1. Business development through capacity building
Harriet Stranks – Director of Grant Making, North & Wales
@harrietstranks
@lbfew
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2. Our Model: More than just a Grant-Maker
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3. Government has cut funding and directed it to larger charities
Changes in income from local and central government
Change in income (% change) 2008/09 to 2012/13
Changes in income from grants and contracts
Smaller charities experience more ‘churn’ than larger organisations, who are more resilient to external change.
Whilst individual charities are weathering the storm and even finding opportunities in the new environment, the overall picture is one where small and medium- sized charities are losing out in comparison to larger organisations.
Small and medium-sized charities have employed a diverse set of strategies to cope with funding changes.

4. Small and Medium sized charities – Why they matter.
Local knowledge & understanding – rooted/embedded in their communities
Boosting local social capital – building/nurturing networks (from not to the community)
Working with complex needs – foster trust & person-centred
Innovation in service delivery – responsive & adaptive, not one-size fits all
services delivered locally by small and medium-sized charities need to be part of society’s wider plan to address disadvantage. Why?
Because they’re the services that are often created in response to problems local people face.
Trusted by communities and run by individuals who work for their community day in, day out, they have the expertise to provide tailored support to the people that need it, for as long as it takes for them to live independent and stable lives.
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5. 4 Strategic Priorities; 3 Cross-Cutting Objectives
Championing Small & Medium-Sized Charities
Improving responses to Domestic & Sexual abuse, strengthening the sectors, reducing abuse at source
Tackling Financial Exclusion
Demonstrating new models – Homeshare programme
And…
Building the evidence base: evaluation & research
Raising our voice, increasing our profile
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6. New Programmes launched April 2014
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7. A Focus on Multiple Disadvantage & Measuring Impact

8. Relationship based grant making
Louise Telford NE and Cumbria
Michele Lester NW/Yorks
Yvonne Taylor NW/Yorks
Gary Beharrell East Midlands
Peter Cunnison
West Midlands
Jude Stevens
East /London
Mike Lewis Wales
Emma Beeston West Of England
Emma Tregear South East/London
Sara Cooney
South Central/London
Clare Rance
South West
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9. INVEST programme
Up to 25k for up to 6 years
Will support core or project costs
Must meet focus on multiple
disadvantage and transition
Must meet at least one of the Transition Outcomes and at least one of the Progression Outcomes
Must have systems in place to monitor outcomes
Must be able to evidence need

10. INVEST programme outcomes
Examples of Transition Outcomes
Examples of progression outcomes
Safe, independent and able
to make positive choices
Improved safety
Becoming employed
Improved physical health
Have not re-offended (in the
previous 6 months)
Improved mental health
Achieved accredited
qualification
Reduced isolation/increased
support networks
Progressed into or re-entered
education or training
Improved employability
Safely managing addictions
Reduced substance
misuse/addictive behaviour
Progression into safe and
suitable accommodation
Managing a tenancy and
accommodation
Point of slide: for audience to find out if the work they do fits the Invest programme outcomes
Key message: Must be able to evidence the difference they make. If they don’t have appropriate systems in place, we may be able to provide support through our enhance programme.
Notes: EXPLAIN – SLIDE DOESN’T INCLUDE ALL OUTCOMES - REFER TO GUIDELINES FOR THE FULL LIST
Transition Outcomes:
Safe, independent and able to make positive choices
Becoming employed
Becoming a regular volunteer (more than 20 hours in a 6 month period)
Have not re-offended (in the previous 6 months)
Achieved accredited qualifications
Progressed into or re-entered education or training
Achieved increased basic skills
Progression into safe and suitable accommodation
Progression into independent living
Safely managing addictions
Better able to manage their mental health issues
PROGRESSION OUTCOMES
Improved safety
Improved self esteem/confidence
Improved physical health
Improved mental health
Reduced isolation/increased support networks
Improved employability
Reduced stress/anxiety
Improved budgeting/money management skills
Managing a tenancy and accommodation
Reduced substance misuse/addictive behaviour
Improved basic skills
Improved living skills
Highlight and talk through a couple of the Outcomes. Explain the difference between the Transition outcome and the Progression Outcomes:
Transition outcomes – These are the end outcomes – ( could be referred to as hard outcomes) - that evidence a specific achievement or goal e.g. someone starting work or training or moving into a suitable place for them to live
Progression outcomes – these are the things that need to be achieved to meet the transition outcomes - e.g. Increased basic skills / employability as progress towards a working future. These often give a better indication of the effectiveness of projects, particular those who work with people with multiple disadvantage and where the end outcomes are hard to attain within the life of the project e.g. getting a job.
Q’s Likely questions:
Q: What if we have outcomes not in your list?
Q: Do you include soft outcomes? A: Yes, some of our progression outcomes maybe considered to be “soft outcomes” Again, we’ll only ask you to give indicative targets and report against the outcomes we’ve listed, although we recognise that you’ll likely to achieve many more with your work.
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11. Enable programme
Must meet focus on multiple disadvantage and transition points, with holistic delivery
Where a charity has identified a specific organisational development need
Must have a clear work plan of activities which lead to the outcome
Total grant of up to £15k up to 2 years
The outcome must be to strengthen the organisation in one of 5 areas

12. Enable & Enhance programme outcomes
IMPROVED ACTIVITIES AND SERVICES
IMPROVED LEADERSHIP/GOVERNANCE
IMPROVED STRATEGIC PLANNING/POLICY
Point of slide: for audience to find out if the work they wish to do fits the Enable programme outcomes
Describe examples as below:
IMPROVED ACTIVITIES AND SERVICES
e.g. pilots; assessment of needs; user satisfaction; service reviews
IMPROVED LEADERSHIP/GOVERNANCE
e.g. trustee training; change management; social entrepreneurship
IMPROVED STRATEGIC PLANNING/POLICY
e.g. business planning; fundraising strategies; policy reviews
IMPROVED STRUCTURES/SYSTEMS
e.g. finance controls; management of volunteers; impact assessment
IMPROVED COMMUNICATIONS
e.g. website development; reaching new audiences
IMPROVED STRUCTURES/SYSTEMS
IMPROVED COMMUNICATIONS
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13. Enhance Support www.lloydsbankfoundation.org.uk
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14. Enhance – Background – 3 elements
Enhance – development principles
Bank Support
Enhance support will be provided through a mix of three channels:
External supplier
Foundation Support
External Supplier: Including third party consultants, agencies, memberships or IT programmes.
Foundation Support: Online resources and Grant Manager signposting relevant information sources.
Grant Manager matches the needs of the charity
Bank support: Bank volunteers to become charity mentors to support charities while boosting their own personal development.
Charity Mentor - ‘critical friend’ provides charity with feedback and encouragement as well as some basic business management support based on their own personal business experience.
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15. Strengthening Charities – LBG Charity Mentoring
Bringing together colleagues from Lloyds Banking Group with charities funded by the Foundation, Charity Mentoring is about facilitating high-value volunteering and providing a much needed resource to charities in the current climate.
Charity Mentors draw on their professional skills, experience and networks to support charities. They offer challenge, feedback and encouragement to help charities tackling their most pressing issues.
Visit the Intranet to enquire about Charity Mentoring and sign up.
310 Charity Mentors have been matched with charities funded by the Foundation so far, including 40 Mentors in London
“Mentoring makes us become the best we can be. It makes you raise your game. Going into a new setting and meeting new people has made me think really carefully about the strategies and approaches that I use.
It’s made me reflect on how I interact with my team, and bring these approaches back into the business. ”
Nigel Mann, Halifax and Charity Mentor for Focus 12 Durg and Alcohol Rehabilitiation Centre, Bury St Edmunds.

16. Enhance – development principles
The Foundation wanted to create a type of support that:
Delivered the aim -‘to strengthen funded organisations so that they can deliver better services for people facing multiple disadvantages’
Stood a reasonable chance of delivering the outcomes
Was ‘simple and light touch’ to access
Was ‘personal, proportionate and appropriate’ for the charities
Had ‘no conditions’ attached or penalties for potential failure
Used other non-profits to deliver services
29,714 beneficiaries – total project – not first year – have divided by the number of months funded to get this figure. Need to think about this for the future.
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17. Enhance – Founding principles
The support should build capacity within the organisation, not merely provide a quick fix solution.
The charity was the client, not the Foundation.
The Foundation would not be a party to any of the external support delivered.
The organisation (senior responsible person) should be committed and willing to engage, if this became an issue, support could cease.
Consultant support would be outcomes focused with a clear plan
Bank support was more organic in approach and depended on the individual skills of the mentor.
29,714 beneficiaries – total project – not first year – have divided by the number of months funded to get this figure. Need to think about this for the future.
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18. 66 Enhance Awards (£149k) +c100 Charity Mentors(aim=250 y/e)
Enhance – What charities are accessing support for
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19. Enhance – Key Learning from IVAR evaluation
Helped
Hindered
A high level and experienced support provider with a focus on strategy
Support that is basically an injection of part-time help with practical issues rather than focused on organisational effectiveness
A match between the skills of the support provider and the charity’s needs
Lack of ‘fit’ or empathy between the charity and the support provider
Securing high level strategic input on the charity board
Weak or unstable charity leadership
Being left with a very clear action plan that focused energies
Support for governance not welcomed by the Chair and/or failure to include all the trustees
Involving everyone – staff and trustees – so that the support reaches into the heart of the organisation
Lack of organisational capacity, especially where the chief executive officer is part-time
A relationship was maintained with the provider after the formal support had ended.
The charity is in a financial crisis and focused on fighting for survival
The support provider is:
enthusiastic
committed
motivational
inspiring
non-judgemental
knowledgable
providing support in areas which are not specifically his / her area of expertise
inconsistent / unreliable
putting their personal benefit before the best interests of the charity
too busy
out of his/her depth
The charity has:
commitment to the process
capability to effect change
capacity for implementation
strong leadership with strategic vison
The charity
is half-hearted about support or doesn’t appreciate the implications for time and effort
is not motivated or is unable to address the issue identified as likely to produce the most change

20. Evaluation learning – IVAR report
Unintended consequences of the support were sometimes more valuable than the intended outcomes, such as increased confidence, increased ability to act or lead, reduction in isolation and increased networks.
It was important to reduce the risk of key man /woman dependence by involving a wide range of people in the support.
It was important to work at the pace of the charity
It was important to see capacity building as a strategic journey rather than disjointed pieces of work.
It had to be assumed that there would be failures in some of the support, this usually fell into the following categories;
rapport was not established / not given a chance to develop
changes in staff
the charity did not seek help from the Grant Manager when the support started to fail
the charity went into crisis / fire-fighting mode and could not focus on development.
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21. Targeted work in Redcar and Port Talbot - Values and approach
We will work with the selected projects to support them in a nurturing and helpful way. We will not impose our opinions on them but help them to find solutions which suit their values and culture.
We will act as facilitators and convenors, we will create conversations, bring the right people together and link them together, encouraging strategic thinking and helping the organisations to consider the needs of the population as a whole.
We will support the development of networks to reduce isolation and duplication and increase cross referral mechanisms.
We will recognise competition and support development of healthy competition.
We will promote the value of small and medium-sized charities to other local stakeholders and we will work to get these organisations a seat at the table of decision makers and influencers.
We will involve other funders in our work and keep them informed, encouraging them to collaborate.
We will work at the pace of the organisations involved and allow them to lead the way, we will be respectful and maintain confidentiality of their development needs.
The emphasis of the pilot will be on creative co-creation, not steering.
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22. How else does the Foundation support grantees?
Ella Forums
School for Social Entrepreneurs
Action learning sets
Grantee focus group
Westminster events
Charity Achievement Awards
Round tables on specific subject areas
Grant manager connecting and networking charities
Grant manager support and signposting
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23. What next? How we need to adapt our strategy
Enhance can be more strategic and have a bigger impact
Charities need to recognise their journey and engage with the ambition
We need to start with strategy and engage Trustees
Impact measurement is poor
We need more tools in the toolbox
Fundraising, digital, commissioning etc.
Blended finance. Repayable grants
Charities in crisis
Working with other funders.
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24. Manging risk in grant making more effectively.
Doing more with less
Most charities we speak to report an increase in demand, few are being strategic about how they cope with that
Facing forward report – practical steps for charities to plan for the future
Making the most of free resources – Cranfield Trust, Corporate partnerships, CITA, NCVO, sign posting
Diversifying income streams and finding ways to increase unrestricted funding
Manging risk in grant making more effectively.
Buying into leadership, not balance sheets.
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