Spotlight on the Midlands

Unity Trust helps meet funding challengesCharities and social enterprises in the Midlands are at the forefront in tackling some of the problems caused by the decline of the region’s traditional industries and helping vulnerable groups. With our expertise in the not-for-profit sector we have built excellent relationships with many of our customers.

The link between Unity Trust Bank and these charity and social enterprise customers is Mark Ferguson and Mark Wilton, our development managers for the region. Relationship manager Nigel Price is also a familiar face to several of these customers that have accessed loan finance from the bank.

Unity Trust Bank, helping charities and social enterprises develop new ways of generating income.

Birmingham Voluntary Service Council (BVSC)BVSC (Birmingham Voluntary Service Council) is one of the largest voluntary sector support organisations in the UK. It provides voluntary and community organisations with advice, help and resources, as well as championing volunteering in the city.

Unity Trust was able to help BVSC in the redevelopment of its Digbeth headquarters, close to the city centre with a loan. The

project, which also received grant funding from the ERDF, created new conferencing facilities in a back extension to the building.

Since then, the location has become increasingly popular, due partly to BVSC’s closeness to the ambitious redevelopment of the Bull Ring shopping centre. Thanks to a capital grant, the front-of-house area was refurbished to

Nigel Price and Mark Ferguson, Unity Trust talking to Brian Carr, Cheif Executive, BVSC in front of their new premises, with the Selfridges building in the background.

boost the charity’s professional image and create a modern resource centre for volunteers and organisations.

“We hire the conference facilities out to other charities and they have proved very popular, thanks to our central location and the rising profile of this neighbourhood,” says corporate services director Jasbir Rai.

“The conference income brings in about £80,000 in profit each year.” says Jasbir. She adds that developing alternative income streams is becoming increasingly important for charities such as BVSC, given the tighter funding environment.

’It provides voluntary and community organisations with advice, help and resources, as well as championing volunteering in the city.’

ARTBirmingham-based ART (Aston Reinvestment Trust) is one of the UK’s most successful community development finance institutions (CDFIs). This year it celebrates its 10th birthday and has lent more than £5m in total to small businesses and social enterprises in the areas that can’t get normal bank finance.

Unity Trust provided a £500,000 loan in January 2006 and recently agreed a further £500,000 loan to help ART in its onward lending. Unity’s loans are provided with the benefit of community investment tax relief (CITR).

ART chief executive Steve Walker says: “We’ve always had a very good experience with Unity Trust in the other banking services it has provided us, so going to

them for loan finance made a lot of sense.”

He adds that at local level Unity Trust is the only bank to really understand how a social enterprise

works: “A lot of banks may have people in head offices who are knowledgeable, but the local branch staff have a very limited understanding of the sector.”

ART’s strategy is to help achieve regeneration of communities by taking a more flexible approach to lending. “We fill the gaps in available finance,” says Steve. The main challenge for ART and other CDFIs is raising awareness among potential borrowers and the referral network, he says, so that deal flow is maintained.

The fact that ART is 10 years old means it has demonstrated that its approach works and it has established a track record in making loans and re-paying money borrowed from charitable foundations and other community finance organisations.

“The Unity Trust loan was the first fully commercial loan we’ve taken out and it shows how far we’ve come that we’re in a position to borrow £1m, as we couldn’t have considered that in the early years,” says Steve.

ART HomesART Homes is a not-for-profit organisation that provides affordable loans to low-income homeowners to carry out essential repairs and maintenance. It was set up to fill the financing gap for people who could not access mainstream bank finance and because grants from local authorities for repairs were being phased out.

ART Homes recently moved its revenue account to Unity Trust Bank, which also provides an account for the pool of money from local authorities, which ART Homes lends to homeowners. “We’re very happy

with the banking services from Unity Trust because we get a good interest rate without having to constantly shift money between accounts,” says programme manager Samantha Allin.

She adds that the organisation is also impressed with Unity Trust’s online banking service: “Because we’re not-for-profit we need the security of two signatories for financial transactions, and the internet service offered by Unity Trust allows us to do that.”

ART Homes is a member of the West Midlands Kick Start Partnership which had its work recognised recently as winner of the UK Housing Awards 2006 in the category of ‘Excellence in Delivering Mixed Communities’.

ART Homes has grown dramatically in recent years. In 2005-06 it made 177 loans totalling £2.6m and in 2006-07 336 loans totalling £5.5m.

ART Homes was set up by Aston Reinvestment Trust and is now a wholly owned subsidiary of Mercian Housing Association. It works in partnership with local councils in the Midlands, Merseyside and Edinburgh.

l-r Nigel Price, Unity Trust, Steve Walker and Andy King (ART), and Mark Ferguson, Unity Trust

l-r Samantha Allin and Graham Wood (ART Homes), Mark Ferguson and Nigel Price, Unity Trust in Victoria Square, Birmingham

‘We’re very happy with the banking services from Unity Trust because we get a good interest rate without having to constantly shift money between accounts.’

‘Unity Trust is the only bank to really understand how a social enterprise works. A lot of banks have local branch staff have who have a very limited understanding of the sector.’

Community TransportWhen charity, Community Transport was looking for match-funding of the £225,000 it had raised from European Funding to enable it to buy new premises in Bilston, Wolverhampton, it turned to Unity Trust.

Community Transport runs 11 transport-related projects in England, seven of which are in the Midlands. As well as its passenger services and driver training, the charity runs furniture recycling projects in which it collects items and distributes them to vulnerable groups.

“We went to Unity Trust because we’d moved our current account banking to them the previous year and been very happy with the service, as well as the fact that they’re experts in the voluntary sector,” says head of finance and resources Alan Hoggard, adding that the fact Unity Trust is a Midlands-based organisation helped.

“We’ve been doing the furniture recycling for 40 years and income from that helps support our other activities. Community Transport in Wolverhampton has expanded in recent years, so we needed bigger premises and found this property in Bilston,” says Alan, adding that the charity wanted to expand its recycling and training activities.

The purchase and refurbishment of the warehouse have enabled the charity to expand its recycling and its driver training. It also allows the charity’s vehicles to be parked in secure parking. Community Transport is repaying the loan with income generated by its services.

The warehouse is only the second property the charity has owned, says Alan: “It gives us some further security because it means we now have an asset worth £500,000.”

Headway West MidlandsHeadway West Midlands, a charity that supports people with acquired brain injury is planning to expand its services after having bought its first property with the help of Unity Trust.

In early 2007 the Birmingham-based organisation bought a dilapidated grade 2 listed building near the former Longbridge car plant. The property cost some £200,000 but will need about £350,000 spending on it to bring it up to standard. The move will enable the charity to support 300 more people with brain injuries in the region each year.

Headway West Midlands secured around £400,000 funding from a Lottery grant, donations and its own resources but needed a loan to guarantee the project. Treasurer John Barnes says: “We expect to raise further funds from a charitable trust towards the modernisation of the building, but it’s great to know the Unity Trust money is there if we need it.”

The charity did not approach any other banks for the loan, says John: “I knew about Unity Trust and that they were experts in the voluntary sector and they were very easy to talk to. We knew we wouldn’t get a better deal elsewhere.”

Headway West Midlands is currently carrying out some of the refurbishment and hopes to move into the building in the summer of 2007. “It feels like a big step buying our first property but it will provide more space for our services, as well as giving the charity an asset for the future,” says John.

l-r Nigel Price, Unity Trust, John Barnes (Headway West Midlands) and Mark Ferguson, Unity Trust examine plans for renovating Headway West Midlands’ new building

‘I knew about Unity Trust and that they were experts in the voluntary sector and they were very easy to talk to. We knew we wouldn’t get a better deal elsewhere.’

‘We went to Unity Trust because we’d moved our current account banking to them the previous year and been very happy with the service, as well as the fact that they’re experts in the voluntary sector.’

West Midlands Special Needs TransportWest Midlands Special Needs Transport (WMSNT) has banked with Unity Trust since it was set up in the 1980s. “Our trustees liked the fact that Unity Trust had strong links with charities and social enterprises, and with trade unions,” says company secretary John Frater.

“We’ve been very happy with our banking from Unity Trust. They’ve helped us structure our accounts so that we receive interest on all but a small proportion of our funds that is needed for day-to-day operations.” He adds that the organisation has always found Unity Trust responsive in adapting its services to meet the charity’s changing needs.

WMSNT is the third-largest organisation in the world providing transport for people with mobility problems. Its Ring and Ride service provides around 1.8 million trips a year in the region. A further 200,000 trips are provided for children with disabilities to get to special schools.

It is the bank’s biggest charity customer in the region, with a turnover of around £15 million a year. About two-thirds of this is from the local authorities that use the Ring and Ride service, and the rest from commercial contracts.

The biggest challenge the charity faces, says John, is getting the best use out of limited resources: “We’re always looking at ways to deliver our services more efficiently and be more cost-effective.”

Headway Worcester TrustThe Headway Worcester Trust, which supports people affected by acquired brain injury, has benefited from two Unity Trust loans that have helped the charity expand its services dramatically.

In 2003 the charity borrowed around

£150,000 towards the cost of purchasing and converting a bungalow into supported accommodation for four people. Later the same year it borrowed £80,000 towards buying its own headquarters.

Treasurer Paul Griffith says: “The acquisition and conversion of the bungalow was important because it allowed us to help people with more severe needs than we would otherwise have been able to do.”

The decision to buy premises for the charity was also a change of direction, “We’ve always rented in the past but have grown dramatically in recent years and we were bursting at the seams.”

Acquiring two freehold properties was a major step forward that we couldn’t have contemplated without help from Unity Trust,” says Paul.

In both cases the timing was right for loan

finance, he adds. For example, when the charity purchased the bungalow it had the promise of funding from the government’s Supporting People initiative. “Without the Unity Trust loan, we’d have missed out on that important opportunity,” he says.

In 1990 the charity had two part-time staff, six volunteers and 12 clients. Today’s operation has 55 staff, four housing schemes supporting 68 tenants, an outreach team and a day opportunities facility.

Paul says: “The loan finance from Unity Trust made a real difference – it has helped us develop our assets and that has given us extra security. It also means that funders and other stakeholders take us more seriously because they can see we’re here to stay.”

Foreground: Nigel Price, Unity Trust and John Frater, West Midlands Special Needs Transport

For more information on how Unity Trust might be able to help your organisation, contact:

Mark Wilton Unity Trust Bank plc PO Box 1487, Stafford ST16 3GJ Tel: 01785 252586 Email: mark.wilton@unity.co.uk

Mark Ferguson and Nigel Price Unity Trust Bank plc Nine Brindleyplace, Birmingham B1 2HB Tel: 0121 616 4100 Email: mark.ferguson@unity.co.uk, nigel.price@unity.co.uk

Mark Wilton and Mark Ferguson, Unity Trust either side of Mark Davies, client of Headway Worcester Trust.

‘Our trustees liked the fact that Unity Trust had very strong links with charities and social enterprises.’

‘Without the Unity Trust loan, we’d have missed out on that important opportunity.’

Who’s onyour doorstep?

London & East Anglia

Sean TaylorUnity Trust Bank plc. Congress House, 23-28 Great Russell Street, London WC1B 3UBTel: 020 7462 5604Email: sean.taylor@unity.co.uk

Yorkshire & Humberside

Yvonne BramallUnity Trust Bank plc. 73 West Street, Sheffield, S1 4EQTel: 0114 272 3024Email: yvonne.bramall@unity.co.uk

Midlands, Wales & South West

Mark FergusonUnity Trust Bank plc.Nine Brindleyplace, Birmingham B1 2HBTel: 0121 616 4105Email: mark.ferguson@unity.co.uk

Midlands

Mark WiltonUnity Trust Bank plc.PO Box 1487, Stafford ST16 3GJTel: 01785 252586Email: mark.wilton@unity.co.uk

North West & Northern Ireland

Peter ForsterUnity Trust Bank plc.PO Box 628, Stockport, SK4 2WDTel: 0161 432 9077Email: peter.forster@unity.co.uk

London & South East

Mark HerbertUnity Trust Bank plc. Congress House,23-28 Great Russell St, London WC1B 3UBTel: 020 7462 5601Email: mark.herbert@unity.co.uk

National Charities Manager

Mark DaviesUnity Trust Bank plc. Nine Brindleyplace, Birmingham B1 2HBTel: 0121 616 4301Email: mark.davies@unity.co.uk

Scotland

Vince McErlaneUnity Trust Bank plc. 4 Mill Road Industrial Estate, Linlithgow, West Lothian EH49 7SFTel: 01506 844 745Email: vince.mcerlane@unity.co.uk

North East & Cumbria

Karen GormanUnity Trust Bank plc. PO Box 98, Whitley Bay,Tyne and Wear NE25 9WQTel: 0191 251 1539Email: karen.gorman@unity.co.uk

Unity has a team of Development Managers around the UK who are focused on looking after our customers needs. Together they have a wealth of experience in relationship banking and are happy to discuss how you can make the most effective use of your banking.

Freephone 0800 783 9650or visit www.unity.co.ukEach area of the UK has its very own designated Unity Trust Bank Development Manager.

Unity is pleased to help a variety of charities and social enterprises throughout the UK not only with their banking needs but also with loans to fund their projects and development. These projects are helping to secure the future of such organisations and therefore the help they offer in their respective communities. Unity commits not only finance but time and energy to charities and voluntary groups. In the course of a year, a number of our Development Managers across the country volunteer an average of 50 hours to advise and support such organisations.

Supported OrganisationsAction StationADSISBarmulloch Community Development CompanyBirmingham Focus on BlindnessBlack Country Living MuseumBlakelaw & North Fenham Parish CouncilBlue Flames Sporting ClubBouncing BackBreakthrough Breast CancerBrumcanCapitaliSECarlisle Sure StartCASS Business SchoolCDFACFDGCitizens Advice Citizens Advice Scotland - CASCleveland Ironstone Mining MuseumComeConCommunity Transport WolverhamptonCosgrove CareCumbria Asset Reinvestment TrustDevelopment Trusts AssociationEast Dunbartonshire Social Economy Network Epilepsy West LothianFaith based regeneration NetworkFootsey ConferenceGlasgow Homelessness Network - GHNHug in a bagIslington Voluntary Action CouncilKillingworth Parent InvolvementLanarkshire Rape Crisis CentreLionheartMake Poverty HistoryMental Health North EastMIND in the Vale of GlamorganNAVCA NACUWNESEPNewcastle United Womens Football ClubNorth East Regional Alcohol ForumNorth Tyneside Voluntary Organisation Development AgencyNorthern Film & MediaNottingham Law CentrePARN

PROP Stress CentrePuppetshipQueen Alexandra CollegeRaiseReal Lives Real ChoicesReality Adventures Works Scotland (RAWS)Regen SchoolSCIO – Staffordshire & Stoke on Trent Consortium of Infrastructure OrganisationsSCVO Credit UnionShow Racism The Red CardSocial Enterprise CoalitionSocial Enterprise NorthumberlandSpruce CarpetsSSEC-SCottish Social Enterprise CoalitionStafford Anglers AssociationStafford Furniture ExchangeStepping Stones For FamiliesSTUCTaizenUnity – The UnionVODAVolunteer Centre North AyrshireWallsend Peoples CentreWelsh Women’s AidWest End Housing Co-opWest Lothian & District Riding For The Disabled AssociationYorkshire Cancer Research

Credit UnionsChester Credit Union Handsworth Breakthrough Credit Union Ltd Kerrier & The Fal Credit Union North Cornwall Credit Union Scottish League of Credit Unions SCVO Credit UnionUnited Stream Credit Union

Councils forVoluntary ServiceBirmingham Voluntary Service CouncilCarlisle CVS Chase CVSChester-le-Street CVSClackmannanshire CVSCVS NetworksDarlington CVSDurham City & District CVSEast Dunbartonshire CVSEast Renfrewshire CVSEdinburgh Voluntary Organisations CouncilGlasgow Council for the Voluntary SectorK&D VoiceMidlothian Voluntary ActionNottingham CVSRichmond CVSSCVOSouth Downs CVSStafford District Voluntary ServicesStewartry CVS

Each year Unity supports a host of charities & organisations across the UK

Unity Trust Bank plc, Registered Head Office, Nine Brindleyplace, Birmingham B1 2HB Telephone: 0845 140 1000 Fax: 0845 11 300 03 www.unity.co.ukRegistered in England and Wales no. 1713126

London & South East

Mark HerbertUnity Trust Bank plc. Congress House,23-28 Great Russell St, London WC1B 3UBTel: 020 7462 5601Email: mark.herbert@unity.co.uk UTBSM07