Making Community Buildings Work for Us – Finance Debbie Lamb Locality

We believe that every community is a place of possibility. Locality - merger of bassac and the Development Trusts Association Nationwide network of settlements, development trusts, social action centres and community enterprises

Locality membership Over 560 members across the UK They reach over a quarter of the UK population A combined income of £400m Of which £200m is earned income £565 million community owned assets (DTA alone) 6,900 staff and 21,000 volunteers

Workshop Outline Managing Finance Business Planning Asset transfer and development Capital projects

Your Organisation Who manages a community building? Those managing a community building –Paid staff –Volunteers Your issues about finance ……..

Costs of running a building Staffing Insurance Phone and IT Utilities Marketing Security Admin Repairs Maintenance Sinking Fund Cleaning Professional fees Rates Loan repayments

Earning income Who uses your building? What do they pay? Other options to earn income? Does income exceed expenditure?

Options Room rental Membership fees Grants Long-term rental Anchor tenants Conferences Cafes Manufacture Training Contracts Services Retail Agriculture Housing

Earning Income Not all business ideas make money Key considerations: –Market – who are your customers? –What will they pay? –Does that exceed the cost? –How will you sell your service/product? –Who are your competitors?

Keeping the Books Budget Accounting for income and expenditure Keeping the Board up to date –current figures Dealing with problems Early warning guide

Sample Questions Phone calls chasing unpaid bills: –Daily, weekly, not often Understanding of financial figures: –Never, when explained, always Income at risk in next 12 months –Under 10%, 10%-50%, more than 50%

Business Plan Summary Organisation Activities Market Promotion Finance Risk Assessment

Asset Ownership Freehold or Long Lease Asset transfer –Definition –Opportunity? –Threat? Is it for your organisation?

Glendale Gateway Trust

Asset Ownership Skills within Board and staff Strong business plan –Finance Risk Assessment Clarity about outputs and outcomes Relationship building Realistic expectations

Resources To Have and to HoldTo Have and to Hold – practical toolkit Places for EveryonePlaces for Everyone – North East info Asset Transfer UnitAsset Transfer Unit – guides and case studies Early Warning Guide – coming soon

Locality ’11: Communities ambitious for change 1st & 2nd November 2011 – the Palace Hotel, Manchester Locality’s very first national convention will be the biggest event of its kind in the country – see locality.org.uk to find out more. Locality ’11 is the place to find out about the latest community sector issues, network with like-minded colleagues, listen to key speakers, join the debate, and learn more about Locality’s work in asset transfer, enterprise and social action.

web: tel: Locality, 33 Corsham Street, London NI 6DR Debbie Lamb