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Sustaining a Thriving Third Sector 23 rd April, 12:00-15:00 Follow us on Twitter @ Leedsccp #STTS. State of the Sector in Leeds. Richard Norton. Times of change. Situation very fluid – high levels of change Legislation – NHS changes
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Sustaining a Thriving Third Sector 23rd April, 12:00-15:00 Follow us on Twitter @Leedsccp #STTS
State of the Sector in Leeds Richard Norton
Times of change Situation very fluid – high levels of change Legislation – NHS changes Definitions 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 working Calls 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 act Need for new models – personalisation Partnership 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 programme Open 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
Opportunities Community rights and localism – new funds New funding from Clinical Commissioning Groups – social prescribing contracts, grant pots Leeds 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 funding Engaging 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 Registered Charity Since 1989 Knowledge & Staff Funds & Social Impact Registered CIC Since 2014
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-launch • Other courses on social issues on demand
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-launch • Other 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 workgroups • Low margin product, ideally delivered through subsidies from grants • Expanding 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 resources • Sick Party DVD widely acclaimed and continues to sell • First major research contract • First 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 & Education Email: Amber_wilson@basistraining.org.uk Tel: 0113 – 243 0036
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
Peter ParkerCharities 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 repay • dividends are paid out of profits – no profits, no dividend • Bonds • commitment to repay – more attractive to investors?
The benefits • No interest/dividend in the early years • Attractive to lending organisations – leverage risk and evidence of local commitment • Fresh layer of volunteers with new ideas • Gain press attention • Involve local businesses and support agencies
But…an issue is not guaranteed to succeed as outcome depends on… • the strength of the business case • the level of financial return and security • the passion that can be generated among potential supporters/investors • the quality of planning and campaigning
Organising an issue • Business 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 public • Written/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”
CBS • can undertake a public issue of withdrawable shares with a maximum investment for an individual of £100,000 • directors should suspend rights of withdrawal for a few years and reserve right to suspend withdrawal indefinitely • can 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