Ho

sted

by:

Fu

nd

ed b

y:

COMMUNITY FOUNDATIONS AND ASSET BASED

DEVELOPMENT: MODELS FROM EUROPE AND BEYOND

Angus McCabeThird Sector Research Centre; University Of

BirminghamCSRDG: Tbilisi 5th April 2013

THIS SESSION WILL……

• Explore:Different Community Trust models from across Europe:

Community Foundations, Land Trusts, Development Trusts, Transition Towns…….

What asset based community development does?Why asset based models of community economic

development? Funding: what’s different?Benefits, opportunities and challengesWhat does this mean in Georgia, Armenia and Azerbaijan?

WHAT ARE WE TALKING ABOUT?

• An asset based approach to community/economic development including:Community FoundationsDevelopment Trusts (DTs)Community Land Trusts (CLTs)Community Development Finance (CDFI)Other models: Transition Towns/cashless

economies etc.

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 private ownership

C19th movement; land trusts to house industrial workers (model villages – Cadbury family in Birmingham/Joseph Rowntree in York) and Common’s Preservation Societies (parks and woodlands)

US origins in 1960’s and Institute of Community Economics

COMMUNITY FOUNDATIONS : MISSION AND MODELS

• Mainly US and EU model (European Foundation Centre established 1989: 23 in Germany, 5 in Turkey, 4 in Russia, 3 Ukraine)

• UK/European model differs from US – greater reliance on Foundations created by individuals (Bill Gates)

Vary in: income (few thousand £/$) to multi-million investment/endowment

portfolios scope/scale (some with paid staff – others – volunteer

origins/continued reliance on volunteers) population coverage across Europe: from (rural) – few thousand

population Birmingham/Black Country – 2.25 million

COMMUNITY FOUNDATIONS;MISSION

Mission: Co-ordination of funding/resources for maximum community benefit

Combining corporate giving, philanthropy, individual giving and ‘through funding’ (eg EU/Government and aid funds)

Developing ‘matched funding’ models to enhance effectiveness (UK Challenge model)

Attract international corporation sponsorship (usually only in counties/areas where corporations are operating (www.alcoa.com) - Hungary

‘100 Clubs’

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 ‘the

established’ Long term relationships between donors, Foundations and

beneficiaries – a developmental relationship – not fund and monitor INITIAL EVIDENCE: surviving the economic climate better than

‘traditional’ funders (despite decline in corporate and individual/philanthropic giving and corporate sponsorship

COMMUNITY FOUNDATIONS EXAMPLES: 1

• UK – Birmingham and the Black Country Community Foundation: disability, access to education and training, environment, family support - in 2010-11 grants of £1.8 million to 511 groups

• Poland – 32 Foundations with combined assets of $508 million (network founded 1998)

• Priorities development of local communities youth involvement senior citizens corporate community involvement social enterprise

COMMUNITY FOUNDATIONS:EXAMPLES: 2

• Romania – 2 Foundations: Cluj & Oderheiu Community Foundations: Example -Youth Bank- youth engagement, education and cultural activities (15,000 ROM); mainly volunteer based

• Ukraine – collective assets of around $500,000: focus on people trafficking, rural-urban migration, cancer, media reform

• Hungary: well developed – but some very small/volunteer based groups (Ferencvaros Community Foundation – 2009 – start up phase to 2011 – income 32,000 euros)

• Networked model: Poland – Slovakia (Association of Slovak Community Foundations)

USEFUL WEBSITES

• Charles Stuart Mott Foundation: www.mott.org• Alliance Organisation (Eastern Europe)

www.alliancemagazine.org (but subscription only)• European Foundation Centre: www.efc.be • Global Fund for Community Foundations:

www.globalfundcommunityfoundations.org • Community Foundations Network: http://

ukcommunityfoundations.org • NOTE- quality and currency of information on

Community Foundations variable (assets/activity etc)

COMMUNITY LAND AND DEVELOPMENT TRUSTS

• Promote community ownership of local assets; initiatives range from;Affordable housing schemesManaged workspace and employment trainingGreen energy programmes (from power generation, to

recycling) Land management (forestry) and food productionVillage shops/the ‘pub is the hub’ (Culture House model in

Eastern Europe?)Or…own your local football club!!!

WHY ASSET BASED COMMUNITY DEVELOPMENT 1

• Principles: Community Foundations, Community Land/Development Trusts;Are locally driven, controlled and accountableMeet local needs (flexible and responsive)Address economic, social and environmental

issues (social benefit)Involve partnership solutions across sectorsAre sustainable (beyond grants/aid/policy

changes) – ‘in perpetuity’

WHY ASSET BASED COMMUNITY DEVELOPMENT 2

• Practical:

Cuts to international aid – ending of a ‘grant’ cultureCuts in the EU to government support for NGO’s and

community servicesWorking ‘beyond the state and the market’Reaction to globalisation – and/or World Bank interest in

asset based community development (Africa)Reaction to privatisation of local economies and services

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 in

England and Wales

OTHER MODELS

• Transition Towns: promote local economic activity (non-corporate) in terms of food production, ‘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 up alternative economic systems

DEVELOPMENT TRUSTS

COMMUNITY LAND TRUSTS

FINANCE MODELS

Community Foundations/Asset Based Development requires a different financial/business model:

Start up/feasibility grants/money – yes but; Loans (commercial or Community Development Finance

Initiatives) as well as grants Asset transfer (no/low/commercial) cost Community shares Endowments Remittances (£23billion UK – payments back to country of origin – £123

billion Russia/US to Georgia) Community bonds Cross-subsidy Crowd funding

EXAMPLES

OPPORTUNITIES AND CHALLENGES

• Beyond ‘policy change and aid’• Sustainable community ownership• Finance – within the community – not ‘flowing

out’ of communities• But• Access to start up and working capital (poor

communities)• Skills required• Sustaining commitment

WHAT DOES THIS MEAN…..?

• Some key questions:What are the opportunities for these approaches

in your context?What might the challenges and barriers be?What might help/facilitate the development of

these approaches in your contextWhat is it feasible/possible to achieve?Other questions……?

COMMUNITY LAND TRUST VIDEOS

• http://www.communitylandtrusts.org.uk/See-it-and-Believe-it/CLT_Films

• http://www.communitylandtrusts.org.uk/See-it-and-Believe-it/rural-case-studies/Lyvennet_Community_Trust

• http://www.communitylandtrusts.org.uk/See-it-and-Believe-it/rural-case-studies/high-bickington

FURTHER INFORMATION

• www.tsrc.ac.uk • www.communitylandtrusts.org.uk• www.dtascot.org.uk • www.locality.org.uk• www.efc.be • http://www.transitionnetwork.org • Or contact• a.j.mccabe@bham.ac.uk

AND FINALLY….

• Thanks to the Community Development Journal for supporting this event.

• For access to free Community Development Journal papers, reports, events and resources visit http://www.oxfordjournals.org/cdjc

• For access to free Third Sector Research Centre resources visit http://www.tsrc.ac.uk/Research/KnowledgePortal/tabid/840/Default.aspx