Wired Up Communities Funding Sources

1
Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
2
Wired Up Communities Funding Sources
Alternative Learning Providers Capacity Building
and Delivery UK online Centres LSC - DfES
announcement LearnDirect - 2-3k per month for
example - future model unclear ILA 2 - 70m
from 100m pa - ICT only - not just college hubs
- previously 200 per learner See highlights
on DfES announcement
3
Wired Up Communities Funding Sources

• Adult Community Learning
• ACLF?
• Neighbourhood Learning in Deprived Communities
  Fund
• NRAs this year, but wider 03/04 perhaps
• 14m (Revenue/Capital 10/4) rising to a 34m in
  02/03
• enabling local LSCs to make a full contribution
  to the NSNR through community - based learning
• improving the quality of the learning provider
  base, including the development of small VCOs,
  and the provision of NR skills knowledge
• encouraging the take up of learning
  opportunities, for example through the further
  development of Community Learning Chests.
• See highlights for illustrative examples of
  Recurrent Capital

4
Wired Up Communities Funding Sources
LSC Local Initiatives Fund build up the
capacity of VCOs to act as learning providers,
and proactively seek out new ones. . .. to
secure help with e.g. staff training, capital
investment, curriculum development, quality
assurance systems, developing new teaching
approaches, or targeting new client groups
through outreach recruitment. .. to develop new
approaches to engaging residents in collective
activities that benefit their neighbourhood
(training in consultation techniques or as
learning advocates) Local LSCs will need to
consider providing this support a long-term basis
to ensure groups are properly established on a
sustainable basis
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Wired Up Communities Funding Sources

• Probabilities of Success
• BT Lifelong Learning Awards - 2_at_75 4_at_25k - 3
  probability
• Wireless Online Networks - 1,000 EoIs - intention
  that 50 of those that get asked to submit a
  proposal will be funded
• A4A - varies over time - as high as 87 of those
  that fill the form in correctly (also a problem
  on LfT teacher checks)
• So need for relationship building with key
  funders - LSC, LSP, GO, RDA

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Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
7
Wired Up Communities Funding Sources

• Community Enterprise
• Pilot projects to take a range of grant-sustained
  community-led organisations give them the
  chance to become self-sustaining institutions,
  given the right level of financial backing
• Investment will be used to build up asset levels
  and trading operations
• NRU ACU funding supported by the DTA, Scarman
  Trust, New Economics Foundation, Local Investment
  Fund and DTIs Social Enterprise Unit, several
  RDAs
• Aims to test ideas in NRU report that proposes
  134m to back 200 community enterprises over 5
  years

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Wired Up Communities Funding Sources

• Social Enterprise
• DTI SEU strategy for success - sets out 3 year
  programme to promote sustain social enterprise
  activity
• SEU identified funding as one of the barriers
• At present, many social enterprises are
  undercapitalised and struggle to access external
  finance, particularly when starting up, growing
  or moving away from grant dependency. Ensuring
  appropriate finance and funding is available to
  social enterprise is key to enabling the sector
  to develop and grow. It is central to our
  strategy to encourage social enterprises to move
  away from grant dependency and towards greater
  self-financing.

9
Wired Up Communities Funding Sources

• DTI Social Enterprise Unit
• ... increase the capitalisation of Community
  Development Finance Institutions specialising in
  the SE market, and encourage CDFIs to consider
  how they could improve service to this market
• ask the Bank of England to review the debt and
  equity finance available to social enterprises
  ... Where there are gaps or barriers . we will
  take forward recommendations ... to address them
• develop a financial awareness programme for
  social enterprises
• .. address ... barriers to the transfer of assets
  to SEs
• ensure that the rules and flexibilities on
  clawback are fully understood and implemented.

10
Wired Up Communities Funding Sources
Phoenix Fund - entrepreneurship in disadvantaged
areas. 30m Development Fund 96 projects to
encourage the start-up and growth of businesses
in disadvantaged areas. 17 focus specifically
on social enterprise Challenge Fund to help
resource CDFIs Community Development Venture
Fund CSR 2002 extra 50m to extend the
Phoenix Fund for a further two years from March
2004 - 10 themes for CDFIs See highlights for
more on themes
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Wired Up Communities Funding Sources
Community Development Finance Institutions Local
Investment Fund Regional Community Loans in
North West loans from 15,000 to 80,000 to
not-for-profit organisations with a viable plan
for a community enterprise which helps with
economic regeneration or social inclusion.
EQUAL Social Enterprise Social Enterprise
Partnership GB - 3.8m - funded by ESF, SBS, RDA
LA for 3 years - involves DTA, Co-operative
Union, SEL, LGA, NEF Social Firms UK
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Wired Up Communities Funding Sources

• EQUAL SE 2 Development Partnerships
• The Social Enterprise Partnership GB will
• reduce local duplication and overlap of services
• formalise and consolidate practitioner-to-practiti
  oner support
• use extranets and other forms of ICT to deliver
  support and create peer networks. Creating a
  project portal
• create new national standards (e.g. certificate
  of financial competence)
• establish a national body of knowledge on social
  enterprise

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Wired Up Communities Funding Sources

• EQUAL Development Partnerships
• Support for the Social Economy in the Eastern
  Region (SSEER)
• will
• Activity will, involve testing innovative ways
  of accessing start-up business/community finance,
  mainstream business support and training for
  social entrepreneurs, staff and volunteers. This
  will create sustainable capacity and build social
  capital leading to labour market integration for
  some of the most hard to reach and excluded
  communities.

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Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
15
Wired Up Communities Funding Sources

• Development Trusts are defined as organisations
  which are
• engaged in the economic, environmental social
  regeneration of a defined area or community
• independent and aiming for self-sufficiency
• not for private profit
• community-based and owned
• actively involved in partnerships between the
  community, voluntary, private and public sectors

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Wired Up Communities Funding Sources
Development Trusts Funding comes from Objective
1 ESF ERDF SRB
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Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
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Wired Up Communities Funding Sources
Community Fund Up to 60k Small Grant
Schemes 5 - 10k For Example A4A Global
Grants Local Network Fund Carnegie UK Trust All
empower, generate participation, activity,
community events publications - leads to
content, online interaction transactions -
celebration via community websites - raising
self-esteem changing self-image
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Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
20
Wired Up Communities Funding Sources
Rural ERDP Vocational Training ERDP Basic
Services - 3k - 500k - childcare, ICT links
(broadband a possibility - but has to
objective-driven - I.e. what is the broadband
content strategy how will the existence of
broadband bring revenue into the rural
area) Leader ? See highlights for more details
on VT RES Urban Knowledge Skills
programme NDC NRF Community Learning Chests
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Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
22
Wired Up Communities Funding Sources
Community Enabling Grants (CTE) develop better
ways of giving residents more control of their
housing - ... in decisionmaking, and in trying
out new ways of doing things get residents
involved more effectively in regeneration and
investment projects support initiatives for
residents to be involved in your strategies,
community planning More likely to be interested
in those WUCs where they have already had
involvement HA would also have to be performing
well in its core functions
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Wired Up Communities Funding Sources
Learning
Social/Community Enterprises
Development Trusts
Community Groups Residents
Rural/Urban
Housing Association
Intermediate Labour Market
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Wired Up Communities Funding Sources
Intermediate Labour Market - JRF
findings Properly managed, they can deliver
better outcomes, in particular, a more sustained
progression from welfare to work than other
programmes for the long-term unemployed. Althoug
h getting long-term unemployed people back into
work is the main objective of three-quarters of
ILM programmes, many also provide additional
local services and therefore contribute to
neighbourhood regeneration. Setting up and
managing ILMs requires strong local partnerships
and lead bodies, the development of a robust
delivery infrastructure and skilled and capable
managers.
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Wired Up Communities Funding Sources
Activities include environmental work,
childcare, town centre guides, IT services,
sports and community work. Compared with other
labour market initiatives for the same target
group, ILM programmes offer equivalent or better
value for money after adjustments are made for
the value of the services provided, the higher
job placement and durability of employment rates
and the higher incomes gained. The main
problems facing those setting up and operating
ILM programmes is the complexity associated with
funding packages and monitoring requirements and
the absence of secure funding sources.
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Wired Up Communities Funding Sources

• ILM projects rely on packages of funding from
  various sources
• There is no single funding source for an ILM
  programme.
• Most programmes used resources from at least
  three of
• Govt training and employment programmes, such as
  New Deal
• European structural funds (Objectives 1, 2 3)
• Regeneration funds (NDC)
• Service delivery funds, i.e. payment or grants
  related to the work being done (activity-specific
  funding LA, Landfill Tax etc)
• Seventy per cent of programmes used a mixture of
  New Deal and
• European funding