Bridging Fund 2008

In 2008 The Trustees of the Foundation undertook a strategic review of its grant making priorities with a view to developing a new three year funding criteria to operate from April 2009 - March 2012. Whilst this work was underway, the Trustees established a 'Bridging Fund' from which to make grants towards work which bridged between the previous criteria (which focused on domestic violence, prisoners' families, and young offenders) and the new one being developed (which focuses on housing and financial inclusion).

The Foundation identified and agreed the following funding opportunities in 2008-09:

• Runnymede Trust - £50,000 towards diversity related financial inclusion research and a conference
• Toynbee Hall - £100,000 towards a project with the Women's Trust to enable refuge staff to provide victims of domestic violence with financial related support
• Volunteering England - £100,000 towards the second year of a three year project also funded by Capacity Builders called 'Non-Financial Support'. This continues previous work of the Foundation into how charities and businesses can work together more effectively for increased mutual benefits. The work funded will see the implementation of pilot projects to achieve this.
• Corston Independent Funders Coalition - £5,000 towards an eighteen month post, developed by a group of like-minded funders, in which the Foundation is included, to respond to the findings of the government's Corston Report about addressing the needs of vulnerable female offenders. This is a unique project and the first time a group of funders have come together to address a social issue in this way.
• Community Land Trust Fund - £37,500 towards this Fund of over £2m which has been contributed by Tudor Trust, Esmée Fairbairn Foundation and the Charities Aid Foundation to support new and existing Community Land Trusts. A Community Land Trust (CLT) is a community group which provides affordable housing to local residents by selling them long leases on houses for much less than the normal market price because of innovative interventions e.g. by the CLT retaining ownership and value of the land on which the houses stand.

• Runnymede Trust
  

  The Runnymede Trust is an independent policy research organization focusing on equality and justice through the promotion of a successful multi-ethnic society. Founded as a Charitable Educational Trust, Runnymede has a long track record in policy research, working in close collaboration with eminent thinkers and policymakers in the public, private and voluntary sectors.

  Despite growing research and policy agendas aimed at tackling financial exclusion, there is virtually no research, data collection or analysis on levels and experiences of financial exclusion by ethnicity. Policies to tackle financial inclusion among BME communities will be effective only if they accommodate the diverse circumstances and preferences of differing groups. A recent report by Runnymede Trust called Financial Inclusion and Ethnicity suggests that taking a more individual approach, one that focuses on personal well-being, autonomy and social justice, will facilitate new, and more responsive, solutions to financial exclusion.

  The work which the Foundation is funding will fill some of the knowledge gaps and also ultimately lead to greater financial inclusion and wellbeing for BME and other people in the UK. Specifically, a grant of £50,000 has been made towards researching financial issues affecting BME groups which will be disseminated among policy makers. These are:

  • Savings - BME groups have lower rates of savings, less diverse savings, and lower amounts of savings. The research will aim to develop policy for responding to this 'savings gap', and so increase the financial inclusion of BME people in Britain.
  • Financial Advice - While evidence suggests that people access advice differently, it is not known how this impacts on ethnicity, though all BME groups are more willing to pay for financial advice than white groups. The project aims to increase awareness among BME communities of advice organisations, local authorities and financial institutions who can help them
  • Savings (Pensions) - Runnymede has already contributed substantially to the debate on pensions policy. Research has highlighted the role of self-employment for many BME groups, especially their self-employment in particular sectors of the labour market (e.g. catering). To understand the impact of pensions policy, it is necessary to understand how it impacts on these sorts of groups.

  The Foundation's grant is also supporting a national conference based on the main themes of their report Financial Inclusion and Ethnicity - age, disability, sexual orientation, race, gender. There are clear cases where particular human characteristics disadvantage a person in terms of risk-scoring e.g. access to bank accounts for those on probation; high insurance premiums for gay and lesbian travellers etc. The conference aims to invite experts, academics and representatives from financial institutions to discuss the political and ethical limits of statistical risk scoring and whether market principles can conflict with important social goods such as cohesion and social justice.

• Toynbee Hall in Partnership with the Women's Trust
  

  Since it was founded in 1884, Toynbee Hall has been responding to social need in the East End of London with innovative projects that help individuals and communities to overcome problems and fulfill their potential. Their work tackles financial poverty plus poverty of opportunity and aspiration.

  Toynbee Hall has been working with staff and service users of various domestic violence agencies over the past few years. They have seen that women who have experienced domestic violence are particularly isolated from services and the social networks that people often rely on for support, advice and information about money. Previous experiences of violence and financial abuse affect women's self-esteem and decision making around money and may also mean they have had little or no experience of managing money.

  Research by the Home Office has found that domestic violence affects 1 in 4 women at some point in their lives and research carried out by Refuge found that 89% of respondents had experienced economic (financial) abuse as part of their experience of domestic violence. Refuge also found that 1 in 3 women accessing their services do not have a bank account. Financial needs of women after they have left a violent partner have been identified by Refuge as: little experience of using financial institutions, lack of confidence in claiming welfare benefits, limited experience of budgeting, problems managing debts and a lack of information to support their financial needs.

  The project which the Foundation is funding is a partnership between Toynbee Hall and the Women's Trust, a London based counselling and support service for women who have been affected by domestic violence. The project aims to support refuge staff to deal with the financial exclusion faced by victims of domestic violence when they enter a refuge. It also aims to equip survivors of domestic violence with the skills needed to manage their money as they move back to independent living.

  The first part of the project will equip support staff within refuges to deliver financial capability support specifically around accessing bank accounts and signposting for debt and welfare benefits support. These areas are seen to be crucial for those at a crisis point entering a refuge. The work will be delivered through a rolling programme of training for staff within refuges. The specialist trainer will also be available by telephone to support the refuge staff after the training.

  The second part of the project is to support women to move confidently towards financial independence by giving them a 10 week course which looks at some of the holistic sides to financial inclusion such as confidence and independence alongside the practical aspects of managing money. The project will combine the approach of counselling and therapeutic group work with skills knowledge and confidence building.

  The project's outcomes are for:

  • Service users to report increased confidence in managing their money
  • Service users to report increased financial capability
  • Service users to access basic financial products
  • The project to demonstrate clear delivery mechanisms that can be replicated when working with victims of domestic violence

  Toynbee Hall intends to publish the findings of the work and this will be used to showcase best practice from the project with the intention of demonstrating clear models of delivery that can be rolled out across domestic violence practitioners.

• Volunteering England
  

  Volunteering England was formed in April 2004 following a merger between The Consortium on Opportunities for Volunteering, The National Centre for Volunteering and Volunteer Development England. It is the national volunteering development agency for England, committed to supporting, enabling and celebrating volunteering in all its diversity. Their work links research, policy, innovation, good practice and grant-making in the involvement of volunteers. Its members and partners range from national charities to voluntary agencies across the length and breadth of England; from NHS Trusts to arts organisations; from local community projects to government think-tanks. Volunteering England brings ideas and people together, develops better networks and structures, and initiates projects to support volunteering in a wide range of fields, such as health and social care, sport and employer supported volunteering.

  In 2007, the Nationwide Foundation, together with the Abbey Charitable Trust and Volunteering England undertook a piece of research into how well charities and businesses work together and which helped identify how businesses can better support charities. The research is called Developing Understanding Around Non-Financial Support and was carried out by the Smart Company, now called Corporate Citizenship.

  Volunteering England is now taking this work further as part of a larger project funded by Capacity Builders, the Modernising Volunteering National Support Service, which will equip local/regional infrastructure organisations with the skills, knowledge and tools needed to increase the quality, quantity and accessibility of volunteering opportunities. The continuation of the Non-Financial Support work is one of four strands of this. It is a three year project with Capacity Builders funding the first and third years of the work and the Nationwide Foundation funding the second year. Year 1 involved Corporate Citizenship undertaking further research which builds on 'Developing Understanding Around Non-Financial Support'. Year two involves the piloting of projects which have been identified and recommended through the additional research undertaken in year one, which are designed to engage businesses and charities and help them work in partnership. In year three the project will undertake awareness raising of how charities and businesses work better together and what the demonstrate what the benefits are.

• Corston Independent Funders Coalition

  In June 2008, the Nationwide Foundation together with a group of independent foundations, led by Teresa Elwes of the Bromley Trust, wrote a letter to Jack Straw MP as Lord Chancellor and Secretary of State for Justice calling for the recommendations of the Corston Report to be implemented. The report was written by Baroness Corston for the Government and highlights the real issues affecting vulnerable female offenders and how they should be treated for better outcomes on all sides. It provides a constructive series of recommendations suggesting a rethink in the way we treat vulnerable women. It received widespread media, political and sector support.

  Almost 18,000 children are affected each year by the imprisonment of their mother, with only 5% remaining in the family home leading to an increase of intergenerational crime and abuse, whereas the vast majority of the children of male prisoners remain in their own homes, cared for by their mothers. The latest statistics show that more women are sent to prison for theft and handling stolen goods than any other crime and that 63% received less than six months. The damage caused to both women and children far outweigh the risk the women pose to society.

  An announcement was made on 10 December 2008 by Justice Minister Maria Eagle MP confirming that Government had launched a report detailing the government’s commitment to bring about real improvements for women offenders.  The report included a commitment to provide: “additional resourcing in the New Year to divert vulnerable women, who are not serious or dangerous offenders, from custody. We plan to reduce the number of women in prison and to provide additional services in the community for women offenders and women at risk of offending”.  This was followed in February 2008 by a commitment from government of £15.6m ring fenced towards such work.

  Prior to these encouraging announcements, many of the foundations which signed the letter to Jack Straw MP, including the Nationwide Foundation, held a series of meetings to agree how they could take action to directly bring about change in response to the Corston Report. As a result, they have agreed to collectively develop a post and fund a worker (for 18 months) to work with independent funders and Government with an aim to implement the recommendations from the report.

  This is a unique approach - funders working together in this way is unprecedented and may lead to similar strategies in the future. It also highlights to Government that independent funders are committed to taking action and are determined to work with them to address social issues.

• Community Land Trust Fund

  What is a Community Land Trust (CLT)?

  • CLTs are community organisations which seek to provide affordable housing that closely meets the needs of local communities. CLTs seek to ensure the properties they develop are permanently affordable by their occupiers and in the (part) ownership of the community.
  • Affordability is typically achieved using resources within the community, rather than from government subsidy. This may be through charitable gift e.g. a local farmer offers a field on the edge of a village as a gift; below market price sale of land or completed properties; community bond and share issues.
  • The occupiers of the properties either rent the property or borrow a mortgage to buy on a shared ownership basis with the CLT.
  • More information and background to the CLT movement can be found at www.communitylandtrust.org.uk or communitylandtrusts.ning.com

  Why has the CLT Fund been created?

  CLTs face two significant barriers to their development:

  • difficulty accessing professional and technical skills around construction project management, and business planning - which are not always available in the local community; and
  • a lack of access to loans to provide such housing.

  The Community Land Trust Fund has been created to address both of these barriers. The Fund has three parts, representing support for a pipeline of emerging CLT projects:

  

  The Feasibility and Technical Assistance parts represent grants to be made for such support. Risk capital relates to loans, akin to mortgages.

  Who is involved?

  The Fund launched in October 2008, with £2m committed from:

  • Esmée Fairbairn - £1,000,000
  • Tudor Trust - £750,000
  • Charities Aid Foundation (CAF) - £250,000

  In March 2008 the Nationwide Foundation also agreed £37,500 towards the Fund to be used as grants for feasibility and technical assistance work.

  The Tudor Trust is managing the Feasibility and Technical Assistance grant funds on behalf of all the funders. Venturesome at CAF is managing the Risk Capital (loans). An investment committee has been established meets monthly, with members nominated by each of the funders plus an independent member with housing expertise - Ken Bartlett OBE.

  The objectives of the fund are:

  • To facilitate the delivery of a range of social benefits associated with housing models where affordability is a permanent feature through the financing of CLT housing developments
  • To work alongside commercial funds to finance the building and occupation of additional homes using a range of CLT models
  • To establish a body of information about the financial performance of CLT developments e.g. the loss rates on investments, the range of financial returns achievable, the range in size of CLTs' financial needs.

  Thereby:

  • increasing the proportion of total scheme funding provided by commercial sources;
  • attracting additional risk capital from public, private or charitable sources to CLT developments.

  The fund aims to develop at least 150 new units of community owned housing in the UK with affordability-in-perpetuity enshrined. The Foundation's grant will assist with this work.