A St Margaret's Partnership Chris Cook  June 2010  Sustainable Investment in St Margaret's
There are conventionally only two ways of raising finance for a charity...... 16/06/10
....donations and loans 16/06/10
Investment is almost  by definition  only  through a Limited Company.... 16/06/10
...which is what makes the 'Private Sector'  Private 16/06/10
St Margaret's Partnership will enable genuine investment in St Margaret's 16/06/10
NET's proposed investment framework is a UK Limited Liability Partnership (LLP) 01/06/10
An LLP is a corporate body with limited liability.... 16/06/10
...and...errrr...that’s it! 16/06/10
As far as the Tax Man is concerned it  is  a Partnership 16/06/10
It is now even used in the Public Sector, where Glasgow has five municipal LLPs 01/06/10
...which are a new variant of PPP 01/06/10
NET has developed the  Capital Partnership Capital Partnership Investors Customers Custodian % % £ 16/06/10 Managers
Embryonic Capital Partnership - Hilton Group  2002 Capital Partnership LLP 10 UK Hotels Gross  Revenues  Hilton Group Capi...
Investment in a  Capital Partnership  framework Capital Partnership Investors Customers Custodian % % £ 16/06/10 Managers
Equity Share  Units- % age shares in revenues or production... 16/06/10
Redeemable  Units  - redeemable in payment for production 16/06/10
Example: “The Art of Flirting” – a film incorporated as an LLP 16/06/10
The actors received “nth’s” of the  gross  revenues... 16/06/10
I got 5%...and the producer the rest... 16/06/10
...except that we needed lights, cameras, pizza, coffee...... 16/06/10
Two Capital Partners invested £10k for 20% of revenues.... 16/06/10
...if there are any 16/06/10
Art of Flirting LLP Art of Flirting Partnership Financial Capital (Investors) Viewers Custodian % % £ 16/06/10 Human Capit...
Everyone was on the same side 16/06/10
Example: Albion Trust...an Edinburgh charity 16/06/10
..which provides affordable office space for social enterprises  16/06/10
...due to demand they bought a disused church next door 16/06/10
...and planned a £4m development 16/06/10
But if they borrow, the rents will be unaffordable 16/06/10
NET's proposal - an Albion Partnership Albion Partnership Investors Occupiers Custodian % % £ 16/06/10 Managers
Let’s see how a St Margaret's Partnership might work 16/06/10
St Margaret's Partnership St Margaret's Partnership LLP Investor Parents Custodian % % Fees 16/06/10 Manager
School assets and business will be owned by the charity as custodian School Assets Custodian 16/06/10
Insolvent charity's creditors are current (unwilling) investors School Assets Charity Custodian Asset  Value 16/06/10
New Investors: parents, staff, alumni, 'friends' buy Equity Share  Units School Assets New Investors Custodian Investment ...
Staff and Administrators become a Manager - possibly as a Co-operative School Assets New Investors Manager Custodian Finan...
Outcome: Capital Partnership School Assets Investors Parents Custodian % % Fees 16/06/10 Managers
What is the proposition for Unit Investors? 16/06/10
Investors receive a proportional share in St Margarets'  Gross  revenues 16/06/10
Set at an initial 'Capital Rental' rate of (say) 3% ? 16/06/10
But this is not a fixed rate  16/06/10
It will rise and fall with St Margaret's  gross  Revenues  16/06/10
St Margaret's Partnership is not an  Organisation 16/06/10
It does not  own  anything,  do  anything,  employ   anyone, or  contract   with anyone 16/06/10
It is simply a framework within which the stakeholders self organise... 16/06/10
...to create St Margaret's Equity 16/06/10
Thank You 16/06/10
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St Margarets Partnership June 2010

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St Margarets Partnership June 2010

  1. 1. A St Margaret's Partnership Chris Cook June 2010 Sustainable Investment in St Margaret's
  2. 2. There are conventionally only two ways of raising finance for a charity...... 16/06/10
  3. 3. ....donations and loans 16/06/10
  4. 4. Investment is almost by definition only through a Limited Company.... 16/06/10
  5. 5. ...which is what makes the 'Private Sector' Private 16/06/10
  6. 6. St Margaret's Partnership will enable genuine investment in St Margaret's 16/06/10
  7. 7. NET's proposed investment framework is a UK Limited Liability Partnership (LLP) 01/06/10
  8. 8. An LLP is a corporate body with limited liability.... 16/06/10
  9. 9. ...and...errrr...that’s it! 16/06/10
  10. 10. As far as the Tax Man is concerned it is a Partnership 16/06/10
  11. 11. It is now even used in the Public Sector, where Glasgow has five municipal LLPs 01/06/10
  12. 12. ...which are a new variant of PPP 01/06/10
  13. 13. NET has developed the Capital Partnership Capital Partnership Investors Customers Custodian % % £ 16/06/10 Managers
  14. 14. Embryonic Capital Partnership - Hilton Group 2002 Capital Partnership LLP 10 UK Hotels Gross Revenues Hilton Group Capital User Consortium LLP Capital Provider Bank Property Developer Hotel Specialist % % % % %
  15. 15. Investment in a Capital Partnership framework Capital Partnership Investors Customers Custodian % % £ 16/06/10 Managers
  16. 16. Equity Share Units- % age shares in revenues or production... 16/06/10
  17. 17. Redeemable Units - redeemable in payment for production 16/06/10
  18. 18. Example: “The Art of Flirting” – a film incorporated as an LLP 16/06/10
  19. 19. The actors received “nth’s” of the gross revenues... 16/06/10
  20. 20. I got 5%...and the producer the rest... 16/06/10
  21. 21. ...except that we needed lights, cameras, pizza, coffee...... 16/06/10
  22. 22. Two Capital Partners invested £10k for 20% of revenues.... 16/06/10
  23. 23. ...if there are any 16/06/10
  24. 24. Art of Flirting LLP Art of Flirting Partnership Financial Capital (Investors) Viewers Custodian % % £ 16/06/10 Human Capital (Actors, Producer, Me)
  25. 25. Everyone was on the same side 16/06/10
  26. 26. Example: Albion Trust...an Edinburgh charity 16/06/10
  27. 27. ..which provides affordable office space for social enterprises 16/06/10
  28. 28. ...due to demand they bought a disused church next door 16/06/10
  29. 29. ...and planned a £4m development 16/06/10
  30. 30. But if they borrow, the rents will be unaffordable 16/06/10
  31. 31. NET's proposal - an Albion Partnership Albion Partnership Investors Occupiers Custodian % % £ 16/06/10 Managers
  32. 32. Let’s see how a St Margaret's Partnership might work 16/06/10
  33. 33. St Margaret's Partnership St Margaret's Partnership LLP Investor Parents Custodian % % Fees 16/06/10 Manager
  34. 34. School assets and business will be owned by the charity as custodian School Assets Custodian 16/06/10
  35. 35. Insolvent charity's creditors are current (unwilling) investors School Assets Charity Custodian Asset Value 16/06/10
  36. 36. New Investors: parents, staff, alumni, 'friends' buy Equity Share Units School Assets New Investors Custodian Investment in Units 16/06/10
  37. 37. Staff and Administrators become a Manager - possibly as a Co-operative School Assets New Investors Manager Custodian Financial Capital Human Capital 16/06/10
  38. 38. Outcome: Capital Partnership School Assets Investors Parents Custodian % % Fees 16/06/10 Managers
  39. 39. What is the proposition for Unit Investors? 16/06/10
  40. 40. Investors receive a proportional share in St Margarets' Gross revenues 16/06/10
  41. 41. Set at an initial 'Capital Rental' rate of (say) 3% ? 16/06/10
  42. 42. But this is not a fixed rate 16/06/10
  43. 43. It will rise and fall with St Margaret's gross Revenues 16/06/10
  44. 44. St Margaret's Partnership is not an Organisation 16/06/10
  45. 45. It does not own anything, do anything, employ anyone, or contract with anyone 16/06/10
  46. 46. It is simply a framework within which the stakeholders self organise... 16/06/10
  47. 47. ...to create St Margaret's Equity 16/06/10
  48. 48. Thank You 16/06/10

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