Raising cash for your project from the public sector

Anne Lythgoe writes: Having been immersed in public sector policy and strategy for many years, I hadn’t realised that things which I took as read may not be so clear to those outside the statutory sector.

In fact, ‘statutory requirements’ may actually be ‘statutory peculiarities’….

Earlier this year, I was welcomed into the network of Action Planning Associate Consultants to support Demonstrator Churches with their fundraising for net zero carbon projects. I quickly realised that the public sector is perceived to hold its cards very close to its chest in terms of what it might award funding for, appears to have hugely complicated rules and regulations to ensure ‘fairness and transparency’ and appears to have a seemingly impenetrable infrastructure of departments, agencies and tiers of government.

This blog presents some of the things that as an insider were ‘business as usual’ for me, but for others might seem new or strange. My aim is to provide points for reflection and possible work arounds when planning a fundraising strategy involving the public sector. I have used net zero projects as an example, but there is much that would apply here to any community project.

The first point to make is that statutory funding is public money, generally raised through taxation. This brings a legal requirement for fairness, transparency, accountability and scrutiny which is unparalleled from other funders. Ultimately MPs, Councillors and Mayors are elected on the basis of how the money that they control has been perceived to be spent. The regulations, checks and balances involved may make it appear that the public sector doesn’t really want to give you a grant.

But this leads me onto a second point – there’s actually very little money available to give out. The last 15 years or so has seen local authority spending on some services reduce by 40 % and many struggle to deliver the services they must provide by law, so there’s relatively little left over for, for instance, net zero grants, despite their increased focus on the climate catastrophe.

Spending public money is guided by a complex system of national, regional and local policy-

setting. This means that what is important varies from place to place. For example, the national government has set a target for Net Zero of 2050, but in Greater Manchester, the target is 2038 and in London it’s 2030.

My experience tells me that the award of public funding is very much driven by achieving outcomes – that is improvement for the local environment, economy or for people and communities, particularly those who need the most help and support. There’s also an increasing focus on ‘social value’, and although this is only mandated for formal procurement contacting, has crept into grant funding awards for many public authorities. So not only does an applicant have to explain why they want a grant and what for, they also need to be clear on what will change as a result and describe the ‘added value’ gained by awarding money to your specific organisation.  For net zero carbon, the primary policy driver nationally or funding for NZ projects is to increase energy generation by individual organisations, in local areas and in communities. This would contribute towards offsetting the increased pressure on the National Grid as the UK moves away from gas and oil and into electricity powered heating.

There is some statutory funding available for retrofit, but this has primarily been set aside for householders or for ‘public buildings’. As yet, there appears to be  no statutory funding available to our churches for retrofit such as replacement radiators or increased insulation.

 However, taking all the above into account, I strongly believe that there are ways that church projects could attract statutory funding. My tips for approaching statutory funding include:

 Do your research – if you are looking for local funding for example for net zero projects, find the ‘Environmental Strategy’ that covers your area. This might be a ‘Mayoral Combined Authority’ (like Manchester or West Midlands), a County Council (like Kent or Norfolk) or your own local authority (like Central Bedfordshire or Brighton and Hove). The award of statutory grants by these statutory organisations will be focussed on delivering the priorities outlined in their Strategy. Think about whether your project can deliver at least one of the priorities you have found and note that there’s no national standard requirement for an ‘Environment Strategy,  so you may find a different name for this document! National government policy is published by the Department for Energy Security and Net Zero and the latest publication is called the Carbon Budget and Growth Delivery Plan[1].

 

Build relationships with officers, MPs and Councillors – find the people in the statutory sector who will be supportive of your project. This might be your MP, your local Councillors or senior officers at your local authority. Invite them to visit and tell them your story in person – that’s often much more powerful than a written bid. Explain how supporting your project will make their money go further (as you already have ‘match funding’). 

Explore local partnerships and community solutions - talk to your local Council for Voluntary Services or Community Energy Group and find out whether there are other churches, community groups or enterprises working in your local area with whom you might share ideas, get support, or collaborate to raise funds. Can your church buildings offer a venue for community activities, or to deliver publicly funded services for example?

Working with other groups or institutions like schools or health services, will make you more attractive to statutory funders, and potentially open up other grants. Explore ‘shared’ projects – for example, a school might raise funding to have solar panels installed on its roof and batteries to store energy, from which a cable feed could supply electricity to your church.

Carry out qualitative research and keep records – use tools like Neighbours Survey to listen to your congregation and wider community. You can also speak to Action Planning about resources and tips for community audits. Find out what matters most to the people in your area and work together to create positive change. Don’t forget that local councillors and MPs are elected by the people in your congregation and the community who live around your church. Evidence that your project has support from local people will be powerful when applying for grants from the statutory sector.

Build a theory of change that isn’t just about achieving net zero – statutory authorities are nothing if not logical and love a ‘theory of change’. Think about the potential wider impacts on local people and communities which might arise from your NZ project. Could a warmer church attract more community use? Would you be able to host ‘wellbeing’ sessions for local people? Could you host cultural activities and concerts? (If you’d like to learn more about how to use a Theory of Change do contact us). 

Take the ‘Elmer’ approach – In the children’s book, Elmer hides his patchwork colours to a uniform grey to fit in, but gradually, as he builds community with those around him, the grey starts to wash off and reveal a patchwork of colours underneath. Could you think of your project as a series of different chunks, rather than trying not to do it all at the same time? Show it in stages? A phased approach to fundraising would suit applications to the statutory sector, who are likely to have smaller, time-limited or specifically targeted grants to apply for.

 

Action Planning is a well-established network of church and charity consultants based all over the UK, appointed by the Church of England to provide fundraising support to Stage 1 Demonstrator Churches for their Net Zero Carbon projects. These consultants and the others working alongside them bring decades of experience and expertise to support you.

Come and talk to us about your fundraising from statutory organisations.

 

 

---