Sustaining a Thriving Third Sector

23rd April, 12:00-15:00

Follow us on Twitter @Leedsccp #STTS

RICHARD NORTON

State of the Sector in Leeds

Times of change

Situation very fluid – high levels of changeLegislation – NHS changesDefinitions of the sector increasingly fluid – new

legal forms, social enterprises/entrepreneurs, spin-outs

Move from grants to contracts – but also personalisation: organisational changes

New partnerships/cross-sector workingCalls for “new ways of working” More change after May!

Challenges

Austerity/cuts: varied impact on TSOs – some closures, others thriving – but small grants funding holding up

Impact of government policies – welfare reform, increased demands for service

New responses – food banks, pay as you feel New legislation – care actNeed for new models – personalisationPartnership working/consortia Evidencing Impact and use of Data

Leeds context 1

Leeds City Council response to cuts – protection of front-line services as far as possible, negotiated changes to contracts; 15/16 will be worse

Seeking to work with sector – Third Sector Leeds Assembly; Third Sector Partnership; Corporate Leadership Team discussions

“Leeds Pound”Health and Social Value programmeOpen to new ways or working together

Leeds Context 2

NHS changes: 3 Clinical Commissioning Groups, increasing recognition of value of sector, commissioning by NHS provider trusts

Police and Crime Commissioner: third sector adviser; services for victims, sexual and domestic violence services

Leeds City Region: Local Enterprise Partnership, West Yorkshire Combined Authority; economic agenda, growth funds and European funding

Relations with Universities and Colleges

Legal Types

5%0%

9%

35%

4%

47%

Community In-terest CompanyCompany (Other)Company Limited By GuaranteeCompany Limited By Guarantee/ Reg-istered CharityIndustrial and Provident SocietyRegistered Charity

Income

47%

11%

20%

9%

12%Up To £20,000

£20,000 - £50,000

£50,000 - £250,000

Over £250,000

Over £1 million

FTE Employees

42%

30%

9%

7%

5%7% None

1 to 5

6 to 10

11 to 20

21 to 50

Over 50

Volunteers

5%

23%

25%17%

15%

16%None1 to 56 to 1011 to 2021 to 50Over 50

Primary Client Groups

Beneficiary GroupTotal (Primary Client Group) Percent of Sector

People of Faith 223 17%

Children 127 10%

Young People 117 9%

BME 114 9%

Older People 107 8%

People with Health issues 103 8%

General Public 99 8%

Disabled People 98 8%

Other 97 8%

Tenants And Residents 65 5%

Women 44 3%Voluntary And Community Groups 38 3%

Families / Parents 34 3%

Refugees / Asylum Seekers 19 1%

Total 1285 100%

Scope of Activity by Locality

Service AreaEast North East

South East

West North West

Total

Adult Care and Support 5 8 7 20Advice and Financial Inclusion 9 18 10 37Arts and Culture 62 65 95 222Children 12 33 31 76Communities and Localities 58 49 61 168Crime Prevention and Reduction 1 1 3 5Economy and Enterprise 4 2 4 10Education and Training 16 21 23 60Environment 14 16 19 49Faith 52 50 70 172Health and Wellbeing 32 61 33 126Housing 44 38 35 117Infrastructure Support 0 18 2 20Other 16 21 21 58Vulnerable Older People 12 20 16 48Total 337 421 430 1188Percent 28% 35% 36% 100%

Opportunities

Community rights and localism – new fundsNew funding from Clinical Commissioning Groups –

social prescribing contracts, grant potsLeeds Community Foundation programmes – Ideas

that Change Lives , Yorkshire Venture Philanthropy Programme, Innovation Fund

ESIF 2014-2020 programme inc Big Lottery Opt-In and Community-Led Local Development

LeedsACTS! seedcorn fundingEngaging with council and commissioners about new

ways of working and better use of assets and resources

Basis Training & Education

Social Enterprise linked to Genesis Leeds

Basis Background

Genesis Leeds (charity) since 1989 supporting: Female sexworkers Young women at risk of or involved in CSE

Established in 2012 to meet: Growing demand for high quality CSE training and

awareness raising Increased funding challenges for Genesis

Basis became a Community Interest Company in Jan. 2014 with rebrand

Basis and Genesis Leeds Relationship

Knowledge &

Staff

Funds &

Social Impact

Registered CharitySince 1989

Registered CICSince 2014

Sources of Income

Training & Workshops

DVD & Resources

Research & Consultancy

Grants Total0

20000

40000

60000

80000

100000

120000

2013/42014/5

Client Groups ( Leeds and Nationally)

Local Authorities Schools NHS Charities Private Residential Care

Basis Training Courses

Child Sexual Exploitation Trained over 4000 professionals in UK Different levels (intermediate and advanced) Training accredited with the CPD service in 2013

Introduction to working with sexworkers Piloted in 2014 - waiting for certification and re-

launchOther courses on social issues on demand

Clients we’ve worked with

Basis Training Courses

Child Sexual Exploitation Trained over 4000 professionals in UK Different levels (intermediate and advanced) Training accredited with the CPD service in 2013

Introduction to working with sexworkers Piloted in 2014 - waiting for certification and re-

launchOther courses on social issues on demand

DVD & Learning Resources

Sick Party DVD – CSE Awareness Created to highlight the current ‘Party Lifestyle’

model of grooming Used with young people and professionals 20 minute professional drama focusing on real life

events Sold over 800 copies UK wide

CSE Awareness with Young People

Raising awareness with young people in schools through assemblies or small workgroupsLow margin product, ideally delivered through subsidies from grantsExpanding range of products

Research & Consultancy

Research: - Needs assessment of sexwork in Leeds - CSE Scoping exercise in N. Yorkshire

Potential consultancies: - Evaluation/audits - Programme development in areas of our expertise

Basis Unique Selling Points

Trainers are frontline practitioners Close ties to Genesis through staff, learning

and asset lock Social enterprise model for a training

organisation Diversity of products and topics

New Developments

Adapting/diversifying product portfolio: Consultancy and Research (higher profit margins,

potential for greater social impact) New Educational Resource (DVD, Webplatform) New training topics

Specialization

Partnerships

Achievements so far

Market lead in CPD Certification National reach for training and resourcesSick Party DVD widely acclaimed and continues to sell First major research contractFirst multi-year training contract

Challenges of the model

Volatile income levels Client Austerity Increased competition and market saturation Staffing

Flexibility Quality Control (freelance)

Investment vs. charity contribution Social vs. Enterprise

How has it contributed to Genesis

Wider social impact (quantity and quality) Wider profile and audience reach Wider scope of knowledge

Learning from training Research

Development of resources used in Genesis Contribution to staff salaries/overheads Bottom line profits go to Genesis

Thank you!More info on:

www.basistraining.org.uk@basistraining

Linkedin: Basis Training & EducationEmail: Amber_wilson@basistraining.org.uk

Tel: 0113 – 243 0036

Mobilisation Collaboration with Other Charities

Company Background

31 years old

Name Change

Areas of service delivery – Advice – Volunteering – BLC – Families and Communities

£600,000 turnover

Approx. 20 different funding streams

28 permanent and 15 sessional staff.

Almost 70% of staff team work part-time basis

Rationale for Collaboration

Growing Client/Service User Needs

Move to Larger Contracts Need to Deliver More for Less Expenditure Savings - Efficiencies BLC Value

Our Collaboration

Beyond Partnership working

Shared Values – Shared Vision (around the benefit of Collaboration)

Leeds Advice Consortium – 1.6m City Wide Advice Contract

Leeds Locality Consortium

PEP Project – Social Prescribing Service - West Leeds CCG

Barca Leeds – Specialist Debt Caseworker

Collaboration to Purchase Service – ICT

Cross Sector Collaborations

John Walsh – York Street Health Practice

www.wr ig leys . co .uk Te l : 0 1 1 3 2 4 4 6 1 0 0

COMMUNITY SHARE AND BOND/LOAN STOCK ISSUES

Peter Parker Charities and social economy lawyer at Wrigleys since March 2014. Previously senior associate with 8 years experience as a banking and finance lawyer at DLA Piper. Secondments to Barclays 2008, 2010 and 2013. The "boom" and "bust" years.

What are share and bond issues?

Share issue – offer for shares by a company or a registered society (a co-operative (Co-op – benefit of its members) or a community benefit society (CBS – benefit of the community))*

Bond issue – offer to several people to lend money to an organisation on similar terms for several years

*Co-op and CBS formerly known as Industrial and Provident Society (IPS) - Co-operative and Community Benefit Societies Act 2014 (“CCBS Act”)

Shares“withdrawable” (with limited rights to “withdraw”) or “transferable” – no obligation to repaydividends are paid out of profits – no profits, no dividend

Bondscommitment to repay – more attractive to investors?

The benefits

No interest/dividend in the early yearsAttractive to lending organisations – leverage risk and evidence of local commitmentFresh layer of volunteers with new ideasGain press attentionInvolve local businesses and support agencies

But…an issue is not guaranteed to succeed as outcome depends on…

the strength of the business casethe level of financial return and securitythe passion that can be generated among potential supporters/investorsthe quality of planning and campaigning

Organising an issueBusiness planning

- What is the market for your services and what pattern of sales growth can you expect?

- What will your customers pay and what margin will that provide?

- How will your overheads be met?- What are the capital assets and how much

cash will you need before sales start to cover costs?

- What are the risks in the proposal? - What is the first opportunity for investors to

sell their shares/bonds?

Building support - Board and staff members

- Residents - Businesses - Councillors/regeneration agencies/the

media - Ethical investors

Making it legal

Companies Acts prevent private companies limited by shares (CLS) from offering shares to the public. Only public companies limited by shares (which require a minimum of £50,000 in share capital) can offer shares to the public

Companies Acts permit companies limited by guarantee (CLG) to offer bonds to the public

CCBS Act – permit Co-op and CBS to offer shares or bonds to the publicWritten/verbal offers for shares and bonds

“financial promotions” under the Financial Services and Markets Act 2000 (“FSMA”)offers for shares and bonds usually have to be approved by an “approved person”But requirement generally does not apply to CBS where shares/bonds are “withdrawable” rather than “transferable”

CBScan undertake a public issue of withdrawable shares with a maximum investment for an individual of £100,000directors should suspend rights of withdrawal for a few years and reserve right to suspend withdrawal indefinitelycan also issue bonds, no maximum investment for an individual

Easiest and cheapest way to establish a CBS is through a sponsor of model rules

Tax reliefs

Seed Enterprise Investment Scheme

Enterprise Investment Scheme

Community Investment Tax Relief

Successful share issues

The Baywind Energy Co-operative

Cafedirect plc

Headingley Development Trust

Sustaining a Thriving Third Sector

23rd April, 12:00-15:00

Follow us on Twitter @Leedsccp #STTS