : Charity Bank Unity Trust Bank Communi es Investment Fund
Mark White Jon Field Ma Brown
07766735118 029 20 644422 029 2043 5766
Funding for enterprise support is provided by the EU ERDF programme. Interlink works closely with the following organisa ons to provide you with the most appropriate advice and guidance: Rhondda Cynon Taf County Borough Council www.rhondda-cynon-taff.gov.uk Wales Co-opera ve Centre www.walescoopera ve.org
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Coalfields Regenera on Trust www.coalfields-regen.org.uk
Business in Focus www.businessinfocus.co.uk
Time Banking Wales www. mebankingwales.org
Crowd Funding Spotlight on: Crowd funding Crowd funding is an extension of tradi onal fundraising from lots of individuals into the digital age. It is a modern form of fundraising of grants or loans from individuals, allowing you to use social media and on-line technology to access a wide base of poten al supporters. It allows you to ‘sell’ your ideas to the wider world, bringing a lot of people together to make big things happen. A good local example is Glyncoch Regenera on Partnership who secured £28,021 of individual dona ons, through the Spacehive fundraising pla orm for their £792,021 community centre re-building project.
What are the benefits of Crowd Funding? • • • • •
Improves awareness of your organisa on. Provides a new way to fund specific projects. Generate a following of dedicated supporters for your community. Provide significant amounts of clean match funding. Highlight your project to poten al funders.
Crowd funding is not a magic solu on to all your funding issues and should only be viewed as part of your wider fundraising strategy for specific projects. For example Glyncoch only raised 3.54 % of their overall project costs through crowd funding. The fact that they had already raised the majority of their funds meant that poten al donors could see that their dona on would help to make a real difference ‘for the price of a sandwich’. It also took a great deal of me and energy in promo ng the project online and in local media, especially as individual dona ons dried up. But poten al funders, e.g. Tesco Charity Trust, took note of the organisa ons on-line profile and stepped forward with considerable dona ons.
There are numerous crowd funding websites available, some of which are tailored to specific sectors e.g. the arts or community energy. But they all operate on the same basic principle in that they allow you to pitch your idea to people who have money and want to give or invest in worthwhile causes. The key is making the best possible pitch, to a ract enough supporters to allow you to achieve your goals. In order to a ract supporters you can offer rewards of varying size that correspond to dona on amounts. For example people looking to raise money to launch a restaurant, could offer a discount voucher to people who pledge smaller amounts, up to a free meal for those who donate larger amounts. Crowd funding is not just for social enterprises, anyone can pitch an idea, but social enterprises can have a unique advantage in appealing to poten al investors. For more informa on contact Ken Moon at Interlink on 01443 846200 or E-mail: kmoon@interlinkrct.org.uk
If done badly, crowd funding can cause reputa onal damage, especially on social media where any disgruntled donors will happily facebook and tweet their thoughts and feelings about your poorly run organisa on. A good pitch needs careful planning and a lot of work to ensure it has the best chance of being successful. There are a number of established sites already out there and more start up all the me. Given the crea ve industries love of digital media it should come as no surprise that the crea ve industries have been at the forefront of online fundraising but this has more recently spread to other support other social ac vi es such as helping someone buy a new bike. No, really! www.kickstarter.com www.crowdcube.com www.crowdfunder.co.uk www.spacehive.com www.sponsume.com www.peoplefund.it Page 15
Broaden your horizons ..... with Interlink training All courses held at Interlink unless otherwise stated. For more informa on call 01443 846200 or visit www.interlinkrct.org.uk to download a training programme and booking form.
Safeguarding Children and Young People
Counselling Session 11 December 2012 9.30am - 4.00pm
Community Development Level 2
5 February 2013 2.00pm - 5.00pm
Domes c Abuse Raising Awareness
6, 13 and 20 January 2013 9.30am - 4.00pm
12 February 2013 9.30am - 12.30pm
Wri ng a Press Release
Reaching your Market
15 January 2013 9.30am - 12.30pm
Introduc on to Volunteering 16 January 2013 9.30am - 13.30pm at Voluntary Ac on Methyr Tydfil
Preparing for Volunteers 17 January 2013 9.30am - 12.30pm at Voluntary Ac on Merthyr Tydfil
Par cipa on: Policy Prac ce 24 January 2013 10.00am - 1.00pm
14 February 2013 9.30am - 12.30pm
Reduc on of Suicide and Self-Harm in Children and Young People - Level 2 21 February 2013 9.30am - 12.30pm
Ge ng the Best for your Volunteers 20 and 21 February 2013 9.30am - 4.30pm at Voluntary Ac on Merthyr
Behaviour Change and Communica on Skills
Volunteer Recruitment, Selec on and Induc on 30 and 31 January 2013 (two day course) 9.30am - 4.30pm
Safeguarding Vulnerable Adults
12 March 2013 9.30am - 12.30pm
Introduc on to Computer Skills 13 March 2013 9.30am - 12.30pm
5 February 2013 9.30am - 1.00pm
Manager Versus Board: Defining the Role of Directors & Trustees Workshop
Check out our training programme on our website for even more courses!
20 March 2013 9.30am - 12.30pm
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Next Issue: April 2013