Introduction Funding for mentoring and befriending Impact of spending cuts on the survival and sustainability of projects across the UK Funding survey 2011 MBF Funding survey report 2011 1 Headlines 72% of projects feel that the spending cuts are likely to have an impact on their project during the next financial year (April 2011 – March 2012) compared to 44% in 2010-11. 62% of projects saw a greater demand for their service from users over the last financial year. Next year this is set to increase with 79% anticipating greater demand for their services. 40% of projects expect to have to make staff cuts in 2011-12 with 26% anticipating reducing the number of service users they support. 53% of projects anticipate an increase in volunteer applications to their project over the next financial year. 73% of projects said that they thought having a quality standard for their project strengthened their application or opportunity to gain funding. In response to the cuts, projects are developing a number of strategies which include new approaches to fundraising, exploring alternative sources of funding, improving outcomes monitoring, increased partnership working and raising awareness of their project through increased marketing and promotion. “I do worry that the way things are going, there are going to be a lot more vulnerable children, young people and families who will receive far less support than before” Mentoring project working with young people at risk of offending MBF Funding survey report 2011 2 Contents Introduction 4 Summary findings 5 Comparison of findings 7 Full report findings: 8 - Funding information: running costs, funding received and unit costs Impact of spending cuts and changed funding climate Impact on service users and volunteers Quality standards and relationships with funders Main challenges facing projects in an uncertain funding climate Strategies for responding to these challenges including fundraising Good practice tips Further support and training needs Conclusion Appendices - 8 9 10 10 11 13 15 17 18 Appendix 1: Mentoring summary Appendix 2: Befriending summary Appendix 3: Survey data MBF Funding survey report 2011 19 21 23 3 Introduction 2010 saw the government introduce the biggest planned spending cuts in the UK for decades and in this, our third report in our annual series of funding surveys, we asked mentoring and befriending projects about the implications and impact of the cuts – both as they are affecting them now and how they see them affecting them in the future. We invited mentoring and befriending projects to complete an online survey during February and March 2011 and responses came back from 144 projects working with a wide range of client groups. future sustainability of mentoring and befriending projects. Note: the survey data was analysed to show the results from both mentoring and befriending projects separately so that we could identify differences and trends between the two approaches. A combined average was also calculated to show the overall picture which is in general the figure used in this report unless otherwise specified. The data tables in the Appendices on pages 23-28 illustrate this data breakdown. The views that projects share with us help us to expand our knowledge of the funding environment facing mentoring and befriending projects, year on year. This enables MBF and others to better respond to the information and support needs of projects. This year‟s survey also asked projects to share with us some elements of good practice around funding and fundraising activity which we hope will provide a useful source of information for other projects facing similar funding challenges. For the first time, this year‟s survey was promoted to mentoring and befriending projects working across the UK (not just in England). The following organisations kindly promoted the survey to their networks – Scottish Mentoring Network, Befriending Network Scotland, WCVA (voice of the voluntary sector in Wales) and Volunteer Now (a leading volunteering organisation in Northern Ireland). We would like to thank all the organisations and projects that gave their time to both promote and complete the survey – all their experiences and funding information will help us to support the MBF Funding survey report 2011 4 Summary findings Funding information Most mentoring and befriending projects support between 25 and 50 volunteers and provide a service to more than 50 service users annually. The length of time projects have been running reveals that just over half of all projects (51%) have been running for longer than five years with 29% running for between two and five years and 11% for less than a year. Funding received Most projects receive their main source of funding from a local authority (32%) followed closely by projects funded from a charitable trust/lottery (26%). Fewer projects receive their main funding from donations (6%), the private sector (4%) and from an NHS Trust / PCT (3%). The level of funding received by the majority of projects (46%) is up to £25,000 per year with another quarter (26%) receiving between £25,000 and £50,000 per year. Unit costs Of those projects that have calculated a unit cost for their service (the total cost of supporting one service user) a wide cost range was identified, this was not surprising as services differ in the level of support offered and delivery methods used. Unit costs for projects working with older people ranged from £80 to £900 per service user and projects working with offenders and those at risk of offending ranged from £120 to £4000. Impact of spending cuts and changed funding environment Just under half of projects (44%) said that the introduction of spending cuts by the government had an impact on them during the last financial year (April 2010 - March 2011). However this figure increases to 72% of projects who feel that the cuts will have an impact on them during the current financial year (April 2011 - March 2012). MBF Funding survey report 2011 Just under a third (32%) have made cuts to their project as a result of spending cuts during the last financial year with 87% of these projects making staff cuts, 48% reducing the number of service users supported and 39% reducing their number of volunteers. Looking ahead, 40% of projects anticipate having to make staff cuts over the next financial year with 26% anticipating reducing the number of service users they support. Overall, 44% of projects expect their situation to worsen over the next financial year with 14% predicting it will improve. Many projects expressed deep concern that if they are unable to secure funding then the beneficiaries and volunteers of many services will suffer a severe blow leading to a detrimental impact on society as a whole. This view was shared by projects working across all ages and client groups. Projects also say that there is a growing expectation that projects will need to do more with less money. Impact on users and volunteers Sixty two per cent of projects saw a greater demand for their service from service users over the last financial year and 79% anticipate greater demand in the coming financial year. Forty four percent saw an increase in volunteer applications to their service over the last financial year with 53% anticipating seeing more volunteer applications in the current financial year. Quality standards and relationship with funders Almost three quarters of projects surveyed (73%) said that they thought having a quality standard for their project strengthened their application or opportunity to obtain funding. Of the projects surveyed, the most popular quality standards they 5 Summary findings have obtained are as follows: 63% have achieved the MBF Approved Provider Standard (APS), 23% have achieved Investors in People and 10% have Investing in Volunteers. Around half (48%) of projects rate the level of understanding and awareness of mentoring and befriending by their main funder as either „good‟ or „excellent‟. There is some evidence of changes in demands being made by funders as 56% of projects tell us that they have seen an increase in demand to provide evidence of outcomes, 28% see an increased demand for partnership working and 24% see an increase in demand for social impact reporting from funders. Main challenges facing projects in an uncertain funding climate The most pressing problem that projects tell us they face in this uncertain funding environment is the severe impact that spending cuts are having on them. Many tell us that they are closing due to complete loss of funding while others are using their reserves in order to survive in the short term. This is felt to be due largely to there being less funding available from local authorities and charitable trusts as well as the growing competition for funds. A substantial knock on effect from this is the inability to plan long-term due to funding uncertainty and projects feel that this impacts severely on their future sustainability. Another trend identified by many projects is that staff are managing a higher number of relationships which leads to less time available for other work. Some projects are re-prioritising and offering their service to fewer service users than before. There is also a feeling by some projects that they are increasingly unable to support those who are most vulnerable. Another significant problem is the loss of many projects‟ partner organisations through the cuts leading to impact on referrals, ability to signpost users on and a reduction in the number of other support networks. Strategies for responding to these challenges Projects are developing strategies to deal with these issues which include increased partnership and collaborative working; more business planning; reviewing costs; restructuring, reducing or developing services in new ways; increased trading; more fundraising and promotional activities. Good practice tips Projects shared a range of good practice tips around developing new approaches to fundraising, successful fundraising activities, working with volunteers and service users and impact measurement. You can read all their suggestions on pages 15 to 16. Read the report’s full findings on pages 8 to 18. Challenges are also being faced by projects needing to retain staff in the face of budget cuts while keeping morale and motivation high. This is proving difficult when staff have no certainty over their future employment. Many projects are also facing challenges with their volunteer management and are offering less support and reducing numbers. MBF Funding survey report 2011 6 Comparison of findings We have undertaken a comparison of this year‟s funding survey responses with those we received last year to identify any significant changes in responses. We recognise that it is difficult to compare year on year but the following reveal a few interesting facts: Although the majority of projects still have annual running costs of less than £25,000, more befriending projects told us this year that their annual running costs are higher between £25,000 and £50,000 (39%) as opposed to 28% last year. The main source of funding for most projects is still from local authorities although this percentage is down on last year – from 46% to 32%. There is an increase in projects receiving their main funding from a charitable trust/lottery – up from 22% last year to 26% this year. Similarly, 39% of projects in this year‟s survey reduced their volunteer numbers compared with 3% last year. Whereas no projects surveyed last year had merged, 4% of projects had this year. Numbers of projects expecting their situation to worsen over the next financial year increased to 44% this year compared with 30% of projects in the last survey. The trend which we saw last year showing increased demand for the service from users continues to rise with a figure of 62% this year compared with 58% last year. Some changes to projects‟ additional sources of funding show that last year 31% of projects got this through fundraising activities whereas this has increased to 41% this year. Also, trading accounts for 8% of additional sources of funding compared with just 2% last year. The cuts made by projects in this financial year are substantially greater than shown in last year‟s survey with 87% making staff cuts this year as compared with 16% last year. Again, 48% reduced the number of clients they supported this year in comparison with just 7% in last year‟s survey. MBF Funding survey report 2011 7 Full report findings See the Appendices on pages 23-28 for all data. both mentoring and befriending projects totalling costs of over £500,000. Funding information Profile of projects surveyed Overall, 144 mentoring and befriending projects responded to our third annual survey, split evenly between mentoring (51%) and befriending (49%) projects and supporting over 16 diverse client groups ranging from older, socially isolated people to looked after children and young people to individuals with a mental health problem and students in educational settings. For the first time, our survey reached out to projects working in or across all four countries of the UK and the breakdown of projects who responded was: 92% of projects are working in England, 10% in Scotland, 7% in Wales and 4% in Northern Ireland. We hope to build on this in future surveys. Most mentoring and befriending projects support between 25 and 50 volunteers and provide a service to more than 50 service users annually. The length of time projects have been running shows that 51% have been running for longer than 5 years with 29% running for between two and five years, 11% for less than a year and 9% for between one and two years. Running costs We asked projects about their annual running costs and the survey shows that overall 40% of projects have annual running costs of up to £25,000. However there is some variation between mentoring and befriending projects with 48% of mentoring projects fitting into this category compared with 32% of befriending projects. A higher number of befriending projects (39%) have annual running costs of between £25,000 and £50,000 with 26% of mentoring in this category. Sixteen per cent of mentoring projects receive between £100,000 and £250,000 with just 2% of MBF Funding survey report 2011 Funding received Just under a third of all projects (32%) receive their main source of funding from a local authority, just over a quarter from a charitable trust/lottery (26%), 6% from donations, 4% from the private sector and 3% from an NHS Trust/PCT. The amount of main funding received by the majority of projects (46%) is from £1 to £25,000 with around a quarter (26%) receiving between £25,000 and £50,000. Most projects (38%) state that their main source of funding is for one year, 20% receive it for three years and 18% for less than one. As well as their main source of funding, the most common additional sources of funding are from donations (56%), fundraising activities (41%), charitable trust/lottery (33%), local authority (30%), NHS Trust/PCT (10%) and trading activities (8%). We asked projects that receive local/central government funding (37%) to tell us what proportion of this funding contributes to their overall total funding. Forty four per cent receive 100% from local/central government funding, 15% receive between 90-99%,16% between 40-59% and 24% between 1-20%. Unit costs We asked projects that have calculated a unit cost to share this with us. Not surprisingly, we found a wide range of unit costs depending on the client group, intensity and level of support offered and delivery methods used. Unit costs from projects working with older people ranged from £80 to £900 per service user, projects supporting looked after children ranged between £400 to £500, projects based within educational settings were calculated as being as low as £5 to £600 and projects working with offenders and those at-risk of offending ranged from £120 to £4000. 8 Impact of spending cuts and changed funding climate Impact of spending cuts and changed funding climate We asked projects whether the spending cuts had made an impact on them during the last financial year (April 2010 - March 2011) and there was a fairly even response to this with 44% saying that they had, 52% saying that they hadn‟t and 4% that they did not know. However, when asked if they felt the spending cuts were likely to have an impact on their project during the next financial year (April 2011 - March 2012), then 72% of projects said yes, 15% said no and 13% did not know. reducing the number of volunteers used and 10% looking to merge with another organisation. When asked about the possibility of their project expanding over the next financial year, 45% did not anticipate this. Of those that did think expansion likely, 45% anticipated an increased number of clients supported, 40% an increase in their volunteers and 13% an increase in staff. Forty four percent of projects expected their situation to worsen over the next financial year, 43% felt it would stay the same and 14% of projects felt their situation would improve. Of those projects that receive statutory funding, 31% had their funding cut during the last financial year and 38% stated that their funding level had stayed the same during this period. For others it was the first time that they had received statutory funding. Just under a third (32%) of projects have made cuts to their project as a result of spending cuts during the last financial year and of these, 87% have made staff cuts, 48% reduced the number of clients they support, 39% reduced the number of volunteers they utilise and 4% have merged with another organisation. Of the 68% of projects who did not have to make any cuts, 51% had not experienced any project expansion. However 38% had increased the number of clients they support, 34% had increased their number of volunteers used and 11% had increased their staff. Asked about the likelihood of cuts over the next financial year (April 2011 - March 2012), 46% of projects felt that no cuts were likely. Of the 54% that did think cuts were likely, 40% were anticipating having to make staff cuts, 26% looking to reduce the number of clients supported, 22% MBF Funding survey report 2011 “As far as my projects are concerned and unless the cavalry make a last minute appearance at the top of the hill, it may be a case of “Goodnight Vienna” and for the last one to leave the building to turn out the lights!” Mentoring project working with those at risk of offending 9 Impact on service users | Quality standards and relationships with funders Impact on service users and volunteers Quality standards and relationships with funders Sixty two per cent of projects saw a greater demand for their service from users over the last financial year (April 2010 - March 2011) with just 2% seeing less demand and 37% seeing no change. Looking to the current financial year (April 2011 - March 2012), 79% of projects anticipate that they will see greater demand from service users with just 4% anticipating less demand and 18% seeing no change. Almost three quarters of projects (73%) said that they thought having a quality standard for their project strengthened their application or opportunity to obtain funding, 5% didn‟t think that it did and 23% didn‟t know what the impact of having a quality standard was. An increase in volunteer applications was seen by 44% of projects over the last financial year with 46% seeing no change. Projects anticipate that in the current financial year, 53% will receive more applications, 9% will receive fewer applications and 38% foresee no change. Of the projects surveyed, 63% have achieved the Approved Provider Standard (APS), 23% have achieved Investors in People, 10% Investing in Volunteers, 8% PQASSO, 6% Matrix and 21% of projects do not have any quality standards. When asked to rate their main funder‟s level of understanding and awareness of mentoring and befriending, 48% of projects rated it as either „good‟ or „excellent‟, 37% rated it as „quite good‟ and 15% as either „poor‟ or „very poor‟. We also asked whether projects had seen an increase in demand from funders across a number of areas and 56% had seen in increase in demand for providing evidence of outcomes, 28% had seen an increased demand for partnership working, 24% in more social impact reporting, 5% through payment by results and 2% an increase in promoting their funders‟ profile. Overall, 41% had seen no change in their funders‟ demands. “Demand is increasing because befriending is now recognised by others as very helpful, and because of cuts in health service provision” Befriending project working with people with mental health problems MBF Funding survey report 2011 10 Main challenges facing projects in an uncertain funding climate Main challenges facing projects in an uncertain funding climate The survey asked projects to identify the top issues or challenges that they face around funding or spending cuts. The most frequently expressed are shown below: 1. Funding levels and statutory cuts The survey showed the full impact of the current funding climate with several projects telling us that they are closing due to complete loss of funding and others that are currently using their reserves to ensure survival in the short-term yet uncertain as to whether they will gain more funding to continue. For those projects that are managing to survive, one of the major implications of facing reduced levels of funding or cuts is being unable to plan long-term which threatens their overall sustainability and the opportunities that they are able to take forward. Many projects mentioned the challenge of facing greater competition in seeking funding, of which there is less available. a) Local authority cuts: projects stated that overall there is less funding available from local authorities with some services being reduced or cut which is having a knock-on effect on them. Some projects are also seeing increasing targets even though their resources have been cut. This is often combined with high expectations and pressure to plug the gaps left by stretched statutory services. Another trend mentioned by a number of projects was that some local authorities seem unsure about their own budgets or unclear about how they are going to distribute the money or how to utilise services such as befriending. There was MBF Funding survey report 2011 also some fear expressed about the threat and likelihood of being undercut by a larger organisation as local authorities look to buy in services. b) Education cuts: those projects that work within the educational sector highlighted to us some specific challenges that they are experiencing. This includes the spending cuts to university funding combined with a higher expectation that Higher Education institutes will fund mentoring and befriending work from their own resources in future. It was also felt by several projects that budget cuts to schools will threaten the future of projects. c) Health cuts: several projects mentioned the impact that the large-scale NHS reforms are having and the uncertainty of NHS funding for the future leading to an inability to mainstream due to the uncertainty of commissioning within health and social care services. 2. Charitable Trusts and Foundations funding Projects highlighted the changing climate around applying to charitable trusts and foundations with several experiencing a greater number of unsuccessful applications due to greater competition. Also, a number of projects recognise that trusts are overstretched financially themselves and are reducing their grant availability – possibly due to the current low interest rates that exist due to weak economic recovery. Also, that fewer trusts want to fund continuation work and wish to support new projects. 3. Forward planning and sustainability A knock on effect of the uncertain funding climate is that projects face greater uncertainty over their future and are finding it difficult or impossible to plan ahead. One project talked about having to 11 Main challenges facing projects in an uncertain funding climate „firefight‟ rather than commit to long-term planning and another faces a dilemma over whether to start a new partnership due to lack of future sustainability. A few projects mentioned the time that it takes to complete bids resulting in a challenge to undertake other work plus an increasing amount of time and resource is spent fundraising than was previously necessary which diverts staff resources away from service provision. 4. Retention of staff and volunteers Projects are facing new challenges around retaining staff in the face of budget cuts. Working under threat of redundancy is faced by many workers leading to staff insecurity causing specific challenges for project managers in keeping morale high and motivating staff who may be facing uncertainty about their employment. Another trend is an increasing number of projects feeling the pressure to take on more work and increase their client base while reducing costs. It is also noted that some projects are finding it difficult to recruit volunteers and others have lost valuable and well-trained volunteers due to them being made redundant from work and having to relocate or spend more time looking for new work. Many projects are offering less support to their volunteers than before and cutting down on the number they use due to the cuts. The cost of activities for young people and volunteers is proving prohibitive for some projects while others are creating more rigid outcomes for volunteers to help cope with budget restraints. 5. Supporting service users Several projects are faced with not being able to offer as many relationships in the next financial year yet are seeing increased demand from clients due to reduced statutory services. MBF Funding survey report 2011 Some projects are re-prioritising and only offering their service to high-priority service users. A project working with homeless people predicts increased demand due to increased homelessness. Many projects feel that they are increasingly unable to support those who are most vulnerable. 6. Impact of cuts in other organisations A consistent message that came through was the impact of the reduction in partnership working through cuts being made to other agencies and organisations. Also, where projects exist within larger organisations and where cuts have been made this is having an impact on referrals. There is also concern at the loss of networks and partnership goodwill as well as a lack of appropriate specialist agencies to refer on to. 7. Training and quality standards Several projects told us that they haven‟t enough money to attend courses such as the ones that MBF run and overall have less money for training staff and volunteers. With less funding, training may prove more difficult and inadequate training may affect the standard of the service provided. Another project mentioned that a particular challenge for them is to ensure that funding is available to enable them to work towards the Approved Provider Standard. 8. Communicating impact Challenges around communicating the impact of their project effectively are being felt and included comments about the most effective ways of evidencing outcomes from outputs and in particular the evidencing soft outcomes to funders. A growing number of projects are also looking to find out more about undertaking cost benefit analysis and service evaluation as part of improving their overall approach to impact communication. 12 Strategies for responding to challenges Strategies for responding to challenges We asked projects to tell us about any strategies or plans that they are implementing to help them respond to this challenging funding environment. The following are some of the strategies that are being put in place which may be useful for other projects facing similar challenges: Increased partnership and collaborative working in order to access a larger client base, to combine volunteer efforts and to share back office services. Increasing support to other agencies to help them protect their funding streams was also mentioned by one project. Exploring merger with other organisations has been found necessary for some projects in order to secure funding and has been seen as useful for sharing resources, contacts and crossreferrals. Business planning is an increasing activity for many projects as well as accessing free business advice. Reviewing costs is another key strategy for projects as they look to scrutinise their spending with a view to making efficiencies and cutting expenditure. Restructuring has been a necessity for several projects including a review of job descriptions with a view to possibly making redundancies and scaling back service provision. Some projects are looking at changing volunteer roles and the opportunities they offer as well as looking for more voluntary input in general. Others are looking to develop their service in new MBF Funding survey report 2011 ways and increase their range e.g., one project is targeting GP practice managers to try and embed their service within social care provision. Charging – several projects are considering charging for their service in the future which has previously and traditionally been free. This is seen as particularly challenging for befriending projects in terms of making the project attractive from a demand point of view as well as making it acceptable to volunteers who give their time freely. Trading and fundraising - one project is selling their training to others and another is looking to extend their social enterprise into new areas. Increased fundraising activities through events, applying for more grants and diversifying income streams. Marketing and promotion – attracting new service users and those from a different demographic is seen as important plus greater involvement in the local community to gain community support. It was recommended that a strategy should be prepared for this activity. Good internal communication was highlighted by one project which has found improving links with senior managers and those making strategy an important element for future sustainability. New ways of working (direct payments and cost benefit analysis) We also wanted to find out the extent to which mentoring and befriending projects are experiencing or dealing with direct payments or personal budgets as these are policies that are being encouraged by recent government policy. 13 Strategies for responding to challenges Around a fifth of projects (19%) told us that they had some experience in this area. When asked if they had done any cost benefit analysis (e.g., putting costs to outputs and measuring against other services), 54% of projects said they have not, 11% said they have and17% are planning to do so over the next year. Thirty one per cent of projects would like to but need further advice and guidance. a social enterprise, increasing their applications to charitable trusts and getting more involved with corporates and researching potential sponsorship from commercial sources. Developing service specific funding approaches is an approach being made by one project. Volunteers Sixty eight per cent of projects have engaged in new collaboration/partnership working over the last financial year, 36% have involved users in designing services, 21% have started to share back-office services and 11% have merged with another organisation. One project is putting a plan together to encourage their volunteers to raise funds from their local communities and a school project is encouraging their pupils to fundraise. Another is working with potential volunteers who have a background in fundraising or corporate entertainment to help them become more robust. Fundraising change of focus Time, resources and planning Projects were also asked in what ways they thought their fundraising activity might change or alter focus over the next financial year. It is generally acknowledged that fundraising will take more time for smaller returns and this will either lead to a reduction in the service being offered or see expansion of a project which aims to provide additional services alongside the mentoring or befriending service. One project is aware that they will need to spend more time on research to ensure that they find out about new funding streams. Also, greater planning and innovation will be called for so that projects can stand out in the competitive environment. Significant reductions are likely and the need to keep abreast of new developments in health and other policy areas is vital. Prioritising those who are most vulnerable will be key. Increase in fundraising activity A re-allocation of budgets for some projects will be essential as fundraising becomes a larger part of their activity. Some projects are keen to look at how they can support a fundraising salary. It is strongly felt that fundraising will be increased in all its forms to ensure sustainability and development. The importance of maintaining a high profile is seen as an important element of this. Generating income More projects will focus on generating their own income to reduce reliance on the overall amount required from funders. Some projects are looking at charging for their services and in particular looking at how this will work with individual personal budgets. Others are looking into becoming MBF Funding survey report 2011 “To be unable to secure funding will be a massive blow to the beneficiaries and volunteers of our service” Befriending project working with people with mental health problems 14 Good practice tips Good practice tips We asked projects to offer some good practice tips to other projects around working with funders, volunteers and service users, fundraising activity, and impact measurement. their money will benefit local people and communities. Setting up a social enterprise is also an increasing element of fundraising activity for projects with one befriending scheme now providing domestic help to clients at a charge. Funder relationships “Ensure that you are working to good practice and try to meet all your funders‟ requirements as well as adapting to any change of requirements as well as submitting reports in a timely fashion.” “Look at developing your service through adding new strands and additional services. This can provide funders with something „new‟ and potentially open up other sources of funding.” “Be flexible and look at ways in which you can work smarter (SMART goals stand for specific, measurable, achievable, realistic and time).” “Build up your service gradually year on year – it is better to provide a great service to a few rather than a poor service to many.” “Market your successes.” Fundraising Build a new fundraising approach Projects recommend being flexible, looking at all options and alternative sources of funding. This includes having a range of funders so that you are not reliant on just one source. If possible, applying for funds that give three year funding terms can act as a buffer from cuts in the future. There is also a renewed focus on community fundraising such as supermarket bag packing and targeting funders at a local level to outline how MBF Funding survey report 2011 One project found that fundraising for a unit cost focuses people‟s thinking and donors want to know that their money is having a defined effect. Another project was keen to stress that projects should have respect and understanding for the difficult position that many commissioners and funders currently find themselves in. Successful fundraising activities Some examples of specific fundraising that projects have found worked well are as follows: a charity dinner at a local hotel; a school negotiated free training workshops with a local children‟s bereavement service and in return they ran a fundraising event to raise money for the service; sponsored bike rides and walks with approaches made to organisations such as tesco and halfords for sponsorship; forging links with business; small-scale fundraising such as raffles. Applications and bids Although recognised as time consuming, several projects have applied to more funders than usual asking for smaller amounts. General advice from projects is that you need to increase your funding applications to new sources. Advice is also to very carefully consider the criteria for each application you make and ensure that your project completely meets it as this will avoid spending time drafting applications which won‟t get past the first post. 15 Good practice tips Investing in a part-time fundraiser is the answer for some projects and one has contracted a professional bids writer which they found useful. A tip from another project is to always ensure that when applying to grant making trusts, they meet at least one service user so that they get a sound idea of what the service does. Apply to local charities for a specific aspect of your project that only requires small scale funding. Outcomes and evidence Projects have found it helpful to solidify their approach to outcomes and evidence in order to stand a better chance of a successful funding bid. The provision of good evidence including case studies, hard evidence, personal stories and experiences, visual evidence and external evaluation has helped improve credibility with funders. Raising awareness and profile Event fundraising is found by many projects to be important in helping to raise public awareness of the work they do. from clients on why the service has been useful for them.” “To reduce the amount of people receiving the service, be more selective and respond to higher level need.” Impact measurement Produce an Impact Assessment of your service which gives clarity on who the beneficiaries are and what impact the service has upon them. For one project this allowed them to understand how to make better use of their data gathering to provide good evidence of outcomes and impact to funders. Ensure your impact is evaluated financially. One project told us that by completing the Approved Provider Standard quality standard process, it helped them to demonstrate the extent of the positive effect that the scheme was having. Funders are interested in outcomes as opposed to outputs and interested in sustainability of the project so try to evidence these aspects. Volunteers and service users “Support your mentors – meet regularly and give them opportunities to feedback and share their good practice.” “Train your volunteers very well and provide ongoing supervision.” Enhance your evidence collection with case studies and photographs. With permission, use quotes from service users in your advertising. Continuous monitoring and evaluation and use case studies to remind people of the good news stories. “Look at involving volunteers in running groups which can make the service cheaper.” “Ensure that your project meets the needs of your clients – do regular surveys and obtain evidence MBF Funding survey report 2011 16 Further support and training needs Further support and training needed Three areas were most commonly identified by projects as those where they needed more support and training to cope with the changing environment. These were: Personalised budgets and payment by results Projects urgently want help in understanding the possibility arising from personalised budgets and the impact of GP consortia. They also wanted access to payment by results programmes and Social Impact Bonds. Evidence and outcomes Projects specifically mentioned evidencing outcomes from outputs, how to write case studies, more information about cost benefit analysis, service evaluation and more input on Impact. - - advice and support to identify gaps and plan for the future; working out a budget for forthcoming financial year and seeing where cuts could be made; one project requested a mentor. Many projects also emphasised the importance of having access to free support and information due to their limited capacity to spend on training. There was also support for continued information about funding opportunities and context through our ebulletin. In addition, projects wanted local information about cuts and closures and how to apply for jobs if their position was made redundant. Fundraising Areas highlighted for support were training in community based fundraising, tender writing training, grant writing, developing alternative funding sources and strategies. Additional support needs Some more general support needs were also identified by individual projects and included: - wanting to be part of a bigger lobbying organisation which directly approaches funders who might support specific activities; - support in gaining charity status and governance documents; - how to downsize from a full case load if future funding not obtained; - appropriate challenges to „big society‟ idea; - networking events to share and learn from other organisations doing similar work; MBF Funding survey report 2011 17 Conclusion This year‟s survey has highlighted strongly the impact that spending cuts are having on the mentoring and befriending sector with just under half of all projects surveyed telling us that spending cuts are having an impact with around a third having made cuts to their project already. The concern for the beneficiaries and volunteers of mentoring and befriending services comes through loud and clear with many projects expressing concern that as more and more projects are squeezed and unable to secure funding in the future, then the impact on society will be immense. However, it is not all doom and gloom as many projects are continuing to survive by adapting their services, reviewing expenditure and looking for new ways to provide their services. We want to support and encourage projects through this difficult time and we hope the good practice highlighted within this report will support other projects. “We will not be beaten, our project has been recognised by Ofsted and the county and we will soldier on regardless. The staff are very supportive and the benefits to our school are wonderful” Peer mentoring school project MBF Funding survey report 2011 18 Appendix 1: Mentoring summary A summary of the survey responses made by mentoring projects Funding information Most mentoring projects support between 25 and 50 volunteers and provide a service to more than 50 service users annually. The length of time projects have been running reveals that 40% of mentoring projects have been running for longer than five years with 39% running for between two and five years, 13% for between one and two years and 8% for less than a year. Funding received Most mentoring projects receive their main source of funding from a local authority (26%) followed closely by projects funded from a charitable trust/lottery (23%) and 10% from central government. Fewer projects receive their main funding from the private sector (5%), donations (3%) and fundraising (3%). The level of funding received by the majority of projects (52%) is up to £25,000 per year with just under a quarter (24%) receiving between £25,000 and £50,000 per year. Unit costs Of those mentoring projects that have calculated a unit cost for their service (the total cost of supporting one service user) a wide cost range was identified, this was not surprising as services differ in the level of support offered and delivery methods used. A community mentoring project working with socially isolated older people had a unit cost of £350 and a business mentoring programme with looked after young people was £400. Mentoring projects in schools ranged from £5 to £600 projects working with those at risk of offending ranged from £120 to £4000. MBF Funding survey report 2011 Impact of spending cuts and a changed funding climate Just under half of mentoring projects (47%) said that the introduction of spending cuts by the government had an impact on them during the last financial year (April 2010 - March 2011). However this figure increases to 72% of 69% of projects who feel that the cuts will have an impact on them during the current financial year (April 2011 - March 2012). Just under a third (30%) have made cuts to their project as a result of spending cuts during the last financial year and of these 80% have made staff cuts, 60% reduced the number of service users supported and 40% reduced their number of volunteers. Looking ahead, 41% of projects anticipate having to make staff cuts over the next financial year with 23% anticipating reducing the number of service users they support. Overall, 47% of mentoring projects expect their situation to worsen over the next financial year with 14% predicting it will improve and 39% that it will stay the same. Many projects expressed deep concern that if they are unable to secure funding then the beneficiaries and volunteers of many services will suffer a severe blow leading to a detrimental impact on society as a whole. This view was shared by projects working across all ages and client groups. Projects also say that there is a growing expectation that projects will need to do more with less money. 19 Impact on users and volunteers Funding strategies Fifty five per cent of mentoring projects saw a greater demand for their service from service users over the last financial year and 73% anticipate greater demand in the coming financial year. Forty five per cent saw an increase in volunteer applications to their mentoring service over the last financial year with 48% anticipating seeing more volunteer applications in the current financial year. We wanted to find out the extent to which projects are experiencing or dealing with direct payments or personal budgets and 16% of mentoring projects have had some experience in these areas. When asked if they had done any cost benefit analysis (e.g., putting costs to outputs and measuring against other services), 13% of projects have, 53% of projects have not and 15% plan to undertake an analysis over the next year. Twenty nine cent of projects said that they would like to but would need further advice and guidance. Quality standards and relationship with funders Three quarters of projects surveyed (76%) said that they thought having a quality standard for their project strengthened their application or opportunity to obtain funding. Of the mentoring projects surveyed, the most popular quality standards they have obtained are as follows: 65% have achieved the MBF Approved Provider Standard (APS), 28% have achieved Investors in People, 12% have Investing in Volunteers, 8% have PQASSO and 6% have Matrix. Twenty two per cent of mentoring projects surveyed do not have any quality standards. Seventy one per cent of mentoring projects have engaged in new collaboration/partnership working over the last financial year and 33% have involved users in designing services, 24% have started to share back-office services. Just over half of projects (52%) rate the level of understanding and awareness of mentoring and befriending by their main funder as either „good‟ or „excellent‟. There is some evidence of changes in demands being made by funders as 38% of projects tell us that they have seen an increase in demand to provide evidence of outcomes, 16% see an increased demand for partnership working, 14% see an increase in demand for social impact reporting and 4% in promoting their funder‟s profile. MBF Funding survey report 2011 20 Appendix 2: Befriending summary A summary of the survey responses made by befriending projects Funding information Most befriending projects support more than 50 volunteers and provide a service to more than 50 service users annually. The length of time projects have been running reveals that 62% of befriending projects have been running for longer than five years with 19% running for between two and five years, 6% for between one and two years and 13% for less than a year. Funding received Most befriending projects receive their main source of funding from a local authority (39%) followed by those funded from a charitable trust/lottery (30%), from donations (9%), from fundraising (7%). Fewer projects receive their main funding from an NHS Trust/PCT (5%) and the private sector (4%). The level of funding received by the majority of projects (39%) is up to £25,000 per year with just over a quarter (27%) receiving between £25,000 and £50,000 per year. Seventeen per cent receive between £50,000 and £100,000 and 12% between £100,000 and £250,000. Unit costs Of those befriending projects that have calculated a unit cost for their service (the total cost of supporting one service user) a wide cost range was identified, this was not surprising as services differ in the level of support offered and delivery methods used. Projects working with socially isolated older people had unit costs ranging from £80 to £1000. Mental health befriending schemes had unit costs of between £10 and 100, a befriending project working with asylum seekers calculated £100 and with disabled people a range of between £20 and £900. MBF Funding survey report 2011 Impact of spending cuts and a changed funding climate Forty per cent of befriending projects said that the introduction of spending cuts by the government had an impact on them during the last financial year (April 2010 - March 2011). However this figure increases to 75% of projects who feel that the cuts will have an impact on them during the current financial year (April 2011 - March 2012). A third (33%) have made cuts to their project as a result of spending cuts during the last financial year and of these 92% have made staff cuts, 39% reduced the number of service users supported and 39% reduced their number of volunteers. Eight per cent have merged with another organisation. Looking ahead, 40% of projects anticipate having to make staff cuts over the next financial year with 29% anticipating reducing the number of service users they support. Overall, 40% of befriending projects expect their situation to worsen over the next financial year with 14% predicting it will improve and 47% that it will stay the same. Many projects expressed deep concern that if they are unable to secure funding then the beneficiaries and volunteers of many services will suffer a severe blow leading to a detrimental impact on society as a whole. This view was shared by projects working across all ages and client groups. Projects also say that there is a growing expectation that projects will need to do more with less money. 21 Impact on users and volunteers Funding strategies Sixty nine per cent of befriending projects saw a greater demand for their service from service users over the last financial year and 85% anticipate greater demand in the coming financial year. Forty three per cent saw an increase in volunteer applications to their befriending service over the last financial year with 58% anticipating seeing more volunteer applications in the current financial year. We wanted to find out the extent to which projects are experiencing or dealing with direct payments or personal budgets and 23% of befriending projects have had some experience in these areas. When asked if they had done any cost benefit analysis (e.g., putting costs to outputs and measuring against other services), 9% of projects have, 54% of projects have not and 20% plan to undertake an analysis over the next year. Thirty three per cent of projects said that they would like to but would need further advice and guidance. Quality standards and relationship with funders Around two thirds of projects (69%) said that they thought having a quality standard for their project strengthened their application or opportunity to obtain funding. Of the befriending projects surveyed, the most popular quality standards they have obtained are as follows: 60% have achieved the MBF Approved Provider Standard (APS), 19% have achieved Investors in People, 8% have Investing in Volunteers, 8% have PQASSO and 6% have Matrix. Twenty one per cent of befriending projects surveyed do not have any quality standards. Sixty five per cent of befriending projects have engaged in new collaboration/partnership working over the last financial year and 39% have involved users in designing services and 19% have started to share back-office services. Just under half of befriending projects (44%) rate the level of understanding and awareness of mentoring and befriending by their main funder as either „good‟ or „excellent‟. There is evidence of changes in demands being made by funders as 80% of befriending projects tell us that they have seen an increase in demand to provide evidence of outcomes, 43% see an increased demand for partnership working, 36% see an increase in demand for social impact reporting, 9% in payment by results. MBF Funding survey report 2011 22 Appendix 3: Survey data Response Frequency 49.3% 50.7% Type of project Befriending Mentoring Which part(s) of the UK does your project cover? England Northern Ireland Scotland Wales MBF Funding survey report 2011 71 73 Mentoring Befriending Combined average 46.5%% 4.1% 9.6% 5.5% 45.8%% 4.2% 9.9% 8.5% 92.4% 4.2% 9.7% 6.9% Response Frequency Which is your primary client group? Asylum seekers/refugees/migrants Black, Asian and Minority Ethnic Communities Carers Disabled people (learning disabilities) Disabled people (physical and/or sensory) Employees (career or professional development Looked after children and young people Offenders, ex-offenders, at risk of offending Older people (socially isolated) Parents and families People with chronic /terminal illness or specific medical condition People not in employment, education or training People who are homeless or in housing need People with a mental health problem People with substance misuse/addiction issues Students Other How many service users supported annually? Between 1 and 10 Between 11 and 25 Between 25 and 50 More than 50 Response Count 2.3% 1.5% 1.5% 6.8% 5.3% 0.8% 10.6% 11.3% 19.7% 2.3% 5.5% 2.3% 2.3% 9.9% 3.0% 19.7% 7.3% Mentoring Befriending Combined average 10.0% 25.7% 25.7% 38.6% 4.4% 16.2% 30.9% 48.5% 7.2% 21.0% 28.3% 43.5% 23 How long has your project been running? Less than a year Between 1 and 2 years Between 2 and 5 years Longer than 5 years Mentoring Befriending Combined average 8.3% 12.5% 38.9% 40.3% 13.2% 5.9% 19.1% 61.8% 10.7% 9.3% 29.3% 50.7% How many volunteers are there in your project? Between 1 and 10 Between 11 and 25 Between 25 and 50 More than 50 Mentoring Befriending Combined average 15.7% 30.0% 34.3% 20.0% 14.7% 26.5% 27.9% 30.9% 15.2% 28.3% 31.2% 25.4% Mentoring Befriending Combined average Annual cost of running project? £0 to £25,000 £25,000 to £50,000 £50,000 to £100,000 £100,000 to £250,000 £250,000 to £500,000 £500,000+ 47.5% 26.2% 6.6% 16.4% 1.6% 1.6% 31.5% 38.9% 22.2% 5.6% 0.0% 1.9% 40.0% 32.2% 13.9% 11.3% 0.9% 1.7% Main source of funding? Local authority NHS Trust / PCT Central Government Charitable Trust / Lottery European Private sector Donations Fundraising (events) etc Trading Other: Mentoring 26.2% 0.0% 9.8% 23.0% 0.0% 4.9% 3.3% 3.3% 0.0% 29.5% Befriending 38.6% 5.3% 0.0% 29.8% 0.0% 3.5% 8.8% 7.0% 0.0% 7.0% Combined average 32.2% 2.5% 5.1% 26.3% 0.0% 4.2% 5.9% 5.1% 0.0% 18.6% How long is your main source of funding for? Less than 1 year 1 year 2 years 3 years 3+ years Mentoring Befriending Combined average 20.7% 34.5% 8.6% 15.5% 20.7% 14.8% 42.6% 7.4% 24.1% 11.1% 17.9% 38.4% 8.0% 19.6% 16.1% MBF Funding survey report 2011 24 How much funding do you receive from your main funder? £0 to £25,000 £25,000 to £50,000 £50,000 to £100,000 £100,000 to £250,000 £250,000 to £500,000 £500,000+ Additional source of funding Local authority NHS Trust / PCT Central Government Charitable Trust / Lottery European Private sector Donations Fundraising (events) etc Trading Other: Mentoring Befriending 51.7% 24.1% 8.6% 6.9% 6.9% 1.7% 38.5% 26.9% 17.3% 11.5% 3.8% 1.9% Mentoring 27.8% 2.8% 0.0% 22.2% 2.8% 5.6% 38.9% 33.3% 11.1% 19.4% Have the spending cuts had an impact during current financial year (April 2010 – March 2011)? Yes No Don‟t know Will the spending cuts have an impact during next financial year (April 2011 – March 2012)? Yes No Don‟t know If you receive statutory funding, has the level changed over this financial year (April 2010 – March 2011)? Yes our funding has been cut No our funding has stayed the same We haven‟t received this funding before MBF Funding survey report 2011 Befriending 31.0% 16.7% 4.8% 42.9% 0.0% 7.1% 71.4% 47.6% 4.8% 0.0% Combined average 45.5% 25.5% 12.7% 9.1% 5.5% 1.8% Combined average 29.5% 10.3% 2.6% 33.3% 1.3% 6.4% 56.4% 41.0% 7.7% 9.0% Mentoring Befriending Combined average 46.8% 50.0% 3.2% 40.0% 54.5% 5.5% 43.6% 52.1% 4.3% Mentoring Befriending Combined average 69.4% 17.7% 12.9% 74.5% 12.7% 12.7% 71.8% 15.4% 12.8% Mentoring Befriending Combined average 31.5% 27.8% 40.7% 30.4% 50.0% 19.6% 31.0% 38.0% 31.0% 25 Has the demand for your service from users changed over the last financial year? Greater demand Less demand No change Do you think the demand for your service from users is likely to change over the next financial year? Greater demand Less demand No change Have you seen any change in the pattern of volunteer applications over last financial year? More volunteer applications Fewer volunteer applications No change Do you think the pattern of volunteer applications is likely to change over the next financial year? More applications Fewer applications No change Do you think having a quality standard strengthens your application or opportunity to obtain funding? Yes No Don‟t know Which of the se quality standards does your project have? Approved Provider Standard (APS) Investors in People Investing in Volunteers Matrix PQASSO Don‟t have any quality standards MBF Funding survey report 2011 Mentoring Befriending Combined average 55.0% 1.7% 43.3% 69.2% 1.9% 28.8% 61.6% 1.8% 36.6% Mentoring Befriending Combined average 73.3% 5.0% 21.7% 84.6% 1.9% 13.5% 78.6% 3.6% 17.9% Mentoring Befriending Combined average 45.0% 11.7% 43.3% 43.1% 7.8% 49.0% 44.1% 9.9% 45.9% Mentoring Befriending Combined average 48.3% 12.1% 39.7% 57.7% 5.8% 36.5% 52.7% 9.1% 38.2% Mentoring Befriending Combined average 76.3% 3.4% 20.3% 68.6% 5.9% 25.5% 72.7% 4.5% 22.7% Mentoring Befriending 64.7% 27.5% 11.8% 5.9% 7.8% 21.6% 60.4% 18.8% 8.3% 6.3% 8.3% 20.8% Combined average 62.6% 23.2% 10.1% 6.1% 8.1% 21.2% 26 How do you rate your main funder’s understanding and awareness of mentoring and befriending? Very poor Poor Quite good Good Excellent Mentoring Befriending Combined average 0.0% 12.1% 36.2% 32.8% 19.0% 2.2% 17.4% 37.0% 32.6% 10.9% 1.0% 14.4% 36.5% 32.7% 15.4% Has there been an increase in demand from funders in the following areas? Evidence of outcomes Social impact reporting More partnership working Payment by results Promotion of funder‟s profile No change Mentoring Befriending 37.5% 14.3% 16.1% 1.8% 3.6% 58.9% 80.0% 35.65% 42.2% 8.9% 0.0% 17.8% Combined average 56.4% 23.8% 27.7% 5.0% 2.0% 40.6% Have you any experience of dealing with direct payments or personal budgets? Yes No Mentoring Befriending 16.1% 83.9% 23.4% 76.6% Have you done any cost benefit analysis? Mentoring Befriending Yes No Will be over the next year Would like to but need further advice and guidance 12.7% 52.7% 14.5% 29.1% 8.7% 54.3% 19.6% 32.6% Have you engaged in any new ways of working over the last financial year? Merger Collaboration/partnership working Involved users in designing services Sharing of back-office services Mentoring Befriending 0.0% 71.4% 33.3% 23.8% 19.2% 65.4% 38.5% 19.2% Have you made any cuts to your project as a result of the spending cuts during last financial year? Yes No Mentoring Befriending Combined average 30.2% 69.8% 33.3% 66.7% 31.6% 68.4% MBF Funding survey report 2011 Combined average 19.4% 80.6% Combined average 10.9% 53.5% 16.8% 30.7% Combined average 10.6% 68.1% 36.2% 21.3% 27 If yes, in which areas? Mentoring Befriending Staff cuts Reduced number of clients supported Reduced number of volunteers Merged with another organisation 80.0% 60.0% 40.0% 0.0% 92.3% 38.5% 38.5% 7.7% If no, has your project expanded during the last financial year? Increased staff Increased number of clients supported Increased number of volunteers No expansion Other Mentoring Befriending 12.8% 33.3% 33.3% 56.4% 0.0% 9.4% 43.8% 34.4% 43.8% 3.1% Are any cuts likely in the next financial year do you think? Staff cuts Reduced number of clients supported Reduced number of volunteers Merger with another organisation No cuts likely Other Mentoring Befriending 40.9% 22.7% 18.2% 4.5% 47.7% 6.8% 39.5% 28.9% 26.3% 15.8% 44.7% 5.3% In what ways is it likely that your project may expand over the next financial year? Increased staff Increased number of clients supported Increased number of volunteers No expansion Other Mentoring Befriending 11.1% 44.4% 44.4% 42.2% 2.2% 14.6% 46.3% 34.1% 48.8% 2.4% Do you expect your project’s situation to worsen or improve over the next financial year? Worsen Improve Stay the same Mentoring Befriending Combined average 47.1% 13.7% 39.2% 39.5% 14.0% 46.5% 43.6% 13.8% 42.6% MBF Funding survey report 2011 Combined average 87.0% 47.8% 39.1% 4.3% Combined average 11.3% 38.0% 33.8% 50.7% 1.4% Combined average 40.2% 25.6% 22.0% 9.8% 46.3% 6.1% Combined average 12.8% 45.3% 39.5% 45.3% 2.3% 28 About the Mentoring and Befriending Foundation MBF is a national charity that encourages the growth and development of mentoring and befriending across all sectors. We provide expert guidance and support, promote quality and good practice and work with others to demonstrate the difference mentoring and befriending makes to people‟s lives. Our vision is of a society where mentoring and befriending can enable all people to reach their full potential. Mentoring and Befriending Foundation Suite 1, 4th Floor, Building 3 Universal Square, Devonshire Street North Manchester M12 6JH Tel: 03300 882877 Email: info@mandbf.org Website: www.mandbf.org MBF Funding survey report 2011 29