TPR-2019-07-Community hubs - Understanding survival and success.pdf

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 1/84 - Community hubs

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 2/84 - Community hubs: Understanding survival a…

Community hubs: Understanding survival and success was researched by Neal Trup, David Carrington and Steve Wyler and funded by Local Trust and Power to Change in June 2019. Local Trust is registered in England and Wales, charity number 1147511, company number 07833396. localtrust.org.uk This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-ncsa/4.0/

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 3/84 - Foreward: Matt Leach Local Trust

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 4/84 - Foreward: Vidhya Alakeson Power to Chang…

Foreward: Vidhya Alakeson Power to Change

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 5/84 - Contents

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 6/84 - Note on terminology

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 7/84 - Summary of findings

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 8/84 - These findings indicate a high degree of…

These findings indicate a high degree of ability, at least among those which have survived, to adapt their business models to rapidly changing circumstances.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 9/84 - pride, strengthening the balance sheet a…

pride, strengthening the balance sheet and offering collateral for investment, with low running costs and requiring little maintenance.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 10/84 - supported in the focus group discussions…

supported in the focus group discussions, although several people suggested that a broad range of activities only becomes problematic if it means that people in the organisation are stretched too thin or venture beyond their areas of knowledge and skill.Their view was that a lively mix of complementary activities, centred strongly on core mission, can be attractive to the local community and to funders alike, and therefore enhance the prospects for long term viability.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 11/84 - community hub organisations across the c…

community hub organisations across the country.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 12/84 - types of leadership attributes are equal…

types of leadership attributes are equally important: entrepreneurial energy, local knowledge, the ability to build partnerships and generate trust, persistence and resilience, and empathy and insight into the lives of people within the community; and not all of these are easily imported. The primary implication of our research is that the most effective strategy for enhancing the financial and other competencies of community hub organisations is to start with the skills and insights which already exist in abundance within the sector, thus making it easier for learning to be transmitted horizontally between practitioners, locally, regionally and nationally; and to supplement this with training activities (including for board members) with, wherever possible, peerbased action learning.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 13/84 - About this study

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 14/84 - � The building of community confidence a…

� The building of community confidence and self-determination in places where people often feel `done to;

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 15/84 - 2.3 Aims of this research

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 16/84 - Our findings:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 17/84 - 3.2.3 Most have been operating for more …

3.2.3 Most have been operating for more than five years � 39% had been operating less than five

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 18/84 - � The most common primary activities are…

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 19/84 - on offer. Most community hub organisatio…

on offer. Most community hub organisations therefore need to apply a cross-subsidy model, generating income from people who can pay or from external funders, and applying any surpluses to activities where subsidy is required (see section 6.3).

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 20/84 - As the examples of Colebridge Trust (8.1…

As the examples of Colebridge Trust (8.1) and Heeley Trust (8.3) illustrate, organisations in this category can deliver activities at greater scale, with a well-integrated service offer, and (in some cases) a portfolio of community buildings and land which can serve as a foundation for wider community renewal.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 21/84 - Our findings:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 22/84 - 4.1.2 Changes in income over the last fi…

4.1.2 Changes in income over the last five years

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 23/84 - The income trend varies according to siz…

The income trend varies according to size of organisation, as can be seen in the chart below:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 24/84 - 4.1.3 Changes to income models over the …

4.1.3 Changes to income models over the last five years

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 25/84 - a) Larger organisations (over �750k) Lar…

a) Larger organisations (over �750k) Larger organisations have seen significant shifts from grants to contracts over the last five years.These organisations are more likely to have the skills and capacity to respond to tenders and meet often onerous requirements. Social enterprise income has also grown slowly. In overall terms, income in this group has increased by 34%.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 26/84 - b) Medium sized organisations (�250-�750…

b) Medium sized organisations (�250-�750k) While medium sized organisations have seen grants fall from 42% to 31%, increases in the proportion of income have largely come from rental and room hire, as well as smaller increases in contract and social enterprise income. Overall income has largely remained at the same level.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 27/84 - c) Smaller organisations (�100k to �250k…

c) Smaller organisations (�100k to �250k) As with the medium organisations, the reductions in the proportion of grant income have been offset by increases in rental, fees and social enterprise income. This is a positive response to the reduction in grant income and is responsible for the overall increase of an average �23k income in this group.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 28/84 - d) Micro organisations (under �100k) Mic…

d) Micro organisations (under �100k) Micro organisations have been significantly impacted by the reduction in the levels of grant. Whilst some of this has been offset by modest increases in building income and fees for services, in overall terms income for micro organisations has on average fallen by 38% over this period.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 29/84 - 4.1.4 Difficulties faced by community hu…

4.1.4 Difficulties faced by community hub organisations

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 30/84 - Smaller organisations often operate at m…

Smaller organisations often operate at minimal staffing levels, and while this can keep expenditure within affordable boundaries, it also frequently means that skills and capacity are limited, impacting fundraising, tendering for contracts, financial management, strategic planning, service levels and potential for sustainability and growth.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 31/84 - 4.4 Profitability

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 32/84 - 4.4.2 Profitability according to size of…

4.4.2 Profitability according to size of organisation

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 33/84 - 4.5 Reserves

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 34/84 - Charities should hold sufficient free re…

Charities should hold sufficient free reserves to meet their continuing needs and to cover specific areas of risk. It is the responsibility of trustees to establish a policy for the level of reserves to be held, and to review and monitor these on a regular basis. Many organisations in the charity and community sector have stated

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 35/84 - Increase in free reserves

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 36/84 - Our findings:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 37/84 - Income for 2017/18 Shown by whether a co…

Income for 2017/18 Shown by whether a community hub owns a building (freehold or long leasehold)

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 38/84 - 5.3 The impact of assets on profitabilit…

5.3 The impact of assets on profitability

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 39/84 - 5.4 Difficulties with asset ownership

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 40/84 - Our findings:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 41/84 - The table therefore suggests that possib…

The table therefore suggests that possible success factors for profitability of community hub organisations may include:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 42/84 - there are costs of keeping a building op…

there are costs of keeping a building open for longer periods, especially when it is only partially used, or if the whole building needs to be opened up and if insurers require that a paid member of staff needs to be on site. Even when insurers do not require this, it is not always possible to rely on volunteers. However, in some cases (e.g. for wedding parties) it is possible to introduce an agreement which requires that the hirer provides security.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 43/84 - � Funded: activities which are fully fun…

� Funded: activities which are fully funded (by grants, contracts, trading);

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 44/84 - Apart from one, all had income of betwee…

Apart from one, all had income of between �100k and �750k in 2017/18, although four had incomes below �40k just four years ago. Hence, although a small sample, the ten reviewed include a mix of smaller and medium-sized community hub organisations. The main characteristics were:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 45/84 - 6.8 Tactics and tips for survival and su…

6.8 Tactics and tips for survival and success

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 46/84 - 6.8.3 Provide things which people value …

6.8.3 Provide things which people value and will pay for

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 47/84 - 6.8.5 Run a tight-ship with excellent fi…

6.8.5 Run a tight-ship with excellent financial data and an eagle eye

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 48/84 - 6.8.7 Build a positive team and embrace …

6.8.7 Build a positive team and embrace change

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 49/84 - Our findings:

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 50/84 - accounting standards, and very few state…

accounting standards, and very few stated their free reserves.This can have a real impact on trustees, stakeholders and funders understanding of the organisation, and indicates a lack of competency among auditors and independent examiners working with this sector.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 51/84 - 7.3 Professional expertise

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 52/84 - Stories of survival and success

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 53/84 - The challenges

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 54/84 - It is also developing plans for a new co…

It is also developing plans for a new coaching service for community groups across the region to help them improve their bid-writing skills.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 55/84 - is sound.The Trust believes `it has done…

is sound.The Trust believes `it has done well to keep it going and that this was `a good investment by the Council.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 56/84 - 8.3 Heeley Trust

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 57/84 - it has been able to undertake worthwhile…

it has been able to undertake worthwhile activities in this way, this has been a difficult path to follow. Many contracts are short term (some as little as ten months), the processes are bureaucratic, and the contract prices do not allow full cost recovery.The Trust has been required to operate in a competitive market where it has to absorb all the risk with little protection from predatory behaviour; in one case a delivery model designed by the Trust was handed by public sector commissioners to competitors.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 58/84 - 8.4 Ripon Community House

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 59/84 - Plans for the future

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 60/84 - activities, including a caf� (run as an …

activities, including a caf� (run as an independent business by a local resident from the estate), as well as room hire for conferences, training and office space. Spend was �466k, of which around half was on delivery staff.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 61/84 - She has also found that it is important …

She has also found that it is important to involve people, to `keep everyone engaged in some way, and then it isnt just one or two people doing everything, but all of us.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 62/84 - The challenges

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 63/84 - It is also possible to look to others fo…

It is also possible to look to others for advice.`It is never necessary to reinvent the wheel, as the business manager points out. Community enterprises are better connected than in the past, she feels, and there is a network of over 400 communityrun village shops, run by the Plunkett Foundation.`There is always someone, somewhere, with the experience or ideas which will help.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 64/84 - at March 2018 were �33.5k, up from �23.5…

at March 2018 were �33.5k, up from �23.5k at the end of the previous year.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 65/84 - A recent evaluation has shown that this …

A recent evaluation has shown that this model is already producing benefits. It gives stakeholders a structure to give their work focus, and partners feel more able to align their organisational priorities to those of the neighbourhood.There is increased trust among consortium members, with joint funding bids and more sharing of information. Residents have already noticed some positive changes, for example, in health and well-being activities, with improved outcomes for physical health, improved mental health and decreased isolation.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 66/84 - The Welcome has achieved national recogn…

The Welcome has achieved national recognition. It was awarded the Prime Ministers Big Society Award in 2011 and the Queens Award for Volunteers in 2013. Its patron is George Osborne, former Chancellor of the Exchequer, who has been a supporter and advocate for the centre since his time as MP for Tatton.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 67/84 - kitchen facilities and the manager sees …

kitchen facilities and the manager sees the possibility of establishing a social enterprise, with local people producing food products on the estate and marketing and selling them far and wide, generating surpluses which can be applied for community benefit. However, raising funds will continue to be a challenge.To help with this, the charity aims to build up more evidence of the difference it makes to the lives of local people. But it will be important that the story it tells does not simply focus on the negative.`This is a vibrant, proud and strong community, says the centre manager,`and we need to find ways of attracting investment without doing local people down.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 68/84 - Appendix A

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 69/84 - share your data with others, and we wont…

share your data with others, and we wont identify you in any published report, without asking for your consent first.You can see our data protection policies here https://www. nealhoward.co.uk/our-gdpr-policy.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 70/84 - 11. If your hub is used mainly by a part…

11. If your hub is used mainly by a particular group of people please specify which group.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 71/84 - Main

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 72/84 - This is our This is

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 73/84 - 14. What non-financial support do you re…

14. What non-financial support do you receive? (Please tick any that apply)

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 74/84 - 19. Do you feel confident that you will …

19. Do you feel confident that you will be able to continue to run your community hub in five years time?

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 75/84 - Appendix B

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 76/84 - In terms of legal structure, 64% were co…

In terms of legal structure, 64% were companies limited by guarantee and registered charities, and 21% were unincorporated associations/village halls.

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 77/84 - List of organisations analysed

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 78/84 - 47 Kirkgate Arts 48 Lister Steps 49 Moor…

47 Kirkgate Arts 48 Lister Steps 49 MoorEnd Development Trust 50 Neston Community Youth Centre 51 The Welcome (Knutsford) Ltd 52 Trawden Forest Community Centre 53 Bechange 54 Castle Connections 55 Haslemere and District Community Centre 56 Ore Community Association 57 Sandford Talking Shop 58 Sunlight Development Trust 59 Training For Work In Communities (TWICS) 60 Wecock Community Association 61 Barton Hill Settlement 62 Brockweir and Hewelsfield Village Shop Association 63 Bradworthy Memorial Hall 64 Bridestow Village Hall 65 Butcombe Village Hall 66 Dalwood Recreation Trust 67 Exeter Community Centre Trust 68 Holbeton Village Hall 69 Ipplepen Village Hall 70 Knowle Village Hall 71 Peninsula Trust 72 Sidbury Village Hall 73 Sidford Social Hall 74 Southern Brooks Community Partnerships 75 St Werburghs City Farm 76 Swimbridge Jubilee Hall 77 The Lodge Action Sports Club 78 Windmill Hill City Farm 79 Worle Community Association 80 Wylye Coyotes Afterschool Club CIC 81 All Saints Action Network 82 Balsall Heath Forum 83 Birmingham Settlement 84 Brereton Big Local CIC 85 Colebridge Trust 86 Longbridge Childcare 87 North Smethwick Development Trust 88 Old Chapel Works CIC 89 Altofts Community and Sports Foundation Ltd 90 Arch-Way Project 91 Barca-Leeds 92 Burton Street Foundation 93 Friends of Wombwell Cemetery 94 Halifax Opportunities Trust 95 HEART - Headingley Enterprise and Arts Centre

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 79/84 - 96 Hebden Bridge Community Association 9…

96 Hebden Bridge Community Association 97 Heeley Trust 98 Luddenden Foot Community Association 99 Marsden Community Trust 100 Netherton Community Centre CiC 101 OPAL 102 Riccall Regen 2000 103 Ripon Community House 104 SOAR Community 105 Todmorden Community Resource Centre 106 Wincobank Village Hall Trust

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 80/84 - Appendix C

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 81/84 - Appendix D

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 82/84 - 80

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 83/84 - Community hubs: Understanding survival a…

Community hubs: Understanding survival and success 81

TPR-2019-07-Community hubs - Understanding survival and success.pdf - page 84/84 - How can community hubs be financially vi…

How can community hubs be financially viable? There are an estimated 1,650 community hubs in England, each of them providing an open and accessible space and vital services for local people.They vary in terms of size, ownership model, assets, staffing and income.Yet there is little information on how these facilities achieve viability and sustainability. Community hubs: Understanding survival and success attempts to fill this gap. Drawing on research with over 120 hubs and exploring the topic through 8 detailed case studies, this report provides useful insights into how those who run community hubs can achieve long-term financial sustainability.