Developing Capital Projects

1. Do you really need to buy or to build your own premises or to purchase a large computer network or buy your own mini bus?
2. Could you rent or share or lease the building or vehicle or equipment?
3. Assets can become liabilities! How will you fund the running costs?
4. “Act in haste repent at leisure!”
5. Plan well in advance - capital building projects can often take 2 years to fund raise and over a year to build.
6. Start with a community survey and engage professionals for a feasibility study
7. Draw up a Business Plan including a fundraising strategy.
8. Pay attention to “Project Planning”. You need drawings, Planning Permission, tenders or estimates, a contract, someone to supervise the building through to commissioning etc.

Some of the expert help you'll probably need:- Accountant, Architect, Building Contractor, Business Planning Consultant, Fund Raiser, Planning Supervisor, Quantity Surveyor, Solicitor, Structural Engineer …………

Capital Funding

• Begin by devising a business plan and produce a budget for both capital and the revenue costs of running the building. Don't forget that the professionals will need fees, sometimes this adds up to between 15% or even 17% of the project costs.
• Do you need to fund-raise the money? Could you borrow what you need and repay the loan from generated income?
• Consider the range of sources for capital funding projects e.g. Big Lottery Fund - Community Buildings, Grant Making Trusts, Government Departments. SRB6 is now in it's final period and once 'SRB6 Community Infrastructure' is spent the voluntary, community and faith based groups will need to find other sources of capital funds. Consider the range of sources for capital funding projects e.g. Big Lottery Fund - Community Buildings, Grant Making Trusts, Government Departments.

Revenue Funding

It is tempting to focus on the capital project and capital funding namely the building costs and the professional fees. However before building work starts third sector organisations need to be clear about the source of the revenue to run the building for the next 3 - 5 years. Most capital funders will want to know how you intend to obtain your revenue funds and will want some evidence that you have the technical competence to run the project.

Some useful 'on-line' sources of information about capital and revenue funding:-

www.trustfunding.org.uk
www.grantsonline.org.uk
www.grantnet.com.uk
www.funderfinder.org.uk
www.governmentfunding.org.uk
www.companygiving.org.uk

The Directory of Social Change publishes a range of useful handbooks and guides www.dsc.org.uk has their full publications list. Some examples:-

• The Grant-making Trusts CD-RO;105.75
• A Guide to the Major Trusts 2005/2006 Volume 1 Tom Traynor & Alan French ISBN 1 903991 55 2 £34.95
• A Guide to the Major Trusts 2005/2006 - Volume 2 Dave Griffiths, Chris McGuire & Rebecca Ryland ISBN 1 903991 56 0 £34.95
• The Directory of Grant Making Trusts 2005-06 ISBN 1 903991 58 7 Price: £95.00

They can be contacted by e-mail at books@dsc.org.uk. Tel: 08450 77770 Fax: 020 7391 4804

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