Community foundations and asset based development, angus mc cabe, georgia conference april 2013
Hostedby:Fundedby:COMMUNITY FOUNDATIONSAND ASSET BASEDDEVELOPMENT: MODELS FROMEUROPE AND BEYONDAngus McCabeThird Sector Research Centre; University OfBirminghamCSRDG: Tbilisi 5th April 2013
THIS SESSION WILL……• Explore:Different Community Trust models from across Europe:Community Foundations, Land Trusts, DevelopmentTrusts, Transition Towns…….What asset based community development does?Why asset based models of community economicdevelopment?Funding: what’s different?Benefits, opportunities and challengesWhat does this mean in Georgia, Armenia and Azerbaijan?
WHAT ARE WE TALKING ABOUT?• An asset based approach tocommunity/economic development including:Community FoundationsDevelopment Trusts (DTs)Community Land Trusts (CLTs)Community Development Finance (CDFI)Other models: Transition Towns/cashlesseconomies etc.
A SHORT HISTORY• First Community Foundation: Cleveland Ohio – 1914• UK – origins in 1970’s• Post Soviet Foundations – 1991 onwards• Development and Community Land Trusts Origins in the ‘enclosure of the commons’ C18th/C19th;industrialisation and transfer of ‘common/shared land’ to privateownership C19th movement; land trusts to house industrial workers (modelvillages – Cadbury family in Birmingham/Joseph Rowntree in York) andCommon’s Preservation Societies (parks and woodlands) US origins in 1960’s and Institute of Community Economics
COMMUNITY FOUNDATIONS: MISSION AND MODELS• Mainly US and EU model (European Foundation Centreestablished 1989: 23 in Germany, 5 in Turkey, 4 in Russia, 3Ukraine)• UK/European model differs from US – greater reliance onFoundations created by individuals (Bill Gates)Vary in: income (few thousand £/$) to multi-million investment/endowmentportfolios scope/scale (some with paid staff – others – volunteerorigins/continued reliance on volunteers) population coverage across Europe: from (rural) – few thousandpopulation Birmingham/Black Country – 2.25 million
COMMUNITY FOUNDATIONS;MISSIONMission:Co-ordination of funding/resources for maximum communitybenefit Combining corporate giving, philanthropy, individual givingand ‘through funding’ (eg EU/Government and aid funds) Developing ‘matched funding’ models to enhanceeffectiveness (UK Challenge model) Attract international corporation sponsorship (usually onlyin counties/areas where corporations are operating(www.alcoa.com) - Hungary ‘100 Clubs’
COMMUNITY FOUNDATIONS:ADVANTAGES Strategic co-ordination of funding – ‘co-ordinated philanthropy’ Maximising impact and effectiveness: donor and beneficiary Transparency in decision making Beyond ‘pre-set’ government/aid/grant giving agendas Local intelligence (what works) and ‘efficiency/impact’ advice Funding innovation: new projects and approaches beyond ‘theestablished’ Long term relationships between donors, Foundations andbeneficiaries – a developmental relationship – not fund and monitor INITIAL EVIDENCE: surviving the economic climate better than‘traditional’ funders (despite decline in corporate andindividual/philanthropic giving and corporate sponsorship
COMMUNITY FOUNDATIONSEXAMPLES: 1• UK – Birmingham and the Black Country CommunityFoundation: disability, access to education andtraining, environment, family support - in 2010-11 grants of£1.8 million to 511 groups• Poland – 32 Foundations with combined assets of $508million (network founded 1998)• Priorities development of local communities youth involvement senior citizens corporate community involvement social enterprise
COMMUNITY FOUNDATIONS:EXAMPLES: 2• Romania – 2 Foundations: Cluj & Oderheiu CommunityFoundations: Example -Youth Bank- youthengagement, education and cultural activities (15,000 ROM);mainly volunteer based• Ukraine – collective assets of around $500,000: focus onpeople trafficking, rural-urban migration, cancer, mediareform• Hungary: well developed – but some very small/volunteerbased groups (Ferencvaros Community Foundation – 2009 –start up phase to 2011 – income 32,000 euros)• Networked model: Poland – Slovakia (Association of SlovakCommunity Foundations)
USEFUL WEBSITES• Charles Stuart Mott Foundation: www.mott.org• Alliance Organisation (Eastern Europe)www.alliancemagazine.org (but subscription only)• European Foundation Centre: www.efc.be• Global Fund for Community Foundations:www.globalfundcommunityfoundations.org• Community Foundations Network:http://ukcommunityfoundations.org• NOTE- quality and currency of information onCommunity Foundations variable (assets/activity etc)
COMMUNITY LAND ANDDEVELOPMENT TRUSTS• Promote community ownership of local assets;initiatives range from;Affordable housing schemesManaged workspace and employment trainingGreen energy programmes (from power generation, torecycling)Land management (forestry) and food productionVillage shops/the ‘pub is the hub’ (Culture House model inEastern Europe?)Or…own your local football club!!!
WHY ASSET BASEDCOMMUNITY DEVELOPMENT 1• Principles: Community Foundations,Community Land/Development Trusts;Are locally driven, controlled and accountableMeet local needs (flexible and responsive)Address economic, social and environmentalissues (social benefit)Involve partnership solutions across sectorsAre sustainable (beyond grants/aid/policychanges) – ‘in perpetuity’
WHY ASSET BASEDCOMMUNITY DEVELOPMENT 2• Practical:Cuts to international aid – ending of a ‘grant’ cultureCuts in the EU to government support for NGO’s andcommunity servicesWorking ‘beyond the state and the market’Reaction to globalisation – and/or World Bank interest inasset based community development (Africa)Reaction to privatisation of local economies and services
SIZE, SCOPE AND NUMBERS• Range from small scale, one off, initiatives to multi-million £ programmes• Can involve paid staff or rely on volunteers• Mixed finance models: trading/grants/loans etc• The numbers: 54 Community Foundations in UK• Just over 100 Community Land Trusts (240 in USA)and 150 Development Trusts• 458 Transition Towns globally• Context - over 172,000 registered charities inEngland and Wales
OTHER MODELS• Transition Towns: promote local economicactivity (non-corporate) in terms of foodproduction, ‘shopping’ and energy supply• Alternative ‘cash’ systems – Totnes £,• Brixton £ and Local Exchange Trading Schemes(LETS)• The Anarchist solution: Denmark, Slovenia etc:occupation of disused State buildings to set upalternative economic systems
FINANCE MODELSCommunity Foundations/Asset Based Development requires adifferent financial/business model: Start up/feasibility grants/money – yes but; Loans (commercial or Community Development FinanceInitiatives) as well as grants Asset transfer (no/low/commercial) cost Community shares Endowments Remittances (£23billion UK – payments back to country of origin – £123billion Russia/US to Georgia) Community bonds Cross-subsidy Crowd funding
OPPORTUNITIES AND CHALLENGES• Beyond ‘policy change and aid’• Sustainable community ownership• Finance – within the community – not ‘flowingout’ of communities• But• Access to start up and working capital (poorcommunities)• Skills required• Sustaining commitment
WHAT DOES THIS MEAN…..?• Some key questions:What are the opportunities for these approachesin your context?What might the challenges and barriers be?What might help/facilitate the development ofthese approaches in your contextWhat is it feasible/possible to achieve?Other questions……?
COMMUNITY LAND TRUST VIDEOS• http://www.communitylandtrusts.org.uk/See-it-and-Believe-it/CLT_Films• http://www.communitylandtrusts.org.uk/See-it-and-Believe-it/rural-case-studies/Lyvennet_Community_Trust• http://www.communitylandtrusts.org.uk/See-it-and-Believe-it/rural-case-studies/high-bickington
FURTHER INFORMATION• www.tsrc.ac.uk• www.communitylandtrusts.org.uk• www.dtascot.org.uk• www.locality.org.uk• www.efc.be• http://www.transitionnetwork.org• Or contact• email@example.com
AND FINALLY….• Thanks to the Community DevelopmentJournal for supporting this event.• For access to free Community DevelopmentJournal papers, reports, events and resourcesvisit http://www.oxfordjournals.org/cdjc• For access to free Third Sector ResearchCentre resources visithttp://www.tsrc.ac.uk/Research/KnowledgePortal/tabid/840/Default.aspx