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
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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
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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
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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
Legal Types
0%
5%
9%
Community Interest
Company
Company (Other)
47%
35%
4%
Company Limited By
Guarantee
Company Limited By
Guarantee/
Registered Charity
Income
Up To £20,000
12%
£20,000 - £50,000
10%
47%
20%
£50,000 £250,000
Over £250,000
Over £1 million
11%
FTE Employees
5%
None
7%
1 to 5
7%
42%
9%
6 to 10
11 to 20
21 to 50
30%
Over 50
Volunteers
16%
5%
23%
15%
17%
24%
None
1 to 5
6 to 10
11 to 20
21 to 50
Over 50
Primary Client Groups
Beneficiary Group
People of Faith
Children
Young People
BME
Older People
People with Health issues
General Public
Disabled People
Other
Tenants And Residents
Women
Voluntary And Community
Groups
Families / Parents
Refugees / Asylum Seekers
Total
Total (Primary Client
Group)
223
127
117
114
107
Percent of Sector
17%
10%
9%
9%
8%
103
99
98
97
65
44
8%
8%
8%
8%
5%
3%
38
34
19
1285
3%
3%
1%
100%
Scope of Activity by Locality
Service Area
Adult Care and Support
Advice and Financial
Inclusion
Arts and Culture
Children
Communities and Localities
Crime Prevention and
Reduction
Economy and Enterprise
Education and Training
Environment
Faith
Health and Wellbeing
Housing
Infrastructure Support
Other
Vulnerable Older People
Total
Percent
East
North
East
West
North
West
South
East
Total
5
8
7
20
9
62
12
58
18
65
33
49
10
95
31
61
37
222
76
168
1
4
16
14
52
32
44
0
16
12
337
28%
1
2
21
16
50
61
38
18
21
20
421
35%
3
4
23
19
70
33
35
2
21
16
430
36%
5
10
60
49
172
126
117
20
58
48
1188
100%
Opportunities
 Community rights and localism – new funds
 New funding from Clinical Commissioning Groups –
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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
Sources of Income
120000
100000
80000
60000
2013/4
2014/5
40000
20000
0
Training &
Workshops
DVD &
Resources
Research &
Consultancy
Grants
Total
Client Groups ( Leeds and Nationally)
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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 relaunch
 Other courses on social issues on demand
Clients we’ve worked with
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 relaunch
 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
Mobilisation
Collaboration
with Other
Charities
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
COMMUNITY SHARE AND BOND/LOAN
STOCK ISSUES
www.wrigleys.co.uk
Tel: 0113 244 6100
Peter Parker
Charities 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 cooperative (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