Partnerships:

Risks and Requirements

Joe Dobson, Fundraiser for Hackney CVS and for City & Hackney Together SPV

Background to City & Hackney Together SPV

•We heard in 2011 that Hackney Council was considering cutting lunch clubs funding

•Worked with Council to look at alternatives

•Based our approach on Special Purpose Vehicle (SPV) in Manchester (GMCVO)

•Secured £50k development money from Council to develop SPV… the overall process took 2 years.

Why a Special Purpose Vehicle [SPV]?• Health and social care increasingly using

contracts but is applicable to other areas

• Securing contracts – this is a bidding and contract holding entity, not an organisation

• Ensuring supply chain diversity is maintained and its vital role recognised

• Hackney CVS now managing £120k luncheon club contracts and supporting 16 clubs to develop and work in partnership

• SPV has secured £270k three year Carers Contract for Hackney with 15 partners

• Hackney CVS has secured £5.86m from Big Lottery Fund using the SPV to provide coordinated services (Connect Hackney) to older people to prevent social isolation with 38 VCS and public sector partners

• SPV is leading £1.25 million bid to CCG (One Hackney) to reduce hospital admissions and improve discharge rates

Where are we now?

ESF partnerships – risks andrequirements

• What do you think the Lottery/DWP/SFA expects to see from a lead and partners? [see BLF guide]

As a small group based in one borough that wishes to be a partner and not a lead, what do you need to look for in a lead organisation in addition to that listed in the BLF guidance?

Do you want a delivery based organisation or an SPV type lead body? If you are based in only one borough, how will you fit in to a bid that

covers 8 boroughs e.g. Wandsworth, Lambeth, Southwark, Lewisham, City of London, Islington, Camden, Westminster, Kensington & Chelsea?

Conflict of interest – what is the lead seeking to deliver directly itself? Is it only “crumbs” for partners? Are there too many partners for each to receive a reasonable amount of funds to be effective? How much of funding will lead take to manage the project?

ESF partnerships – risks andRequirements (cont.)

A theoretical example of an ESF specification:• Total budget for specification X for a sub region (around 8 boroughs) is

worth £750,000 over 3 years• Annual budget = £250,000• Lead partner takes £35,000p/a to manage the contract = £215,000 p/a

budget• The project covers 8 boroughs = £26,875 available p/a per boroughQs arising from the above example for potential localised partners:• Will you be the sole delivery partner in your borough?• Will the budget allocated to you be sufficient?• What does the partnership agreement you have say about payment schedules

and support in the case of under-performance?• Don’t sign any partnership agreement unless it is explicit and clear about what

you will be delivering, your budget and payment arrangements.

Hackney CVS website:www.hcvs.org.uk

Link to City & Hackney together information:http://www.hcvs.org.uk/index.php?category=14&sec=68&page=214

joe@hcvs.org.uk