Support for BME-led investees
14.12.2006
Futurebuilders England held its first support day for BME-led investee organisations in November. Eight organisations attended, representing nearly a quarter of all Futurebuilders’ BME-led investments to date. This photo diary reflects the main highlights from the day.
Arrival of delegates
Delegates and speakers chat about what the day will bring.
Welcome and introductions
Vandna Gohil, Learning and Development Manager, Futurebuilders England.
“Today’s programme reflects the wishes of participants to meet other investees to share common experiences, hear about successes, and learn from organisations that have successfully made the transition from development grant holders to become full investees.”
Caryl Agard, Board Member, Futurebuilders England.
“The Board wants to support BME-led investees and is committed to ensuring that at least 10% of all our investments are made to BME-led groups. We are currently exceeding this target, with 20% of all investments going to BME-led organisations. However, the majority of these are for development grants only and we want to ensure that these become full investments through the training courses we run, capacity building grants to help with organisational development and the practical support we offer through our business consultants and investment team.”
“Futurebuilders, as an engaged investor, is committed to assisting investees in their journey to success, and part of today’s event is to explore if there is any additional or different support we could be offering to help strengthen BME-led development grant holders to become full investees.”
From development grant to full investment – 3 case studies
Rachel Talbot, Chief Executive, Cambridge and District Citizens Advice Bureau, www.cambridgecab.org.uk
“The project was to purchase and refurbish a building and turn it into community based advice hubs that would cost £1M. Our Board had already been through the discussion about the liability of taking on a lease versus mortgage issue. We sent Futurebuilders a business plan, with a 5 year cash flow, but didn’t know what mix of capital:loan would be accepted. We were offered development funding to work up the bid – plus help of an investment officer and consultancy support.
“The development grant helped us establish the true cost of the project as we had seriously under-costed this in our initial application, for example the legal structure of our new building (plus negotiating for staying where we are until new build ready), VAT impact on costings, ICT plans and fit out costs. The only fund that could possibly fit our requirements was Futurebuilders.”
John Street, Director, Free@last
“Don’t sell yourself short – local authorities will often expect you to deliver services on the cheap, but demand full costs that reflect the true value of your service. It takes guts to turn down money and sometimes the only option is to walk away.”
“We in the third sector make the public sector look good when they buy our services. Futurebuilders investees are often delivering services that help local authorities score well with their audits and targets.”
Brian Miles, Director, All Saints Community Development Project www.allsaintscentrekh.co.uk
“Futurebuilders is responsive to the changing needs of the investee and offers support that is flexible and sometimes involves taking risks which other financial institutions would not be willing to take. Investees should not give up. The process of moving from development grant to full investment can be time consuming, but with Futurebuilders support, the process helps strengthen your organisation so that it is investment ready.
Networking and lunch
Futurebuilders England – an update
Richard Gutch, Chief Executive, Futurebuilders England
“BME-led organisations face a variety of challenges in winning contracts, many similar to other organisations. But specifically, BME-led organisations can face problems due to time, support to break into the funding or contracting market and a track record with statutory funders. Often purchasers and commissioners are unaware of the strengths BME-led organisations have in delivering joined up services to people and communities.”
“Futurebuilders strives to help investees overcome these barriers by strengthening the organisation through capacity building support, such as help with producing a business plan; negotiating with purchasers; and producing marketing materials to help promote the services to prospective purchasers. We also provide training for our investees to help them calculate full cost recovery and win contracts from statutory bodies.”
Questions and group discussion
Rita Melifonwu, Chief Executive, Total Healthcare Groups CIC
“The Total Healthcare project has won the Social Enterprise award for Enfield, this would not have happened without Futurebuilders’s support. The sky is the limit now for us.”
Icky Hasnain, Assistant to the Chief Executive, Asian People’s Disability Alliance
“It’s not rocket science…it’s just about working together (with commissioners) as partners.”
Angela Baugh, Secretary, Ellesmere Children
“The thing I liked about Futurebuilders was the excitement of being taken seriously as a business. Futurebuilders is enabling us to prove what we can do.”
Sonia Ramanah, Co-founder and Company Secretary, StreetVibes Youth
“Our investment officer is brilliant, and the consultancy support you’ve given us has been fantastic. Futurebuilders was holding our hand the whole way. Thanks to Futurebuilders, we can realise contracts that are dangling in front of us.”
Parvin Ali, Chief Executive, FATIMA Women’s Network
“We needed a rally call to help us bond…the board is stronger and the development grant galvanised them and helped members to articulate their needs more powerfully than anticipated. It has been wonderful – the result is that our board has grown from four to six members. Futurebuilders funding brings with it kudos, which helps open doors to other funders – it gives us a stamp of approval.”
Mahmood Alazani, Head of Centre, YETC
“The investment has had a big impact on the organisation – we are reviewing our structures to reflect greater diversity. We like Futurebuilders because of their positive dialogue that leads to constructive involvement.”
Brinder Seni, Manager, Stoke Community Culture Group
“The development grant helped us think strategically and develop our business in a structured way.”
Chetna Shah, General Manager, Enfield Asian Welfare Association
“Our development grant has finished but we decided not to proceed with a full investment because we could not secure full cost recovery from the council. However, as a result of the support we had from Futurebuilders we have been able to secure spot contracts and are currently preparing tenders for new contracts.”
Outcome
The participants have shared contact details and plan to keep in touch for peer support. There was overwhelming support for a similar event and Futurebuilders plan to bring BME- led investments together in Spring 2007 which will include commissioning a key theme.