Archived decisions

Contact: Paddy Hillary, Ext: 7391

1. Summary

1.1 This report informs members of the proposals and discussions to establish a Community Foundation for Hampshire. The report recommends that the County Council endorse the proposals in principle and considers what support it might be able to provide for the Community Foundation as it develops.

1.2 The proposals also relate to the County Council's Best Value review of support for the voluntary and community sector which was considered by the Policy and Resources PRC in February and which agreed a recommendation to include consideration of the Community Foundation as one of a number of possible ways for the County Council to outsource its grant handling procedures.

2. Introduction

2.1 Community Foundations support the local voluntary and community sector, adapting the model of the charitable trust to enable many donors to collaborate in creating a permanent capital endowment fund for their area that generates income for grant-making. These donors can include individuals and families, companies, other charitable trusts and public sector bodies. There are currently 30 established community foundations in the UK and a further 30 in the process of being established.

2.2 The rationale behind the setting up of a community foundation is that it establishes an independent and representative body which can receive donations for investment and make decisions on grant aid for local voluntary and community organisations either in line with agreed local priorities and issues or, if requested by the donor, for a specific geographical area, purpose or field of activity. This is particularly helpful for either individual or company donors who wish to put money into the local area as it relives them of the need to set up any kind of administration, and if desired, they can retain anonymity. Equally, the community foundation can provide publicity for donors, usually commercial, to heighten local awareness or profile.

2.3 According to the national body, the Community Foundation Network, the key functions of the community foundation are to act as a fund developer by attracting donors, investing the funds to maximise the available income for grants, receiving and making judgements on grant applications and acting as a community focus. They can be flexible and responsive to local needs and are transparent and accountable though the representative board.

2 A Community Foundation for Hampshire

2.1 Following initial discussions with the Hampshire network of councils for community service, other voluntary bodies and the Community Foundation Network, Community Action Hampshire has led on the proposals for a community foundation for Hampshire since the end of 2000. A working group, chaired by Elizabeth Davis from Blake Lapthorn, has been set up and includes officers from the County Council, representatives from the CVS network, the Local Government Association, East Hampshire District Council and Lloyds TSB Bank.

2.2 The proposal is to establish a community foundation for Hampshire, ideally covering the whole of the county and the Isle of Wight. Guidance from the national body suggests that a foundation needs a critical mass of population of over 500,000. CAH have held encouraging initial discussions with Portsmouth and Southampton City Councils and the Isle of Wight Council and these authorities are currently considering their positions.

2.3 The working group has been looking at the legal and financial aspects of the foundation and identifying local individuals and companies to approach for investment funds to create the endowment fund. The group is also seeking trustees to form the board of the trust who will be responsible for managing the fund and making decisions on grant allocation.

3 The role of the County Council

3.1 Officers from the Chief Executive's Policy Unit and the Economic Development Office have been involved in the discussions so far, mainly in an advisory capacity. There are several ways in which the County Council, and indeed other local authorities, can play a role in the setting up and in the longer term development of the foundation and these include:

- contribution towards the start up revenue costs while the
endowment is being established

- direct grant giving - either as `flow through' grants or as a contribution towards the development of the permanent endowment fund

- in kind support such as office space, equipment, expertise or staff secondments

- nominating a representative as a trustee on the Foundation board

3.2 As members will be aware, the County Council has been undertaking a Best Value review of its own support for voluntary and community organisations and in February, the Policy and Resources PRC agreed to adopt the review option to improve the current service delivery and also to look further at the possibilities for using an outside agency, such as the proposed community foundation, to administer some grants on behalf of the County Council.

4 Conclusion

4.1 The creation of a community foundation in Hampshire will help to give a focus for charitable giving from sources such as individuals and private sector organisations and provide a permanent and flexible source of finance for voluntary and community bodies in addition to that already available.

4.2 The County Council has a considerable track record in working with and supporting voluntary and community sector organisations and the is an opportunity to be involved in another area of support, either directly by channelling funds through the foundation, or by acting as a trustee to help shape the direction of the foundation.

4.3 There are a number of issues still to be considered in relation to the County Council's own specific involvement in the foundation including the work to be carried out by the Best Value review team looking into the grant making process.

Recommendations

That the County Council agrees to support the creation of a Community Foundation for Hampshire

That officers be asked to continue discussions as to the nature of the support from the County Council.

Background Information

Section 100D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

File Community Foundation Working Group Location: Chief Executive's
Papers and Correspondence Department