1. How can community hubs be financially viable
How can community hubs be financially viable? Lisa-Marie Giquel and Lorraine Hart

2. Why are we here today?
Share findings from research commissioned on community hubs and how they can work financially
Workshop some key findings in relation to Big Local areas 
Share your experiences, insights, learning and solutions with other Big Local areas.  

3. How will we spend the next 50 minutes?
Share findings from community hubs research
Activity and table discussion
Feedback from table discussions
Wrap up

4. Some context The importance of local “social infrastructure”
physical assets and facilities that encourage communities to thrive, socialise, network, organise and run activities
include community hubs, pubs, shops, post offices etc.,
Dan Gregory essay on ‘Social Infrastucture’
In Big Local, community hubs matter:
Almost 100 areas have access to a hub; almost 20 purchased a hub
Hubs closely linked to Big Local legacy

5. What do we mean by a “community hub”?
Operate out of a building (buildings or part of a building)
Multipurpose
Provide or host a range of activities and services
Open and accessible to local community
Provides services local community need
Community-led governance

6. Projects on community hubs
Local Trust and Power to Change are co-funding 2 projects about community hubs:
Research
Guidance and tools

7. 1) Research How can community hubs be financially viable?
Research hubs in England
External researchers, Steve Wyler, David Carrington and Neal Trup
Surveyed (83), analysis of accounts (106), interviews, focus groups (18) and case studies (8)
Research report completed in July
Findings will help develop the guidance/tools

8. Limitations of research
Small sample size
Sample not representative of all hubs
Bias towards successful hubs; those that are still going!

9. 2) Guidance and tools
To support groups and organisations set up and maintain a viable community hub
Guidance and Financial planning tools to help set up and maintain a viable hub.
Delivered by Locality- completed later this year

10. 2) Guidance and tools topics:
Guidance will cover:
Bringing stakeholders together
Options available (buying, building, renovating, sharing etc.,)
Costs, finances and fundraising
Managing and implementing
Planning for the long term
Guidance topics:
Bringing stakeholders together
Options (buying/building/renovating/sharing)
Costs, finances and fundraising
Managing and implementing
Planning for the long term
Tools topics:
The set-up process (gifted free space – asset transfer- renting- buying- building new).
Running costs – (staffing- costs of ownership/occupancy- operational cost- services costs- maintenance/renewal- insurances- finance costs)
Generating income- (diversifying income- sources of funding available to hubs [grants, earned income through contracts, room hire, long term leases, trading, subsidies, asset transfer)
Tools will take people through financial implications of different options
Locality:
Locality is the national membership network for community organisations. Peer learning and connection through the membership network. Resources for local people to get involved & create change in their community

11. 2) Guidance and tools topics:
Tools will cover:
Set-up process (gifted space, asset transfer, renting, buying, building new)
Running costs (staffing, costs ownership/occupancy, operational, services, maintenance, insurances etc.,)
Generating income (diversifying, sources available)
Will take people through financial implications of different options

13. Finances Hub organisations have diverse income sources.
Main sources were: meeting room/hall hire, grants from trusts/foundations, office/workspace rental
Other sources included: public sector contracts, sale food/drink, loans, membership fees
There has been a change in income sources between
Reduction in grant income (37%-30%)
Increase in income from other sources, including contracts (17%- 63%)
Overall, average income remained flat, but differs according to size of hub organisation

14. Finances
Despite confidence, walk a financial “tight rope” with low surpluses and reserves
Average surplus 1.2% between
Only 48% had free reserves 3 months or more- 20% had for less than 1 month
Main costs relate to staff and building
Staff costs higher % for larger hub organistions, and lower for smaller organisation
Building costs (rent, maintenance, utilities, insurance) varied between 20-40% of total costs
Organisations scrutinise their costs and make difficult decisions when needed

15. Owning an asset
Owning an asset can improve impact and income, but also increase risk and potential losses
Benefits/ opportunities
Owning a hub generate x3 more income
Provides a source of income from building rental/room hire
Can increase long term resilience
Ability to do more things
Collateral for attracting investment

16. Owning an asset Challenges
Need for major repair/refurbishment to make space acceptable and safe
Building can be expensive to run
Value of hub can be less than cost of repairs
Short or encumbered leases- can be hard to attract investment
No guarantee will generate surplus
58% of those owning an asset produced a surplus, compared to 67% of those who did not
Increases potential for losses

17. Support
Good use of volunteers can be critical for long term financial success
But can be difficult to build up reliable pool
Quality of management accounts varied
Errors distinguishing between restricted/unrestricted, and free reserves
Poor quality accounts make it hard to make decisions/ control costs
Overall, external consultants were useful, but finding consultants with expertise sometimes difficult

18. What else matters?
Financial success and sustainability not reliant on the hub’s business models alone.
quality leadership
community engagement and involvement
relationships with others, e.g. local council and other public bodies
governance
local context

19. What did hub organisations say?
Involve large numbers of people from across the community
Build up a pool of reliable volunteers
Provide things people will value or pay for
Ensure the space is attractive, welcoming and well used
Run a “tight ship”, keep excellent financial data
Build positive relationships with others
Build a positive team and embrace change

20. Table activity- questions
Who could be your hub partners and allies? How would you find them? (Partnerships and your hub)
How could you engage and involve the community in your hub? How do you know your hub is providing something the community will value or will pay for? (Engaging the community and your hub)
What are the challenges and opportunities in owning a hub? How do you know if owning a hub is right for you? (Owning a hub)
What sources of income are/might be available to you? What would you do if a source of income changes unexpectedly? (Generating income from your hub)
How could you attract and keep your volunteers? How do you find the people in your community with the skills that you need? (Skills and resources to run your hub)

21. Wrapping up Hubs research report available online
Hubs guidance and tools - later this year (sign up to Local Trust newsletter for update)
We will answer your hub-related questions after the event
Other hub sessions at Connects
Other reading of interest
(2019) Power to Change research on community assets
(2018) Power to Change research on community hubs

22. Thank you for your time!