Monday, 8 September 2014

Raising Finance by NGOs and Social Enterprises

Social Enterprises and Community Organisations

The Role Organisations Play
The community/voluntary organisations are seen as an important ingredient for Economic Regeneration of the community. The organisations could be of various types, which are usually formed to combat the social exclusion or to address a specific need, which is not served by the mainstream organisation. At times these organisations are formed to work in partnership with mainstream organisations, or could also be facilitated/assisted by mainstream organisation/institutions as an advisory group.

The Government, local Authorities and various trust and charitable organisations have recognised the contribution which can be made by such organsiations and are willing to help and support organisations that meet the following criteria.


1. Name, Aims and Objectives
The organisations need to be specific in their role. (It could be a sole purpose of the organisation, or it may be a sub-division of an established organisation). The organisation/Project needs to have a name and clear Aims and Objectives.

Your Vision and Strategic objectives require to be further elaborated as set of Operational Objectives for each strategic objectives. This will further require information on how, cost, who is responsible and time framework.

2. Services/ Products

The organisation needs to be specific about services offered in terms of units as outputs. The strategic objectives need to be further broken into operational outputs, milestones and form of measuring performance.

It is acknowledged that these organisations do offer an important service to their members and need support as small enterprise. However it is important that you demonstrate that your organisation is in contact with your members whom you represent and there is a procedure for membership and committee selection.


3. Membership
The organisation/project needs to be clear and specific in who are their members. There must be a good database. You might have to conduct a survey to establish the accurate need of the members or the users of the service.


3. Type of organisation
The organisations need to be clear about the structure in which it will operate. It needs to have clear Terms of reference/Aims and Objectives, working together as per constitution, or operating as a company limited by guarantee. The other options would be co-operatives, community enterprise, social enterprise etc. In addition, the organisation may also consider to be a registered charity.

4. Constitution, Articles of Memorandum and Governance issues
A constitution or Articles and Memorandum for the limited companies by guarantee will have to show the Name, Vision, membership, committee/board selection process, Election/Nomination to the committee/Board, Length of Service, Election of Chair and Vice Chair, Register of Interest, Absence, Meetings, Annual General Meeting, Sub groups, Changes to constitution, Code of conduct for Committee/Board Members.

The Governance issues are required to be discussed and adopted by the board/committee members so that the everyone is clear about their responsibilities and contribution expected from them individually.

5. Strategic / Business Plan
The organisation will need a Strategic / Business Plan, which will be a complete description of the business and its plans for the next 1-5 years. It explains what the organisation does (or will do), outline who are the customers/clients and what services are offered. What research has taken place and provides a rationale for why the services are needed. The plan will also include financial forecasts and indicates how much money (if any) is needed.

Organisations strategic / Business plan can be thought of like a road map- the destination is defined (in other words the strategic objectives) and the plan then acts as the route plan for getting there. The Business Plan should be revised each year, including setting targets and preparing financial forecasts. This should be done regardless of whether the organisation needs to raise extra money.

The Strategic Planning workshops with Board/Committee members and Key staff would be a better format to prioritise the actions, prepare action plan and assign individuals with responsibilities.

The advantage of strategic planning is the Board members and the key staff will carry the same vision and will have discussed and agreed plan to work upon. The roles and responsibilities will be clearly defined and progress can be discussed on regular basis.

Content of a Strategic/Business Plan will have to follow in logical order. Starting with an Executive summary, organisation details (legal status, mission, objectives, history to date, how it performs compared to competitors, financial background, major accomplishments and key members of staff.

A description of products or services, what are the advantages of the products, services, what needs does it fill, details of statutory requirement if required, suppliers.

What is estimated demand for the service in short term and long term. Why is this demand expected? Who are the target customers, how does the service compare with the competitors, any distinctive competitive advantage must be highlighted.

The plan needs to illustrate the basis of how it is intended to promote the organisation to ensure success in generating sales or raising awareness for the service. Details of target market, advertising and promotion.

The plan will demonstrate how the organisation will run in order to be successful. Premises, equipment, service process, personnel requirements, safety and quality standards etc. The plan will also show the strength of the people involved. If there are any apparent weakness, how they will be overcome? Brief CV details including age, education, experience etc.

The final section would be the financial information. Past and present financial history. Costing and pricing information, financial forecasts including details of financial requirements, which will include how much is needed, when and from whom etc.


6. What help is available?
The organisations can receive assistance with all the above aspects. The organisations mentioned below would be your first point of contact. They will be able to advice you or make financial payment to your organisation. The assistance can be:
  • Towards the salary of the development worker, other employees, who will carry out the specific identified task, this would be as a core funding for capital and revenue expenditure.
  • Payment for an external consultant who could be appointed to carry out specific task. This could be either for writing a development plan, facilitating committee development event, capacity building of organisation, carry out research, assist with constitution development or marketing of the organisation.
  • Specific payment for single items of capital expenditure, where clear need has been justified.
7. Can we Deliver Service?
If the organisation is constituted and can demonstrate ability to deliver service, it can get involved in variety of service provisions. This will depend on organisations aims and objectives, location, interaction with the clients/customers. The organisation may choose to get involved in contractual agreement to deliver a service on behalf of institutions and government departments such as:
  • Education and Training provision
  • Training and Business Support signposting
  • Advising the disadvantage
  • Delivery of specific service for young, elderly, unemployed, women etc.
  • Career advice, preparing unemployed for jobs, Skills improvement courses
  • National Health Trust and Health Authorities will work closely on health related projects. Disabled, elderly, people with mental health and alcohol and drugs related projects could forged close links with these organisations.
  • Other units such as Crime Prevention and Environmental agencies would work closely with such organisations too.
With any of the contractual delivery the organisation will have to provide clear measurable outputs. This will assist funding organisation in terms of what are they getting for the money and value for expenditure can be measured.

8. Which organisations can help us?
The assistance can come in form of co-finance for Revenue expenditure against which certain minimum outputs are expected, or it could be linked direct to the delivery as either payment on outcome or even stage payment.
  • In your Local Authority, the Community Development department will be responsible for developing organisations. There would be other departments such as Social Services and other departments, who would contract with you for the service delivery.
  • Employment service, Carers advice, Learning and Skills Council, Chamber of Commerce and Business Links would also be potential partners to work with and this would be to the specific projects.
  • Community and Voluntary organisation councils and provide you advice on regional and national basis related to voluntary organisations.
  • Enterprise and co-operative agencies will assist you with Business Planning and signposting towards grants.
  • National organisations/ councils, or larger charity associations
  • Community Funds (Lottery funds) and other fund giving trusts etc.
Hope this information prepares your organisation to make a good application to develop and fulfil the important role of community regeneration. If you need assistance with any of the above tasks under consultancy agreement, we will be able to submit our Terms of Reference for the job.

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