Voluntary Action Waltham Forest

Futurebuilders

What is it?

As part of the 2002 Spending Review the Government conducted a crosscutting review of the role of the voluntary and community sector in service delivery. This review recognised that if the voluntary sector was to play its full role, then government needed to help ensure that it had the capacity to do so.

The outcome of the review was announced in July 2002 and included a £125 million Futurebuilders fund to assist the voluntary and community sector, including social enterprises, in its public service delivery role.

This investment has also been established, says the Government, to demonstrate that the sector can move from a dependency culture based on short-term grants and contracts to investment in long term sustainable funding.

Who can benefit ?

To be eligible for a Futurebuilders investment you will need to satisfy the following criteria:

· You can apply if you are a constituted organisation, which is registered as a charity or that it can demonstrate that it is independent of Government and constituted for public benefit, and can’t dispose of its assets for private gain.

· Your scheme involves delivering direct outcomes to service users in England in one or more of the following themes:
    - Community cohesion
    - Crime
    - Education and learning
    - Health and social care
    - Support for children and young people

· Your proposed outcomes are consistent with the Government’s (national, regional or local) strategies and priorities for these five areas.

· You are open to the possibility of at least part of your investment package from Futurebuilders being in the form of a repayable loan.

· You can identify a sustainable income stream, such as a contract or fees, to enable you to repay our loan and support your scheme in the longer term.

These criteria are still being developed.  Further details will be published on the Futurebuilders’ website in July www.Futurebuilders-england.org.uk

Getting Ready
Guidance on Futurebuilders funding suggest a number of things groups can do to prepare themselves to ensure a good application:

· Collect and document evidence about the need for your scheme.

· Discuss your proposed scheme with your management committee.

· Consider whether a partnership with a national or local organisation might bring added value to your scheme.

· Talk to the relevant public sector agency (e.g. local authority, primary care trust, crime and disorder reduction partnership, connexions, learning and skills council, central Government department etc.) to establish that your scheme fits with their priorities. It should have the potential to be funded through a contract or through fee income, coming directly, or indirectly from a public funding source.

· Identify what kind of capacity building i.e. support, training and advice you think you need.

· Estimate the full cost (including all relevant overheads) of the investment you need to enable you to develop the capacity i.e. support, training and advice, to deliver the proposed service.  Guidance states it is not expected for groups to have worked out the precise amounts of grant and loan required. “We will work with you to develop an investment package that suits your particular needs.  We do expect you to have worked out the total investment you require.”

Example
Guidance gives a number of examples of the type of project that could be funded. Here is one:

An Asian community group wants to provide an expanded meals on wheels service to elderly Asians in a local area.  It may want a capital investment or a loan to purchase vehicles and IT equipment, or other help. This investment could help it secure a contract with the local authority, which would in turn help it to repay the loan in the long term. This would be support for health and social care.

How much can be applied for?

At the time of the launch of Futurebuilders it was announced that, hopefully, investment would be made in around 250 organisations with investments ranging from £30,000 to several million, as well as providing development grants of around £10,000 to around 100 other applicants.

How to apply

You can register your interest in Futurebuilders on the new website (go on to www.Futurebuilders-englan.org.uk and click on ‘Contact’ then follow the instructions). Regular monthly updates will appear on the website and an inquiry line will be up and running from 5^th July. A programme of local outreach meetings will take place from September.

You will be asked to apply online; Futubuilders say that they will assist with this if necessary. “You will be able to understand our application forms. They will be written in Plain English.”

What is the timetable?

2004

· 5^th June -Futurebuilders website updated

· 5^th July –-First application window opens

· September -Early investments

· End October –First application window closes

2005

· March-July –Second application window

· Autumn –Third application window (provisional)

2006

· January –Fourth application window (provisional)

Futurebuilders expects to make around 35% of its investments on the first applications this year. 60% of investments will be made on applications in the first part of 2005. It has been said however that there may be some smaller, more targeted rounds.

Guidance indicates that the time it will take to process applications will vary depending on the complexity of the scheme. Development grants will be processed in a matter of weeks, whereas a complex scheme could require several months. “A named member of staff will be given as your contact person throughout the process.”

Sustainability

According to ‘Third Sector Magazine’, the Home Secretary, David Blunkett is already negotiating with the Treasury to extend the lifespan of Futurebuilders beyond 2007. Futurebuilders chief executive Richard Gutch told ‘Third Sector’ that there was no reason why the Fund should peter out after three years. “We want Futurebuilders to become a sustainable fund that grows over time.”

Who manages it?

The responsibility for Futurebuilders is with the Active Communities Directorate at the Home Office.

Futurebuilders England Ltd. will manage the Fund, which was established by a consortium of Charity Bank, Unity Trust Bank, NCVO and the Northern Rock Foundation.

What has been said about Futurebuilders?

The National Council of Voluntary Organisations (NCVO) welcomed Futurebuilders and the significant investment of resources in the sector that it represents. They have welcomed the approach that has been taken to develop the proposals put forward in the consultation document and in broad terms the proposals themselves.

However, NCVO says that there are a number of concerns and issues which they believe need to be addressed for Futurebuilders to be a real success.

· Government needs to work hard, sys NCVO, so that Futurebuilders not only benefit large service delivery organisations and in particular those with the better performing local statutory purchasers.

· There remains widespread concern over the proposal to offer a range of loan type finance to ‘buy’ assets, in addition to the more traditional approach of grants. “For Futurebuilders to be successful there needs to be rapid and clear demonstration across government of the implementation of full cost recovery”

At a very recent Futurebuilders in Manchester it was reported that the meeting brought out more questions than answers, especially with the development element. Concerns were expressed around the issue that there is not going to be enough successful applications unless (especially smaller) organisations get together.

How does it link to other funding streams?

Richard Gutch expressed his hopes at the launch of Futurebuilders that the success of Futurebuilders would encourage other funders to be more innovative and help create an ‘investment culture’ with less dependency on short term grants and greater emphasis on earned income.

“A successful applicant to Futurebuilders will also be seen by other funders as a ‘powerful indication of the quality of your services and the professionalism with which they are delivered”, said David Senior, Marketing Director of ‘Action {Planning’ which facilitated the launch.

Where do I find out more?

The first point of contact is the Futurebuilders website on www.futurebuilders-england.org.uk

You can also contact Voluntary Action on 0208 521 0377 if you need more details although we are relying as much as you on new information and guidance being made published in the near future.