The Prince Update - February 22nd
Our writer Richard Prince shares his regular horizon scan of the sector news, flagging up developments, new funding and opportunities in the social sector for portfolio careerists and others to be aware of.
Lloyds Bank Foundation: Value of Small in a Big Crisis
Small and local charities – those with an income under £1 million - were at the heart of the community response to the first wave of the COVID-19 pandemic. They demonstrated tremendous energy, flexibility and professionalism to understand the implications of the crisis and continuously adapt their provision in response to the ever- changing needs and circumstances of their local communities.
During the first six months of the COVID-19 pandemic smaller charities worked flexibly to respond quickly to the implications of the crisis. In essence, they ‘showed up’ and then ‘stuck around’, using their position of trust within communities experiencing complex social issues to support people when they were needed most. This is in contrast to parts of the public sector, who were slower to react, and to informal support and mutual aid, which has dissipated over time.
National Lottery Grants for Heritage 2021-22
Applications are now open for National Lottery Grants for Heritage from £3,000 to £5million. This marks a return to their core business, but it is not a return to ‘business as usual’. These grants will prioritise heritage projects that will:
· boost the local economy
· encourage skills development and job creation
· support wellbeing
· create better places to live, work and visit
· improve the resilience of organisations working in heritage
Sector calls for the creation of an Emergency Support Fund
Leaders and supporters from across the charity sector have put their names to an open letter to the Prime Minister urgently calling for the creation of an Emergency Support Fund so charities can meet the rising demand for their support right now and ensure they can play a key role in helping communities and causes recover once the COVID crisis starts to recede. The letter has been signed by leaders of some of the UK’s most high profile charities and foundations. The letter comes as charities respond to growing need for their services while wrestling with an estimated £10bn funding gap caused by the pandemic. Many organisations are already spending their reserves, making redundancies and having to scale back or even close services.
Resilience and Recovery Loan Fund (RRLF) has surpassed £20m in total funding approved
RRLF is a £25m fund for social enterprises and charities that are improving people’s lives across the UK who are experiencing disruption to their normal business model as a result of COVID-19. It was established in April 2020 to make an existing government scheme (the Coronavirus Business Interruption Loan Scheme (CBILS) more easily accessible to charities and social enterprises. To date, RRLF has approved funding of over £20m to 57 charities and social enterprises, with around £9m in funding left. Of the current total, over £18.4m worth of loans and over £2.4m worth of grants have been approved. The Fund closes to new applications on Wednesday 31 March.
EP’s Good Merger Index published
Just in case you missed it, you can download this year’s report here:
https://ep-uk.org/wp-content/uploads/2021/02/Good-Merger-Index-2019-20.pdf
And some press comment:
https://www.civilsociety.co.uk/news/no-sign-covid-19-has-impacted-mergers-report-shows.html
Access Growth Fund evaluation
Ecorys and ATQ have published the latest instalment of their Growth Fund evaluation. Designed in 2014/15, the Growth Fund was established with a clear aim – to address a gap in the availability of small-scale (sub-£150k), unsecured, affordable investment to charities and social enterprises. It would do this by funding a number of new, small-scale, blended finance funds delivered by a range of new and existing social investors.
Read the full report here.
Comment: I honestly struggled to understand this evaluation and what it means… good luck!
UK social investors criticised for lack of frontline experience
UK social investment bosses faced criticism that they were hiring too many bankers and too few people with first-hand experience of social enterprise. The comments came from social entrepreneurs invited to speak at a witness evidence session of the Adebowale Commission on Social Investment, a group set up last year to explore how the UK’s social investment market can help social enterprises to grow.
Social investors also responded to questions on the cost of capital and the role of social investment compared to commercial finance, with an acknowledgement that social investors should make their “horrendously complicated” business models “really transparent”, so that outsiders understand better how their money is made and spent.
What to do as a trustee of a struggling charity
The recent Kids Company case is a stark reminder of the responsibility that comes with trusteeship. The problems were about governance, not understanding their impact, not having any reserves, and a CEO who was not held properly to account by the board. The case has even evoked a debate about whether the Charity Commission should now advise people against joining struggling charities as trustees. The defence’s warning that the case will deter others from becoming a trustee may be alarmist, but it’s worth heeding. So many charities are facing huge pressures right now—from major spikes in demand to loss of fundraising income. Now more than ever, the sector needs good governance.
The article goes on to suggest several things a trustee of a struggling charity should keep in mind.
Comment: worth a read even if you’re a trustee of a charity that isn’t in trouble
UK charities urgently call on PM to set up emergency fund
Hundreds of the UK’s biggest charity names, including Cancer Research UK, Comic Relief and Samaritans, have signed a joint letter to the prime minister, Boris Johnson, calling on the government to set up an emergency support fund for the voluntary sector. They are warning that hundreds of charities could close in the next few months – or be forced to make major cuts to services – unless ministers create a fund to help voluntary organisations maintain their services. UK charities face an estimated £10bn shortfall in income as a result of the Covid crisis, and there are fears that the next 12 months could prove critical for many organisations as funds and reserves run out and demand continues to rise. The voluntary sector has contrasted the speed and scale of financial support made available by the Treasury for private companies with the limited resources set aside for charities.