LinkAble Update on our Financial Situation for Service Users and Families May 2016

Agenda Where does our money come from? What do we spend money on? What has changed recently? What does this mean for us? What actions are we taking to balance the books? How will this impact service users? Please can you help us?

Where has our money come from? We have three main sources of income 1.Fees paid by users 2.Funding from local councils Subsidising services we provide for Children Subsidising services we provide for Adults 3.Fundraising from a variety of sources Applying for grants from Charitable Trusts and Foundations e.g. The Big Lottery Fund Events and sponsorship eg Fundraising Ball, SkyDive, Marathon, Bikeathon, Quiz Nights Donations from individuals, schools, local organisations eg Hoe Bridge School, Hoe Bridge Golf Club, Hampton Court Palace, ATG

What do we spend money on? Our main cost is staff Running sessions for users -Group leaders Staff to plan and organise sessions and to satisfy compliance and safety requirements -Service Managers Staff to run the charity -Managing Director, HR, Finance We also have to spend money on Resources and equipment for sessions Staff training Utilities – electricity, gas, water Building and minibus maintenance Insurance Special events eg Awards Evening

What has changed recently? In January we were notified that we would no longer receive funding of £45,000 for our Adult Services from 1 st April 2016 This is part of wider cuts the public sector are making Due to the late notice of this we requested and agreed a funding extension until 30 th June 2017 (an additional £11,000 for the 2016/17 year only).

What does this mean for LinkAble? When the Trustees came to set a budget for 2016/17 we were faced with a significant shortfall in our funding for Adult services If we did nothing we would have to fundraise double the amount we have been able to in previous years just to balance our books We did not believe we could realistically and responsibly plan on the basis that we could achieve this level of fundraising We would probably have had to use a significant proportion of our reserves to cover the funding shortfall and while we could do this for one year, if it continued into a second year we would use up all our reserves and become insolvent (bankrupt!) and we would have to cease all services We had known we were going to be facing a difficult year anyway and the removal of this grant has pushed this to an even more critical point and required more substantial actions

What is our plan? After much discussion we have produced a budget plan based on 4 key elements 1.Reduce overhead costs by £60,000 (12%) 2.We will increase our fundraising efforts and aim to raise more than before, £103,500 this year – which is an amount we believe is achievable 3.We will need to increase fees to Adult users from August We will use some of our reserves – likely to be around £10,000

Pricing Factors We have looked carefully at pricing and compared our prices to other similar organisations We found our Adult prices were actually well below these organisations We have also recognised that different Groups offer different types of service which provide different levels of value So we have set up price bands to offer a range of pricing and choice for Adult users

Price Model New pricing Band Group Current price per session Price per session Price per hour ASocial GroupsWoking+£5£15 £5 per hour SHMOU£5£15 Chill Out Wednesday£5£13 MOP£5£15 Surrey Heath +£5£15 Friday Sports£5£10 B More structured, outcome focussed groups High Notes£6£10 £ £10 per hour ActAbles Adv£5£15 ActAbles Int£5£15 CDaytime provisionHoliday scheme£16£30 DOne off’s Ski-Trip £550 Fixed for FY16/17 Mayhem £5 Weekend breaks£180£300

Not an easy time We know this price increase will be a challenge for our service users and their families This wasn’t an easy decision for us and we went through lots of discussion about it It seems to us to be the best compromise that we can find at this time We believe our pricing is still good value for what we provide compared to other organisations If anyone will have serious problems with this then please talk to us

We’d like to ask for your help We’ve explained how important fundraising is for us – see targets on next slides People are more inspired to support a charity when there is a personal connection for them Could you please think about helping us in some way? Please ask if your friends, families, colleagues could support us

Proposed fundraising plan and how you can help

Any questions?