Making Community Buildings

Work for Us –Finance

Debbie LambLocality

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

Glendale Gateway Trust

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 Hold – practical toolkit

Places for Everyone – North East info

Asset Transfer Unit – guides and case studies

Early Warning Guide – coming soon

Locality ’11: Communities ambitious

for change1st & 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: www.locality.org.uk email: info@locality.org.uk

tel: 0845 458 8336 Locality, 33 Corsham Street, London NI 6DR

Debbie Lamb 01207 588534