Community foundations and asset based development, angus mc cabe, georgia conference april 2013


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Community foundations and asset based development, angus mc cabe, georgia conference april 2013

  1. 1. Hostedby:Fundedby:COMMUNITY FOUNDATIONSAND ASSET BASEDDEVELOPMENT: MODELS FROMEUROPE AND BEYONDAngus McCabeThird Sector Research Centre; University OfBirminghamCSRDG: Tbilisi 5th April 2013
  2. 2. 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 challengesWhat does this mean in Georgia, Armenia and Azerbaijan?
  3. 3. WHAT ARE WE TALKING ABOUT?• An asset based approach tocommunity/economic development including:Community FoundationsDevelopment Trusts (DTs)Community Land Trusts (CLTs)Community Development Finance (CDFI)Other models: Transition Towns/cashlesseconomies etc.
  4. 4. 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
  5. 5. 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
  6. 6. 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( - Hungary ‘100 Clubs’
  7. 7. 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
  8. 8. 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
  9. 9. 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)
  10. 10. USEFUL WEBSITES• Charles Stuart Mott Foundation:• Alliance Organisation (Eastern Europe) (but subscription only)• European Foundation Centre:• Global Fund for Community• Community Foundations Network:• NOTE- quality and currency of information onCommunity Foundations variable (assets/activity etc)
  11. 11. COMMUNITY LAND ANDDEVELOPMENT TRUSTS• Promote community ownership of local assets;initiatives range from;Affordable housing schemesManaged workspace and employment trainingGreen energy programmes (from power generation, torecycling)Land management (forestry) and food productionVillage shops/the ‘pub is the hub’ (Culture House model inEastern Europe?)Or…own your local football club!!!
  12. 12. WHY ASSET BASEDCOMMUNITY DEVELOPMENT 1• Principles: Community Foundations,Community Land/Development Trusts;Are locally driven, controlled and accountableMeet local needs (flexible and responsive)Address economic, social and environmentalissues (social benefit)Involve partnership solutions across sectorsAre sustainable (beyond grants/aid/policychanges) – ‘in perpetuity’
  13. 13. WHY ASSET BASEDCOMMUNITY DEVELOPMENT 2• Practical:Cuts to international aid – ending of a ‘grant’ cultureCuts in the EU to government support for NGO’s andcommunity servicesWorking ‘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
  14. 14. 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
  15. 15. 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
  18. 18. 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
  19. 19. EXAMPLES
  20. 20. 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
  21. 21. 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 contextWhat is it feasible/possible to achieve?Other questions……?
  23. 23. FURTHER INFORMATION••••••• Or contact•
  24. 24. AND FINALLY….• Thanks to the Community DevelopmentJournal for supporting this event.• For access to free Community DevelopmentJournal papers, reports, events and resourcesvisit• For access to free Third Sector ResearchCentre resources visit