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Community Capacity Building
Peter WilliamsDirector
Development Trusts Association WalesVillage SOS
Narberth 1st May 2012
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Development Trusts Association Wales
• The Development Trusts Association supports its development trust members as part of a community regeneration & enterprise network of 50 Trusts in Wales & more than 500 across the UK
• Our members hold community owned assets worth £430 million across the UK
• Income generated from assets is £20 million pa
• We are part of the Social Enterprise & Communities Regeneration Networks in Wales, helping to grow the Social Economy and build sustainable communities across Wales
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Development Trusts
• Community owned and led Community accountable and based organisations Independent
• Cultivating Enterprise Operating as social and community enterprises Trading in good or services Not for private profit
• Building Assets Acquiring community owned land or buildings to create income & ownership Engaged in long-term economic, social, environmental & cultural regeneration
• Securing Community Prosperity Creating wealth in communities and keeping it there
• Diverse Operate in villages, market & coastal towns, rural areas, former mining communities, housing estates & urban areas Committed to guiding values, new ways of working, actively involved in partnerships
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Community Anchors
Term used to describe Development Trusts and other community organisations that are :
• Independent community led and based
• Multi-purpose providing range of integrated solutions and services
• Inclusive
• Leading community renewal
• There for the long-term
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Social and Community Enterprises
• Social enterprises are organisations which are trading for a social purpose
• Community enterprises are organisations trading for a social purpose within a defined geographical area or ‘community of interest’
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Sustainable and Resilient Communities
• Integrated and innovative, long term approaches to sustainable economic, environmental, social and cultural regeneration as real alternative to ‘business as usual’.
• Triple bottom-line focus of social enterprise and third sector well placed to take this forward.
• Opportunities for our sector in delivering practical solutions to climate change with local benefits.
• Renewable energy, energy minimisation, zero waste and re-use, local currencies, food security, green homes, community land trusts, natural assets – woodland, biodiversity, new technology.
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First Steps
‘Creating an effective and viable community owned enterprise that can meet local needs and sustain in its own operations
through trading and income generation’.
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Build on Diversity
• EVERY community is different
• Key is ownership and meeting communities own needs and opportunities
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Starting Points
• An individual, social entrepreneur or community activist
• People coming together to make something happen
• An existing group or partnership wanting to grow or develop a new enterprise or service
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Getting Started
• Vision or good idea or business proposal• Campaign, community development and planning• Listen to others – is there a need, loss of service, resource or new
opportunity?• Who and where is your community and market?• Identify and build on local skills and commitment• Communicate your vision – spread the message• Get support from others• Talk to other communities that have been there before
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Develop a Plan or Business model
• Keep it simple to start
• Try to focus – e.g. Balanced Scorecard (now, sooner, later)
• Don’t put all your eggs in one basket – spread the risk
• Get advice and talk to other community enterprises – what works?
• Identify your stakeholders (mapping)
• Capacity and capability to deliver
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Getting Organised
• Formal working group
• Legal Structures – options
• Governance – membership and ownership, skills required
• More detailed business plan
• Know your numbers
• Mixed economy of funding and income
• Get support and work with partners – but keep ownership
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Keep Open to Ideas
• Plan carefully but operate flexibly
• Test your assumptions with critical friends
• Social Media – different ways to win support
• Crowd funding – Buzz Bank
• Time banking
• Community Share Offers
• Join Networks, develop your links, exchange ideas.
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“Fundraising to Investment ”
• Recognition that a range of community services or social and environmental goals are best delivered through a business model.
• Historic shift in financing of social and community enterprise from fundraising approach to investment in assets, community shares and loan or equity finance.
• Major increase in community ownership and transfer of assets through development trusts, co-operatives, community land trusts, community renewable schemes.
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Key issues for Grant Funders and Investors
• Credibility - of proposal or business model
• Competence - of organisation, governance, financial management etc
• Capacity - to deliver and to grow
• Confidence –to promote and sell your idea
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Grants• Welsh Government- RDP, Community Facilities and Activities,
Communities First, Sustainable Development, Renewable Energy, Micro business loans etc
• European Structural Funds
• Big Lottery- People and Places and specific priorities
• WCVA- volunteering, ILM’s,EU grants
• Local Authorities CVC’s- local grants and start up
• Trusts and foundations-Lankelly Chase, Tudor , Community Foundation
• Social Enterprise- Wales Co-operative Centre, DTA Wales, Cylch, Social Firms Wales
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Loans and Investments
Borrowing• Own Bank• Sector Specialists-Triodos/Unity/Charity Bank/CDFI/ Co-operative and
Community Finance/CIF • Regional Development Funds – Finance Wales• Social Brokers—New Venture Philanthropy, Equity Plus, Investing for
Good etc • Programme related Investments – Cylch, Welcome, Esmee, Tudor
Equity• Community Share Issues• Venture capital funds – Venturesome, Big invest
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What is Asset Based Development?
• Community ownership of buildings & land leads to community transformation • Possession of tangible assets is a key to achieving viability, independence & sustainability which underpins community based enterprises & regeneration organisations
• Focus on acquisition or transfer of land and buildings by Development Trusts, Co-operatives & other Community Enterprises
• Can also include equipment, other natural assets (woodland, materials for recycling)
• Financial assets – capital funds, endowments or investments on balance sheets
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Making Assets Work - Creating New Social & Community
Enterprises Assets are the base for a wide range of community enterprises & services provided by Development Trusts, co-operatives & other social enterprises.
Examples in Wales include:
• Managed workshops or office space• Shops & retail developments• Restaurants & cafes• Community resource centres• Arts & cultural enterprise centres• Heritage & craft workshops • Housing – including green homes• Sports & leisure facilities• Recycling & environmental improvements• Play & childcare facilities• Renewable energy businesses• Healthy living centres
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Benefits Building Sustainable Communities
Community ‘ownership’ – demonstration of shift in ownership & local control. Communities ‘doing it for themselves’.
For communities – sense of stability & positive vision
Local economy – long term benefit, retaining wealth locally, growing assets as foundation for renewal & enterprise & creating local jobs
Builds independence and skills, credibility & viability of community organisations & enterprises
Creates a base & focus for new community enterprises & services – eg. employment, training, arts, resources, etc
Enables access to wider finance income generation & loans
Demonstrates sustainable development – regenerates derelict or underused land or buildings, productive use of resources, brings together social, environmental and economic solutions.
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Community Shares
• Defined as community enterprises with more that 20 members with combined investment of more that £10,000
• Oldest surviving example in Lincolnshire Co-operative Society est. 1861: 161,000 members, £9.6m share capital
• Currently 142 enterprises fit this definition, 40% of which have been established in the last 30 months
• Combined community investment of over £300 million and combined membership of nearly 6 million.
• In last ten years there have been 41 cases with total community investment of £45m from combined membership of 60,000
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Community Shares
• Early examples in Wales include: Bro Dyfi Community Renewables part funded by Community Shares
• Moelyci Environmental Centre Ltd IPS acquired farm and land to develop sustainable enterprises
• Cardigan 4CG (Rural Sustainability Society) -Share issues related to town Centre, former Co-op site 2010 shares at £200 each.
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Social Returns on Investment
• Know your neighbourhood and business baseline statistics
• Quantify the cost of doing nothing
• Methods of Measurement– Social accounting– SROI—Prove it– Change Check
• ARAD report for Galeri Caernarfon
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Support & Advice
DTA Wales www.dtawales.org.ukWales Co-operative Centre www.walescoop.comCynnal Cymru www.sustainwales.comWales Social Enterprise Coalition www.welshsec.orgSocial Firms Wales www.socialfirmswales.co.ukCommunity Housing Cymru www.chcymru.org.uk Cylch – Wales Community Recycling network www.cylch.org.ukLand for People (community land trusts) www.landforpeople.co.uk Unltd Wales www.unltd.org.ukEnergy Saving Trust / CSREG / YNNI’R Fro www.energysavingtrust.org.uk Wales Council for Voluntary Action (WCVA) www.wcva.org.ukArchitectural Heritage Foundation www.ahfund.org.ukPlanning Aid Wales www.planningaidwales.org.ukRICS Wales www.rics.org.ukRTPi www.rtpi.org.ukWales Community Woodland Association www.coedlleol.org.uk
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• Emerging development trusts or existing community regeneration organisations or enterprises wishing to become development trusts can become Full Members of DTA Wales
• Housing organisations, local authorities & other partners can become Associate Members
• Benefits include: newsletter & publications, UK wide and Wales based conferences, training & seminars, access to best practice network, advice and support, members’ discounts, legal advice, members’ insurance scheme
[email protected] www.dtawales.org.uk Tel: 02920 190 260
Membership - Join us!