Diversification

Organisations can be less secure if they rely on a single income stream - with 'all their eggs in one basket'. If that income stream is from a grant funder, that grant is unlikely to continue for ever. If it is earned income, the market could shrink - either because demand falls or because new competitors come along. It's worth considering a range of different categories of income - grants, contracts, income earned from selling on the open market, donations from individuals - which can complement each other. In some cases, taking out a loan could help you access a new income source sooner, which could boost your overall income.

This information sheet covers:-

• Tools to help plan for diversification
• Resources to help plan for contracting
• Sources of loan finance

Getting Started:

Some of the links below have been reduced in length and complexity using TinyURL.

• NCVO introduction to strategic planning for your organisation
  Explores the basics and importance of strategic planning and resources to help.
  http://www.ncvo- vol.org.uk/sfp/strategicplanning/
• NCVO sustainable funding case studies
  A selection of case studies gathered through the NCVO sustainable funding project.
  http://tinyurl.com/55fxef
• NCVO Newsletter
  The latest update and resources form the NCVO sustainable funding project.
  http://tinyurl.com/5zyqfl
• Social Enterprise Visits Programme
  A programme of visits available to social enterprise to explore a range of issues: Business Planning, Customer Focus, Exploring New Markets, Leadership, Marketing, Partnership Working, people issues, raising finance, and social accounting. Bespoke visits can be arranged. http://www.socialenterprisevisits.com/

Full Cost Recovery:

• Types of overhead cost - An introduction to overhead costs
  http://www.ncvo- vol.org.uk/sfp/strategicplanning/?id=2207
• Core Funding Strategies - An introduction to writing a core funding strategy
  http://www.bond.org.uk/pubs/guidance/6corefunding.pdf
• The implications of not recovering full costs
  The impacts and threats to organisations of not recovering all their costs.
  http://www.ncvo-vol.org.uk/sfp/strategicplanning/?id=2208
• The benefits to organisations of understanding the full costs
  Why organisations can make better informed decisions.
  http://www.ncvo-vol.org.uk/sfp/strategicplanning/?id=2210
• Understanding and calculating your full costs
  The full cost recovery template and its principles (developed by ACEVO and New Philanthropy Capital)
  http://www.ncvo-vol.org.uk/sfp/strategicplanning/?id=2211
  • Resources and Toolkits available to buy from ACEVO:
  • Funding our Future: Core Costs Revisited
  • Funding our Future II: Understand and allocate costs
  • Full Cost Recovery - a guide and toolkit on cost allocation (3 versions!)
  • Guide & Software CD Rom
    http://www.acevo.org.uk/

Contracting?

• NCVO Guide to finding Contracts
  Offers general tips on finding contract opportunities.
  http://www.ncvo-vol.org.uk/sfp/earning/?id=2232
• NCVO Voluntary Sector Management of Public Service Delivery Network
  Support and advice on managing and negotiating public sector contracts.
  http://www.ncvo- vol.org.uk/?id=2390
• SCEDU training. Tender readiness toolkit
  Sheffield Community Enterprise Development Unit (SCEDU) offers training with a toolkit for organisations that are looking to compete for contracts. SCEDU has been highly successful securing contracts in Sheffield's multi-million pound regeneration.
  For more details contact SCEDU on 0114 281 4168 or email sdt@scedu.org.uk
  http://www.scedu.org.uk/
• The Compact
  is the agreement between government and the voluntary and community sector in England to improve their relationship for mutual advantage. By building better relationships the Compact can help government and the voluntary and community sector work better together for the communities they serve. Use the Compact website to find out how the Compact can help you.
  http://www.thecompact.org.uk/
• Public Spending for Public Benefit
  A New Economics Foundation booklet that explores how the public sector can use its purchasing power to deliver local economic development.
  http://www.neweconomics.org/gen/z_sys_PublicationDetail.aspx? PID=210
• More For Your Money: guides to procuring from Social Enterprise
  The Social Enterprise Coalition has produced two guides, one focused on health and one on local authorities. Both offer examples of good practice in contracting with the not for profit sector and are a useful resource for both commissioners and service providers.
  • More For Your Money: guide to procuring from Social Enterprise - Local Authorities
  • More For Your Money: guide to procuring from Social Enterprise - NHS
    http://www.socialenterprise.org.uk/
• Business Link Yorkshire
  www.businesslinkyorkshire.co.uk target SME, SE, commercial, products - loans and grants, operation area, Yorkshire and Humber and provides local advisers and workshop to support social enterprisers develop into sustainabile businesses by generating income through contracts (see below)

Funding and Finance:

• Adventure Capital Fund
  The Home Office has set up a fund to increase support for smaller organisations that wish to begin trading. Funding is available for organisations wishing to provide incubator and managed workspace.
  http://www.adventurecapitalfund.org.uk/
• West Yorkshire Social Enterprise Link
  runs a grant scheme for organisations developing Social Enterprise.
  http://www.wyselink.co.uk/
• CDFA Finance Directory
  The CDFA is the trade association for Community Development Finance Institutions (CDFIs). CDFIs are sustainable, independent financial institutions that provide capital and support to enable individuals or organisations to develop and create wealth in disadvantaged communities or under-served markets. To search the CDFA directory go to:
  http://www.cdfa.org.uk/cmdirec.php
• SETAS Listing of Funding Resources
  UK wide list of funding resources for Social Enterprise.
  http://www.setas.co.uk/funding_list.asp
• Loan and Grant Funding to Support Social Enterprise Development
  There are a range of loan and grant/loan combination funds specifically targeted at the social enterprise sector.
  http://www.seyh.org.uk/
• FunderFinder
  Signposts to grant funding and offers free software for budgeting and planning.
  http://www.funderfinder.org.uk/groupsupport.php

Monitoring, Evaluation and Quality Systems:

• The New Economics Foundation website
  Signposts to resources that support social accounting and auditing as a way of measuring and reporting on an organisation's social and ethical performance.
  http://www.neweconomics.org/gen/newways_socialaudit.aspx

• The Social Audit Network website
  A host of resources including an explanation of social audit, sample social accounts and toolkits, resources and events to help organisations to adopt social auditing.
  http://www.socialauditnetwork.org.uk
• PQASSO & Charities Evaluation Services
  PQASSO is a quality assurance system that has been designed specifically for small and medium voluntary sector organisations. Designed as a work pack it is simple and straightforward to use, offering a flexible and staged approach to implementing quality.
  http://www.ces-vol.org.uk/
• Customer First
  Quality assurance framework for providers and deliverers of publicly funded business support services.
  http://www.customerfirst.org/

Support Agencies and Networks for Yorkshire & Humber:

• West Yorkshire Community Accounting Service
  WYCAS is a small charitable company operating mainly though not exclusively in West Yorkshire. Its overall aim is to develop the ability of voluntary and community sector organisations with charitable aims to manage their money more efficiently and effectively, enabling those organisations to better attain the objectives that they were set up to achieve. http://www.wycas.org.uk/
• Social Enterprise Support Centre (West Yorkshire)
  Provides support and consultancy to the VCS and Social Enterprise sectors across West Yorkshire. Phone: 01924 241330. http://www.sesc.info/
• The Development Trusts Association
  The aim of the DTA is a successful development trust in every community that wants one. There are over 50 development trusts in Yorkshire and the Humber, and over 300 across the UK as a whole, all community owned and led. They cultivate enterprise and build assets. They secure community prosperity - creating wealth in communities and keeping it there. http://www.dtayandhonline.org.uk/
• Social Firm Network: IMBY
  IMBY's mission is to develop Social Firms in Yorkshire and the Humber. A Social Firm is a business set up specifically to create employment for disabled people. Over the next ten years, Social Firms will generate significant levels of economic activity and create individual and corporate wealth. They will provide high quality services to local people and to those visiting our regions. http://www.imby.org.uk/
• Arts Council England
  Arts Council England, Yorkshire is the region's development agency for the arts, promoting the value of the arts and distributing money from government and lottery.
  Many artists and arts organisations are part of our regional voluntary and community sector, or work closely with the sector to deliver arts activities in the community. The activities we support include those which aim to help regenerate communities, champion cultural diversity and to enable children and young people to experience a variety of arts activities. Arts Council England's funding programme for individuals and organisations is
  Grants for the Arts. http://www.artscouncil.org.uk/
• Regen School
  The School delivers a nationally renowned programme of learning and development for community activists, social entrepreneurs and regeneration practitioners. The philosophy focuses on learning from what actually works. We pass on the skills that have a proven record of success, allowing students to gain direct access to leading practitioners and their wealth of experience. http://www.regenschool.com/
• Business Link Yorkshire www.businesslinkyorkshire.co.uk has business advisers in each district of Yorkshire and the Humber who can give support to start up or develop your social enterprise into a sustainable business by generating income through trading or contracting and delivering social impact. It also runs a social enterprise workshop programme, a mentoring scheme and Business Development Vouchers covering the cost of speciailist expertise. Check out the website or contact the Customer Information Call Centre on 08456048048

Business Link Social Enterprise Advisers by area

Leeds - Louanne Roberts Mobile 07764 158224 Email l.roberts@businesslinkyorkshire.co.uk
Bradford - Linda Widdop Mobile 07734 983791 Email l.widdop@businesslinkyorkshire.co.uk
Wakefield and Kirklees - Rupert Shires Mobile 07740 835789 Email r.shires@businesslinkyorkshire.co.uk
Harrogate and Craven - David Morrisey Mobile Email d.morrisey@businesslinkyorkshire.co.uk
York - David Hassall Mobile 07500 082974 Email d.hassall@businesslinkyorkshire.co.uk
North of Humber - Paul Steele Mobile 07500 082564 Email p.steele@businesslinkyorkshire.co.uk
Scarborough, Whitby and Ryedale - Tim Damer Mobile 07500 082575 Email t.damer@businesslinkyorkshire.co.uk
Barnsley and Rotherham - Constance Thorpe Mobile 07500 082565 Email c.thorpe@businesslinkyorkshire.co.uk
Doncaster and N & NE Lincolnshire - Paul Nevin Mobile 07500 082576 Email p.nevin@businesslinkyorkshire.co.uk
Sheffield - Susan Cornwell-Ball Mobile 07500 082577 Email s.cornwell-ball@businesslinkyorkshire.co.uk

Sources of Funding and Loans:

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Other Help

Further help is available from local support organisations and agencies.