Social investment

1. Social investment Smaller Providers Perspective

2. Introduction Presentation title • YMCA DownsLink Group a merger of Sussex Central YMCA and Guildford YMCA • Our experience of social investment- tendering for DCLG’s Fair Chance Fund • Bid covered Sussex & Surrey • It had social investment support • We weren’t successful

3. It’s quite confusingSmaller Provider Perspective Presentation title

4. What was our motivation Charity’s and RP’s have a more important role than ever to combat poverty and promote equality of opportunity Traditional public sector funding sources won’t be enough to sustain our work and make the impact we need to have Presentation title

5. Our model Presentation title • Recognise the reality of payment by result contracts • Want to have a stake in future Government & LA contracting • We are not cash rich so need support for cash flowing these new models of contracting • We need to manage/ share risk • Proposed SPV model • SPV owned by social investor who put in 100% of running costs • YMCA would provide services for the SPV based on agreed cost structure • SPV would include intermediary organisation to run the SPV

6. What we learnt Presentation title • This model of funding will grow, potentially mainstream • There is an appetite in the private and commercial sector to develop social investment partnerships they are impressed by what we do • Our experience was of a very professional, thorough, but fair organisation that was as interested in social capital as profit • They know their business and very quickly get to know yours • Its not cheap to set up • It’s a partnership we would value in the future and would deliver additional benefits • Already thinking about alternative opportunities