Sustaining a Thriving Third Sector 23 rd April, 12:00-15:00

1. Sustaining a Thriving Third Sector 23rd April, 12:00-15:00 Follow us on Twitter @Leedsccp #STTS

2. State of the Sector in Leeds Richard Norton

3. Times of change Situation very fluid – high levels of change Legislation – NHS changes Definitions of the sector increasingly fluid – new legal 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!

4. Challenges Austerity/cuts: varied impact on TSOs – some 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

5. Leeds context 1 Leeds City Council response to cuts – protection of 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

6. 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

7. Legal Types

8. Income

9. FTE Employees

10. Volunteers

11. Primary Client Groups

12. Scope of Activity by Locality

13. Opportunities Community rights and localism – new funds New funding from Clinical Commissioning Groups – 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

15. Basis Training & Education Social Enterprise linked to Genesis Leeds

16. 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

17. Basis and Genesis Leeds Relationship Registered Charity Since 1989 Knowledge & Staff Funds & Social Impact Registered CIC Since 2014

18. Sources of Income

19. Client Groups ( Leeds and Nationally) • Local Authorities • Schools • NHS • Charities • Private Residential Care

20. 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 re-launch • Other courses on social issues on demand

21. Clients we’ve worked with

22. 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 re-launch • Other courses on social issues on demand

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. Thank you! More info on: www.basistraining.org.uk @basistraining Linkedin: Basis Training & Education Email: Amber_wilson@basistraining.org.uk Tel: 0113 – 243 0036

32. Mobilisation Collaboration with Other Charities

33. 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

34. Rationale for Collaboration • Growing Client/Service User Needs • Move to Larger Contracts • Need to Deliver More for Less • Expenditure Savings - Efficiencies • BLC Value

35. 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

36. Cross Sector Collaborations John Walsh – York Street Health Practice

37. COMMUNITY SHARE AND BOND/LOAN STOCK ISSUES

38. Peter ParkerCharities 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.

39. What are share and bond issues? • Share issue – offer for shares by a company or a registered society (a co-operative (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

40. *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?

41. 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

42. 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

43. 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?

44. Building support - Board and staff members - Residents - Businesses - Councillors/regeneration agencies/the media - Ethical investors

45. 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

46. 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”

47. 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

48. Tax reliefs • Seed Enterprise Investment Scheme • Enterprise Investment Scheme • Community Investment Tax Relief

49. Successful share issues • The Baywind Energy Co-operative • Cafedirect plc • Headingley Development Trust

50. Sustaining a Thriving Third Sector 23rd April, 12:00-15:00 Follow us on Twitter @Leedsccp #STTS