How to make your application stand out
Community Business Fund Round 8
guidelines for applicants
You can get in touch with our grant administration
partner, UMi, at any point during your application
process for free advice and guidance.
Call UMi's helpline on
0300 1240444
Email UMi:
The helpline is open Monday to Friday
from 9am until 5pm (4.30pm on Friday).
Calls are charged at the national call rate.
We aim to respond to email enquiries within
one working day.
Part one
Can you apply?
Part two
Application process
Part three
The application form
Part four
3 Welcome
4 Can you apply?
8 What can you apply for?
16 How to apply
17 The process
18 Impact information
47 FAQs
22 Proposal overview
26 Organisation details
29 Financial information
34 Locally rooted
37 Accountable to the community
39 Trading for community benefit
44 Broad community impact
About this guidance
This guidance will help you decide whether the
Power to Change Community Business Fund is
right for you. It includes information about the
types of projects that the fund is designed to
support, as well as the criteria that will be used to
assess applications. The guidance also provides
information that will help you complete the
application form.
Part one: Explores the fund criteria and will help
you assess whether the Community Business Fund
is right for you
Part two: Provides information about how to apply
and the application process
Part three: Oers detailed notes that will help you
complete your application
Part four: Aims to answer any other questions
that you have about Power to Change and the
application process.
If you require this guidance to be
sent to you in large print, braille or an
audio transcript, please get in touch
by email [email protected]
Contents
Get in touch
Webchat
During helpline opening hours you can also
use webchat to get help with your application.
Visit https://www.powertochange.org.uk/get-
support/programmes/community-business-fund/
and open a chat box.
Power to Change is the independent trust that
supports community businesses in England.
Since 2015, we have awarded £26 million to 147
community businesses through the Community
Business Fund. This has helped all sorts of
community businesses including community
libraries, bakeries, pubs, farms, hubs, transport,
energy schemes, art centres and construction
organisations, among many others to become
more sustainable.
This year, we aim to help many more inspiring,
locally-based and community-led businesses.
We are aiming to invest £3 million to around 17
community businesses in this round and we'll have
further rounds in 2020. We've specifically changed
our wording to refer to the funding we oer
through this programme as 'investments' rather
than 'grants'. This is because, although all the
oers made will be non-repayable, we consider
the funding we put into community businesses as
an investment into the people, places and ideas
you share with us.
Competition for this funding is very high, so we've
developed this guidance to support you to make
the strongest application possible.
We and our partners are committed to oering all
applicants - regardless of whether we go on to
invest in you - a service which gives you useful
feedback and pointers on how to best present
your proposals to us for funding. We welcome your
feedback on your experience of applying to the
Community Business Fund via our partners, UMi
so we can continuously improve our approach.
Please read through this guidance and if after
doing so, you believe your organisation fits our
criteria, then we would welcome an application
from you.
Part One | Can you apply?
Welcome
Kate Stewart
Director of Programmes
Power to Change
Are you an existing community business in England? Looking for funding
and support to make your business more sustainable? Our Community
Business Fund oers investments between £50,000 and £300,000 to help
you significantly improve your viability, as well as social, environmental and
economic impact.
You can find more examples of organisations we
have funded on our website:
www.powertochange.org.uk
Having a strong business
model is key to your
application, and discussing
your potential bid with others,
including the Power to Change
team, will help develop your
idea.
Emelye Westwood, Ideal for All
a Power to Change grantee
What do we fund?
3
To be considered for funding through
the Community Business Fund your
project and organisation must be
based in England, and will need to
clearly evidence how you meet each of
our 12 criteria below:
1. Power to Change only funds community
businesses
Community businesses are run by local people
for local people. They can revive local assets,
protect the services people rely on, and address
local needs. There are many types of community
business. What they all have in common is that
they are inclusive and give decision making power
to local people and that the profits they generate
flow back into the community to deliver positive
local impact.
Most of the applications that we reject fail to
evidence in their application form how they meet
the four key features of a community business
set out on this page, particularly how they are
accountable to the local community. Before
applying, please think carefully about whether
you can demonstrate strong evidence for these
four community business features.
Part One | Can you apply?
Application criteria
The four key features of a community business
Locally rooted
They are rooted in a
particular geographical
place. They build
on the strengths and
assets of that place to
address community
needs.
Accountable to
local community
This can be
demonstrated in many
ways (e.g. membership
structure, ownership,
broad range of local
trustees) but you must
have evidence of regular
community input into
decision making.
Trading for the
benefit of the
local community
They have a clear
trading model and sell
services and products
in and around their
local area*. The way
the business is run and
the profits it makes are
used to deliver local
benefit.
Broad
community
impact
They engage with a
variety of dierent
groups in their
community and deliver
impact against a range
of dierent community
needs.
Watch an example of what we've funded
In the videos above we ask some of our grantees to
explain in their own words how their business meets
the four traits of a community business.
Watch video
Ronnie talks about how
Granby Four Streets
is responding to local
needs.
Watch video
Dave and Sangita from
Sheeld Live! talk about
how local people make
decisions about the
business.
Watch video
Clare talks about how the
Burton Street Foundation
generates income which
is reinvested for social
benefit.
Watch video
John from Homebaked
talks about the dierence
the bakery is making in
their local community.
* From time to time we may choose to fund organi-
sations which are not yet trading at our discretion,
if strong if strong projections and evidence of
market research are provided.
4
5
2. Growth and viability
We will not fund 'business as usual'. Your
application must demonstrate how the funding will
help you to increase your trading income, secure
an asset or significantly reduce your costs. If your
organisation currently has no trading history, we will
require robust evidence to demonstrate that your
trading income forecasts are realistic and based on
viable market research.
3. Be incorporated
The Community Business Fund will only fund
incorporated organisations. This means that
your organisation is recognised as a legal
entity in its own right, rather than as a collection
of individuals. Examples of incorporated
organisations include:
⊲ Charitable Incorporated Organisation
⊲ Community Benefit Society
⊲ Community Interest Company Limited by
Guarantee
⊲ Community Interest Company Limited by Shares
⊲ Company Limited by Guarantee
⊲ Company Limited by Shares
⊲ Co-operative Society.
Examples of unincorporated organisations, which
we won’t fund, include: charitable trusts and
unincorporated associations.
Part One | Can you apply?
Application criteria (cont.)
Have you previously received a
Community Business Fund or
Initial Grants Programme
investment?
We will consider applications from organisations
which have previously received a Community
Business Fund or Initial Grants Programme
investment, but only in exceptional
circumstances. These circumstances include
where an organisation is in one of Power to
Change's places of interest. A list of these
places can be found on page 11. In addition, we
may also consider applications from
organisations which are not located in one of
these places if the previous Community
Business Fund or Initial Grants Programme
funded project has been completed, with all
final reporting provided, and the project
resulted in a significant increase in trading
income or reduction in costs.
There are nearly 8,000 community businesses
in England, of which less than 2% have received
a Community Business Fund or Initial Grants
Programme grant to date. By focusing on
organisations which haven't previously received
one of these investments, we hope to support
even more community businesses beyond the
147 already invested in under the Community
Business Fund.
4. Charitable purpose
You must have a charitable purpose at the heart
of what you are asking us to fund, which meets
charitable needs in your community. This does not
mean that you have to be a charity as we will fund
a variety of legal structures, but we cannot fund
activities which don’t further a charitable purpose.
We cannot accept proposals that promote the
advancement of religion or that are party political
in nature. This does not prevent faith groups from
applying for funding for activities which have a
charitablepurpose other than the advancement of
religion.
5. Public benefit
For a proposal to be charitable, it needs to have
both a charitable purpose and to be for public
benefit. This means that your proposal must
create benefits for a sucient section of your
community, including people who are experiencing
disadvantage. If your activities will only benefit a
few people in your community or will only provide
benefits to people who aren't experiencing
disadvantage, we may not be able to invest in your
organisation.
6. Share our impact goals
You must be able to demonstrate at least one
of the seven core impact areas below. If your
application is successful, you will be asked to
report against the impact area(s) you selected.
1. Reduce social isolation
2. Improve health and wellbeing
3. Increase employability
4. Create better access to basic services
5. Improve local environment
6. Enable greater community cohesion
7. Foster greater community pride and
empowerment
7. Accounts
Your organisation should have at least one year of
financial accounts; this could be your management
accounts or your annual accounts.
Alternatively, if your organisation is a subsidiary
of an established organisation, you can provide
the financial accounts of the parent organisation;
or if you are applying as part of a consortium, the
consortium lead will provide their accounts.
Part One | Can you apply?
Application criteria (cont.)
6
More info
WHAT DO WE MEAN BY PRIVATE BENEFIT?
Any personal benefits people receive through
the community business must be no more than
a necessary result or by-product of delivering
public benefit.
Personal benefits could include financial
payments to the owners of a property that an
organisation uses or membership benefits.
These private benefits need to be incidental
in both nature and amount. Returns from
community shares are allowable. Find out more:
www.gov.uk/government/publications/
examples-of-personal-benefit/examples-of-
personal-benefit
WHAT DO WE MEAN BY CHARITABLE
PURPOSE?
You can find more information about charitable
purpose on the Charity Commission website
www.gov.uk/government/publications/
charitable-purposes/charitable-purposes
8. Other funding sources
Power to Change will not fund the full costs of your
project. You should have other sources of funding
either confirmed or close to confirmation. This is
covered in Part Three – Financial Information of
the application form.
9. State Aid
State Aid relates to certain EU regulations around
competition, which Power to Change must abide
by. Unlawful State Aid will have to be repaid. Our
application process will help us identify the State
Aid position of your application. We recommend
that you take independent advice on this matter.
10. Readiness
You must be ready to start work within six months
of being oered a Community Business Fund
investment. Your project can last up to a maximum
of two years in total, but we expect most of the
investments we make to be spent within one year.
11. Capital and revenue request limits
You can request up to 75% of revenue costs and
building-related capital costs, and up to 100% of
non-building related capital costs. Please carefully
read the details on the next page to find out what
capital and revenue cost you can apply for.
Part One | Can you apply?
Application criteria (cont.)
12. Funding available
Our analysis
1
has identified that there is a gap in
the market for funding for community business
between £50,000 and £300,000
2
. The Community
Business Fund will not accept applications outside
this range.
1. C. Percy, A. Swersky, D. Hull and J. Medley-Hallam: The community
business market 2015, Research Institute Report No. 1, Power to
Change.
2 Power to Change reserves the right to exceed these grant limits (set
out in criteria 11 and 12) during the assessment process for exceptional
applications.
More info
WHY WOULD STATE AID AFFECT MY
APPLICATION?
Power to Change grants qualify within the
European Union definition of State Aid. State
Aid refers to forms of assistance given on a
discretionary basis to provide an activity or
service, which may distort competition in the
European Union market by favouring one
provider over another.
State Aid rules are complex, but as a general
guide applications involving trading activities
are unlikely to breach State Aid rules if they are:
small scale; delivered in a defined local area;
are for charitable, social, cultural or educational
purposes, and do not aect trade between
member states of the European Union.
We recommend you take independent advice
on this matter.
Find out more about State Aid.
www.gov.uk/guidance/state-aid/guidance
7
More info
WHAT ARE CAPITAL AND REVENUE COSTS?
Capital costs are costs to set up a commercially
operational business. This might include the
purchase of land, buildings, construction, and
equipment used in the production of goods or
in the provision of services.
Revenue costs are costs associated with
paying people for their services. For example,
architect fees or employee salaries. Make sure
you have considered who will be managing
the project build and how you will cover any
associated cost.
Capital and revenue request limits
Power to Change will fund up to 75% of
revenue costs, up to 75% of building-related
capital costs and 100% of other capital costs.
⊲ An example of building-related capital
costs include purchasing, expanding or
refurbishing a building.
⊲ An example of other capital costs include
purchasing vehicles or buying professional
catering equipment.
Stronger applications tend to show how they
can cover a larger proportion of these costs
from income or other funding sources, making
them less reliant on our funding.
The Community Business Fund will
invest in:
⊲ Capital costs including building, vehicles,
equipment of significant value, refurbishment
costs. Minor refurbishment works, new
equipment and the purchase of vehicles can
all form part of your application and will be
considered against the standard guidance and
criteria set out here.
Applications that involve building work, renovations
or taking on the ownership of a new asset are
subject to our additional ‘Assets and Buildings
project Criteria’ on page 13. If you are applying for
funding to support capital building or refurbishment
works, you should read this guidance carefully and
work through the capital projects checklist when
preparing your application.
⊲ Proposal-specific revenue costs like sta
costs, professional fees, volunteer costs. We
are unlikely to fund applications which are
asking only to cover the cost of sta salaries
unless you are able to clearly demonstrate how
this will help your trading income and social,
economic and environmental impact and how
you will continue to fund these salary costs
after the end of the funding period.
Funding from the Community Business Fund
cannot be used:
⊲ To reimburse money already spent. We will not
provide retrospective funding.
⊲ To pay for costs which someone else is paying
for, whether in cash or in kind.
⊲ Existing day-to-day running costs.
If you are successful in getting through to the full
assessment stage we may ask you to revise your
proposal as we learn more about your business.
We may oer you only part of the funding initially
requested or oer to provide other types of
support instead of the full amount requested.
Before considering any of these steps we will
talk to you about the reasons why this might be
appropriate and how it would aect your proposal.
Part One | Can you apply?
What you can apply for
8
Diversity and Inclusion
Part One | Can you apply?
Tips on how much funding to request
Large requests from small organisations
The amount you are requesting should be
proportional to your organisation's level of financial
experience to date. If your organisation has a small
turnover (for example, income of less than £15,000)
and you are requesting a large amount (for
example, over £200,000), please provide evidence
of your organisation's financial management skills
for managing a large grant.
How much you request and sustainability
The amount of funding you are requesting should
be proportional to your expected increase in
trading income.
We will not oer a large investment (for example,
over £200,000) that will only lead to a small
increase in trading income (for example, a £5,000
increase) by the end of the funding period.
Should I include VAT in my application?
Whether you should include VAT in the costs in
your application form depends on if you are VAT
registered. Our assessment process will help us
identify the VAT position of your application. VAT
rules are complex, so we recommend that you
obtain specialist independent VAT advice.
As general guidance on what Power to Change
can fund relating to VAT costs:
⊲ If you are VAT registered, please exclude
VAT on items in your costs for which you can
reclaim the VAT back from HMRC.
⊲ If you are not VAT registered and so cannot
reclaim VAT back from HRMC, please include
VAT for relevant items in your costs.
⊲ If your VAT position changes during the
application process, you must let us know
immediately so the appropriate VAT costs can
be included in your application.
Power to Change is committed to the
advancement of equality, diversity and inclusion.
It seeks to be a genuinely inclusive organisation
by advancing equality and diversity through its
policies and practices.
We encourage and welcome applications from
community businesses from all backgrounds, who
meet our requirements, and who are looking to
make a real dierence to the lives of their local
communities.
Shortly after the submission of your application,
we will send you our equality and diversity survey.
This is not obligatory to fill out, but if you do, it
helps us make sure our funding supports a wide
group of people.
We expect applicants to the Community Business
Fund to have an equality and diversity policy in
place and to have considered disability inclusion.
You can find out more about it in our disability
inclusion guide.
Please let us know by email
[email protected] if you need this guidance
in large print, braille or audio recording.
9
As well as demonstrating you meet the
12 criteria, here are a few tips on what
you need to clearly evidence according
to your sector.
Arts centre or facility
Consider how your organisation is accountable to
the community and engages local people in having
a genuine say in how your organisation is run.
Read about Viva Arts.
Community hub, facility or space
We receive a lot of applications for community
hubs – only the strongest will be funded. Consider
how your community hub is delivering beneficial
impact to a range of people within your
community, including those experiencing
disadvantage. Read about the dierence
Highfields Community Centre is making in
Leicester.
Community pub
If you are applying for funding for your community
pub, consider how you are engaging with people
experiencing disadvantage in your community and
how they will benefit from your proposal. Read
about The Bevendean in Brighton.
Note: We can only fund existing pubs – we have a
dierent programme, More than a Pub, for
communities that are just starting on their journey
to save their community pub.
Part One | Can you apply?
Tips for specific sectors
Community shop
Consider how your organisation is accountable to
the community and engages local people in having
a genuine say in how your organisation is run.
Consider how your community shop is delivering
beneficial impact to a range of people within your
community, including those experiencing
disadvantage. Find out how Crediton Community
Bookshop are doing so.
Community cafe
We receive a lot of applications for community
cafes and only the strongest will be funded. It can
be challenging to make a financially viable trading
model from a café. Consider how your community
cafe is delivering beneficial impact to a range of
people within your community, including those
experiencing disadvantage. Read about
Community Catering Initiative in Newcastle.
Community media
If your organisation has a city-wide reach, you
need to explain how your organisation is rooted in,
accountable to and benefiting a smaller
geographical community. Watch how Sheeld
Live! are doing it.
How likely am I to get funding?
Round size
During each application window, we receive
approximately 250 applications. Of these, only
the strongest will progress to the assessment
stage. In the last round, 32 applications were
progressed to be considered for funding from
the £3 million we had available to spend. This
round we have £3million available to spend
and are expecting to progress around 27
applications, of which about 17 will receive
funding. This means that even if your proposal
meets all the eligibility criteria, it may not be
progressed to assessment. How likely you are
to get funding also depends on where your
organisation is located (see page 11).
We recommend that you read through the
case studies of organisations which have
been funded by Power to Change. These case
studies describe how community businesses
working in dierent sectors meet Power to
Change’s four community business criteria,
and provide an insight into the strongest
applications which have been invested in
through the Community Business Fund or its
precursor, the Initial Grants Programme.
You can also look at our Community Business
Map to see a full list of all organisations funded
through Power to Change.
10
Part One | Can you apply?
Tips for specific sectors
Employment, training, business support or
education
You will need to demonstrate that your services
are targeting those experiencing disadvantage
and are reaching a suciently large section of the
public for Power to Change to be able to make a
charitable award to your organisation. Read about
The Florrie.
Energy
Through the Community Business Fund (and its
precursor fund, the Initial Grants Programme),
Power to Change has so far only invested in
energy eciency measures for community
buildings owned by the applicant organisation with
the aim of improving financial viablity – see
Stocksbridge 4SLC case study. If you are looking
for funding for a community energy project, you
may wish to consider our Community Shares
Booster programme or the Next Generation Fund.
Environmental and/or nature conservation
In addition to benefitting the environment,
consider how your proposal will also benefit the
people living in your local community, particularly
those experiencing disadvantage. Find out more
about how Amble Development Trust is hatching
lobsters to sustain heritage and trade in
Northumberland.
Food catering or production (including farming)
Consider how you are accountable to your local
community and engaging with disadvantaged
people to bring about beneficial impact. Read
about Greenslate Community Farm in Wigan.
Health, care and wellbeing
Consider how your proposal is responding to the
changing health and social care landscape, and
how you are developing a trading model which will
lead to future financial sustainability. Read how
New Wortley Community Centre in Leeds is doing
so.
Consider how your health and social care
organisation is delivering beneficial impact to
a range of people within your community, not
just specific groups, and how the community is
involved with the design of services. If contracts
require you to trade over a large area, you will
need to demonstrate how your trading activity
brings benefits back to your immediate local
community e.g. through how surpluses are
reinvested.
Place-based funding
The Community Business Fund welcomes
strong applications from across England.
However, we are particularly interested in
applications from the following areas, especially
if they involve community businesses working
together:
⊲ Bradford
⊲ Grimsby
⊲ Hartlepool
⊲ Leicester
⊲ Plymouth
⊲ Wigan
⊲ Liverpool City Region
⊲ Suolk
⊲ West of England Combined Authority
Through Round 8 we expect to invest
approximately £1m to applications from the
areas above. This means that for Round 8 we
are expecting to fund 5 applications from the
areas above. For organisations not based
in these areas, we are expecting to invest
approximately £2 million in total to about 12
organisations in Round 8. Find out more about
our focus on places in the Community Business
Fund FAQs on our website.
11
Income or financial inclusion
We have not yet invested in any organisations
which particularly focus on income or financial
inclusion. If your organisation has a city-wide
reach, you need to explain how your organisation
is rooted in, accountable to and benefiting a
smaller geographical community.
Libraries
Consider what your trading model is and how your
organisation will be financially sustainable in the
long term. We cannot fund ongoing salary costs for
which there is no clear plan of how these salary
costs will be paid for when the funding period ends.
Read about Kensal Rise Library's trading model.
Sport and leisure
We won't fund the upgrade of facilities at or
expansion of sports clubs if they only benefit
the paying members of the club. Sports based
proposals must show how they deliver broader
community benefit to local people, including
access to other community groups/projects and
ideally the general public.
Sports proposals that we fund should also benefit
the community in other ways, for example by
oering training or employment opportunities to
disadvantaged groups, or supporting vulnerable
young people. Read about East Lancashire Football
Development Association in Lancashire's project.
Part One | Can you apply?
Tips for specific sectors
Transport
Consider how your proposal is engaging with a broad
range of people in your community, particularly those
experiencing disadvantage, and is open and accessible
to all in your community. If your transport organisation
operates over a wide geographical area, you will
need to demonstrate how your trading activity brings
benefits back to your immediate local community e.g.
through how surpluses are reinvested.
Did you know?
Applicants mostly struggle to demonstrate
how their community business is accountable
to local people. By this, we mean local people
must have shaped your proposal, but also have
an ongoing say in how the business develops.
Find out more in Section E of the application
form and read '12 questions to explore
community accountability'.
Housing
If you are looking for funding to support feasibility
and pre-development work, you may wish to
consider our Homes in Community Hands fund.
If you are applying to the Community Business
Fund, you should already have other sources of
funding in place. You must be ready to start
building new homes or refurbishing existing homes
within 6 months of being oered a grant.
By the end of the funding period, your housing
proposal must be completed and your organisation
must be more financially viable, e.g. through
increased trading income. Your proposal must
benefit the broader community e.g. through the
provision of aordable housing or financial
investment in your community. Read about Granby
Four Streets.
12
Community ownership of buildings
and spaces is a key part of Power to
Change’s vision for the community
business sector. Ownership can
help to generate extra income and
can give communities control over
the things that matter most in their
neighbourhood.
We have supported many community businesses
to successfully take on buildings and land, or
to improve the spaces they manage. However,
taking on a capital works can be challenging. It
brings risks both because of the costs involved,
and because of the complexity of building works.
The additional criteria and requirements below
should help you think through these risks, and help
develop a strong set of plans for the proposal.
This section summarises the additional criteria
that will be applied to applications involving a
space. There is also a checklist of supporting
documents that you will need in order to progress
an application to stage 2. Your assessor will need
to see copies of the plans and documents listed
below to make a recommendation for investment.
1. Ownership of the Building
You will need to own the building, have a lease
in place, or be taking on ownership/a lease. If
you are/will be taking a lease on the building it
Part One | Can you apply?
Buying buildings and spaces
will need to be a long lease in proportion to the
amount of funding you are requesting. For the
largest investments, this would need to be 25
years or more (with no break clause during this
time).
You will need to have proof of ownership or a
suitable lease (either land registry documents or
a signed copy of the lease) before funds can be
drawn down. If you do not already have these in
place at the time of applying, you will be asked
to provide draft agreements and proof that the
current owner is willing to sell or enter the lease as
part of the assessment process.
If you are asking us for funds to help complete the
purchase of a building you will need to have heads
of terms of the lease agreed.
Plans not at this stage yet?
You may be at a much earlier stage of planning
your project. For example, you may not yet
have completed a feasibility study, or been able
to obtain a valuation for a building that you are
planning to take on. If so, please don’t apply to
the Community Business Fund. You won’t be
successful.
Power to Change’s other programmes may be
better able to help you. The Bright Ideas Fund
provides business development support and
awards of up to £15,000 to help to community
groups and organisations who have an idea
for a new community business. We also have
programmes that specifically support the
early stages of community housing projects,
community pubs or support for a Community
Share Oer. See page 20 for more detail.
You might also find this information available
from Locality useful, especially the To Have and
To Hold guide at the end of the page which
covers asset projects in some detail.
13
Asset locks
As a charitable trust Power to Change must
ensure that assets bought or developed with
our funds are used for public benefit and
charitable purposes. We also want to ensure
that assets stay in community ownership in the
long term. You will need to have an asset lock
in your governing documents to make sure
the building will stay in community hands. For
certain types of organisation we may apply
additional conditions on the grant to ensure
that the asset is protected.
Power to Change does not take a charge on
buildings that we fund, except in exceptional
circumstances. We do require, however, that
organisations get our permission before
taking out a charge that aects a building
we have funded. For example, if you needed
to take out a commercial mortgage to fund the
next stage of development work you would
need to get our permission before doing so.
Many of the community businesses we support
include a mixture of grant, loan and other
funding. If you intend to take out a loan as part
of the proposal please include details of this in
your application. We can then make sure that
we include permission to take out such finance
at the same time as oering our investment.
Part One | Can you apply?
Assets and buildings
2. Understanding the Costs and Risks involved
You will need an up-to-date (less than six months
old) independent valuation of the building,
structural survey and a feasibility study that
considers the costs and risks of the building plans
alongside alternative options.
You will need an up-to-date breakdown of the
costs involved in the proposed works produced
by a suitably qualified professional. We expect
these costs to include contingency for cost over-
run. The appropriate level of contingency will vary,
but we expect contingency costs to be budgeted
in the region of 10-15% of total project costs. Your
business plan should include the additional costs
involved in running and maintaining the building,
and take into account the possibility of delays to
the works.
3. Planning Permissions and Consents
You will need to have planning permission in place,
along with any necessary statutory consents,
before funds can be drawn down.
You must be in a position to draw down funds
within six months of accepting an oer from us.
You will need to evidence that such permissions
and consents are likely (and that you have been
engaging with the appropriate planning and
statutory departments) during your assessment.
You will need to ensure that any specialist surveys
or requirements due to the heritage status of your
proposal, or due to environmental factors, are met.
You should seek advice from suitably qualified
professionals.
4. Diversity and inclusion
You must be satisfied that you can meet your
obligations under the relevant legislation, for
example the Equality Act 2010.
We expect there to be disability access if we are
funding building-related capital costs and you will
need to prepare an access statement as part of
your planning for the development. Have a look at
our disability inclusion guide for more information.
You may wish to include revenue costs for advice
from an accredited access consultant if you are
planning a large building project. You can find an
accredited consultant on www.nrac.org.uk
5. Environmental and Other Responsibilities
Consideration will be given to the environmental
impact of the project and we may favour projects
that provide greater community benefit because
14
Part One | Can you apply?
Assets and buildings
of the environmental measures involved. Practical
support and advice is available through the Fit for
The Future Network.
You should also ensure that you are meeting your
duties under Health and Safety legislation during
the capital works and that you have suitable
insurance in place to cover your responsibilities to
sta, visitors and the public.
6. Project Management Resource and Expertise
One of the things that assessors will consider
is whether your organisation has access to the
experience and the resource that you will need to
successfully complete the works. You’ll need to
have clear project management arrangements in
place and, where you are using external experts,
you will need copies of the briefs for the work to
be commissioned.
You will need to evidence that you have sought
appropriate experience on planning and
building controls, and VAT. We also look for clear
arrangements for the oversight of the works.
You can include revenue costs to support project
management as part of your application (for
example part of the salary costs for a project
manager).
You might find this practical guide on working with
consultants useful.
What you will need to provide
if you reach assessment
⊲ A copy of the land registry documents
confirming you own the building or a signed
long lease of at least 25 years (shorter leases
will be considered for smaller grant values of
no more than £200,000) or heads of terms and
agreement from the current owner that they
intend to agree a suitable sale or lease.
⊲ An independent valuation of the building (less
than six months old unless you have owned or
leased the building for longer than that time)
⊲ A survey of the condition of the building (less
than six months old)
⊲ Details of the costs involved in the planned
work produced by a suitably qualified
professional (less than six months old)
⊲ Confirmation that you have planning permission
for the planned works and copies of the
relevant documents (or confirmation that
permission will be in place within six months of
being oered a grant)
⊲ Confirmation that you have considered the
legal obligations related to the works. A copy of
the access statement for the building works.
15
Part Two | Application Process
How to apply
How to apply
To apply for a Community Business Fund grant you
will need to complete a single online application
form. We will be in touch within six weeks to let
you know if you are moving on to the detailed
assessment stage.
Once the fund opens for applications on 11
September 2019 you can register and start
the application process here: https://www.
powertochange.org.uk/get-support/programmes/
community-business-fund/
The fund closes on 9 October 2019 at 12 noon.
If you start your online application, but are unable
to complete all the required information, don’t
worry. You can simply save your form and come
back to it at a later date.
To access your form again, use the link we emailed
to you when you first started it. You can then log
in using your email address and the password you
created.
If you forget your password, you can create a new
one by clicking on “Forgotten your password?” and
following the instructions.
Before you begin
You should have done some initial planning, and
be able to demonstrate how the proposal will make
your community business grow or become more
sustainable.
We strongly recommend that you read
through Part three: The application form in
this document before starting your application.
This will help to make sure you have the right
information available and help you answer
the questions.
You should make sure you have the evidence you
need to make a strong case for funding. If you are
still at an early, exploratory stage with the proposal
it may be better to apply to our Bright Ideas Fund,
or wait for a later funding round.
While unsuccessful applicants can apply again
in future rounds we will reject re-applications that
are the same or barely changed.
We will only accept one application per
organisation per funding window. If you submit
more than one application, we reserve the right
to ask you to resubmit your preferred
application in a future funding window.
What happens if my application is
unsuccessful?
During each application window we receive
approximately 250 applications and can only
progress around 1 in every 8 applications. Only the
strongest applications will be progressed.
If your application is unsuccessful, we will send
you an email which briefly sets out which eligibility
criteria your application did not provide evidence
of meeting and/or the areas of your application
which were less strong compared with other
applications. The feedback is bespoke and tailored
to each individual application. It highlights the
section of the application which would need to be
developed further to be considered for funding
from the Community Business Fund. Unfortunately,
due to the numbers of applications we receive, we
are not able to provide more detailed feedback.
If an application of strategic importance to Power
to Change (e.g. located in one of the places
listed on pg 11) shows potential but has specific
issues to be addressed before it could progress
to assessment, we may oer you development
support. If this support is successfully completed,
your application could progress to assessment
without the need to submit a new application.
However, this does not guarantee your application
will then be successful.
16
⊲ Fill out the detailed assessment form
online within two weeks. This adds
more detail to your initial proposal,
as well as the supporting documents
such as a business plan, financial
accounts and governing documents
for your organisation. You can contact
UMi on 0300 1240444 if you have
any questions about this part of the
assessment process.
⊲ Wait while we assess your more
detailed information. We will review
your detailed assessment form and the
documentation you have submitted
to decide if you are eligible to be
considered for a grant.
⊲ If your proposal can be taken forward,
we will assign an assessor to review
your application.
⊲ If your application is not being
progressed, we will contact you to let
you know. The reason that applications
at this stage do not progress further
are generally because the more
detailed information reveals that it
does not meet the fund’s eligibility
criteria. For example, it may become
evident that we can’t fund the proposal
under State Aid rules.
⊲ You will work with your assessor to
develop your proposal, to be reviewed
by the Power to Change grants
committee. This will involve the assessor
visiting your community business
and working with you to complete
an assessment report which will be
presented to the Power to Change
grants committee, if they recommend
you for funding.
If your assessor is not recommending
your proposal for funding, for example if it
becomes apparent that it is not eligible or
ready for funding through the Community
Business Fund, your proposal will not go to
the Power to Change grants committee. Your
assessor will get in touch with you to explain
why your application was unsuccessful.
⊲ The Power to Change grants committee
will then review your assessment
report and make a decision about
whether Power to Change will fund your
proposal. We will contact you as soon
as possible after the meeting and within
one week to let you know whether you
have been successful.
During this stage we may talk to you about
revising your proposal, or to consider part-
funding, other investment and the oer of
development support. Your assessor will talk
to you before making any recommendations
or decisions about such changes.
If you are oered a Power to Change
investment:
⊲ We will send you an oer letter to sign
and return.
⊲ Sign and return the grant oer letter
and any additional information
required within four weeks. Applicants
must be able to start their activities
within a maximum of six months of
signing their oer letter.
⊲ Wait for confirmation from Power
to Change that all is in order. You
must sign your oer letter and return
it before announcing the funding
publicly.
Celebrate, announce your Power to
Change investment, and get started on
your community business development!
If you are unsuccessful:
⊲ Your assessor will give you headline
feedback and you will be sent
feedback in writing about why your
application was unsuccessful. The
decision of the grants committee is
final and unsuccessful applications
won't be reconsidered. However,
an unsuccessful application does
not automatically exclude you from
reapplying in the next funding window,
and to other Power to Change funds
and support.
⊲ Read the application guidance to check if
your project is eligible. You are more likely
to submit a good application if you read the
guidance.
⊲ Check that you meet our criteria,
particularly the four community business
criteria. Most unsuccessful applicants
are declined because they aren’t able to
show clearly enough how they meet our
definition of a community business.
⊲ Register online. We will then email you a
link to the application form.
⊲ Fill out the application form online, before
the application window closes. We will
remove partially completed applications
from the system in between application
rounds. Application windows each last
four weeks.
⊲ Wait for a decision. We will tell
you within six weeks of the application
window closing if your application has
suciently demonstrated your project’
s
eligibility under the 12 criteria and is
being progressed.
⊲ If your application is one of those
progressing, we will send you a link to the
detailed assessment form so we can find out
more information about your project.
⊲ If your application isn’t being taken
forward, we will email you to let you
know.
Part Two | Application Process
The process
Application stage
4 week window, decision within
6 weeks
Complete online assessment
2 weeks to complete, decision
within 2 weeks
Work with your assessor
Up to 20 weeks
Award
Up to 4 weeks
Our website and helpline have information on alternative sources of funding and support for community businesses.
17
Impact areas
As a funder we are interested to
know how you would define the
impact areas in which you work.
These are the impact areas that are
of interest to us:
1. Reduce social isolation
2. Improve health and wellbeing
3. Increase employability
4. Create better access to basic
services
5. Improve local environment
6. Enable greater community
cohesion
7. Foster greater community pride
and empowerment.
At application stage you will be
asked to select your primary and
secondary impact areas for your
activities from this list.
Selecting your outcome categories
and associated metrics
At detailed assessment stage you
will work with an assessor to provide
further detail about your impact and
how you currently measure against
your aims.
For each impact area you have
selected you will choose the
outcome categories to report against
at the end of the funding period.
These outcome categories provide
more detail about what you are
aiming to achieve.
The assessor will introduce our
business intelligence platform, Twine,
and discuss how it might be useful to
you in accounting for the community
benefit of your work.
Your reporting requirements as part
of your agreement
Your agreement will include the
outcome categories that you
selected during the assessment
stage and you will receive guidance
about our monitoring and reporting
requirements.
You will also receive a free
subscription to Twine, our business
intelligence platform, which will
enable you to collect useful data
for impact reporting, as well as for
helping your community business to
thrive.
Regular impact reporting
You will complete an online impact
monitoring form every six months
to update us on your community
business and to help us understand
the dierence that your Community
Business Fund grant is making for
your organisation and your local area.
At the end of the investment period,
you will complete a final report about
what you have delivered against your
chosen impact areas and outcome
categories.
Application stage
Detailed assessment Grant award
Post grant award
Part Two | Application Process
Impact information needed during application
18
We want to make it easier for community
businesses not just to survive, but to thrive. To
help, successful applicants will get access to:
⊲ Business development support
We know that tailored business development
support (BDS) can be a valuable way to strengthen
community businesses and build
resilience. Therefore, all successful applicants to
the Community Business Fund are paired with a
peer broker (another community business) to work
with them to identify their BDS needs. Where BDS
needs are identified, we will award a grant for BDS.
There isn't a separate application process for this
support. This is an exciting bottom up approach
to support grantees to strengthen their resilience
and capacity. Find more about our peer brokers:
https://www.powertochange.org.uk/about-us/our-
people/#peer-brokers
⊲ Free access to Twine, our business insights
platform.
Twine is designed to be both simple and powerful;
it aims to make time-consuming data gathering
processes faster and easier. It will enable you to
capture:
⊲ Volunteering data: what are they doing, when,
for how long, and demographic data.
⊲ Visitor data: why they are visiting and
demographic data.
Part Two | Application Process
Grantee support
Support and resources
⊲ A data dashboard that presents all your data in
tables and automatic charts.
⊲ Ongoing user-led development. Have a bright
idea? Get in touch!
Free support and training are available for all Twine
users. The data gathered on the platform is shared
with Power to Change to help us understand the
activities and impact of community businesses
nationally. Help yourself to easy data capture and
help us make the case for community business! Find
out more at: www.twine-together.com
⊲ Power Up! grantee events
All the community businesses Power to Change
invests in are invited to our Power Up! events.
There you'll find out how to maximise your
relationship with Power to Change, and build
connections with other community businesses
across England.
⊲ Resources and advice
the Power to Change website has a host of
free resources for growing your community
business. And our sector experts regularly give
valuable insight and advice via our blog based
on research and experience. Check out the
MyCommunity website for other funding and
support from across the sector.
Be part of the community
business movement
There are nearly 8,000 community businesses
in England and lots of ways to connect and
learn from other community business leaders
like you:
⊲ Find community businesses near yours by
checking our interactive map
⊲ Join the Community Business Network on
Facebook to tap into shared knowledge
⊲ Follow @peoplesbiz on Twitter for news
and updates about the community business
world
⊲ Sign up to the Power to Change newsletter
to receive details about events, training and
funding opportunities straight to your inbox.
⊲ Join a peer network to meet organisations
like yours.
⊲ Take part in Community Business Weekend,
a national open-doors celebration 14-17 May.
Get involved and get free bunting!
19
Part Two | Application Process
Other Power to Change support
Power to Change has other funding and
support programmes to help develop
community business.
Helping start community businesses
Community Business Bright Ideas Fund
The Community Business Bright Ideas Fund is
a support programme for community groups or
organisations at an early stage of development,
who want to become community businesses and
want to have a local, social impact. Successful
applicants initially receive one-to-one business
support from an advisor appointed by Locality, and
then may have the opportunity to apply for a small
grant. Sign up to our newsletter to find out when
the programme reopens.
More than a Pub
The ‘More than a Pub’ programme aims to bring
pubs into community ownership and develop their
role as centres of community which provide
services for local people. 'More than a Pub’ oers a
package of business development support, advice
and loan and grant funding to groups in England to
help them establish community-owned pubs. It is
open for applications.
Homes in Community Hands
Our Homes in Community Hands programme
supports communities to develop their own
housing solutions to deliver aordable homes
for local people. Revenue grants averaging
£50,000 are available for community groups in
the early stages of their community-led housing
development to support feasibility and pre-
development work. Funds will be mostly focused
in Leeds City Region, Liverpool City Region, Tees
Valley City Region, West of England and West
Midlands. Funds will also be available to genuinely
innovative community led housing proposals
anywhere in England. It is open for applications.
Growing existing community
businesses to become sustainable
Community Shares Booster Programme
The £1.6 million Community Shares Booster
Programme matches the investment raised by
community businesses through community share
issues. It oers up to £100,000 in matched funding
and a possible £10,000 business development
support grant to get share oers ready. The
programme is delivered by the Community
Shares Unit and is open for applications.
Did you know?
5% of Power to Change's endowment funds
the work of our Research Institute to help
us make the case for community business,
by commissioning high quality research,
promoting rigorous analysis and stimulating
critical scrutiny and debate. In doing so we
aim to shape both policy and practice.
Every year we research:
⊲ Annual state of the community
business
market to understand which sectors are
growing, and how they compare to traditional
SMEs and charities.
⊲ Annual grantee survey to understand
what we are doing well, what we could do
better and the impact our programmes are
having.
We've also published research on asset
transfers, the future of localism, libraries, the
social value act, accountability and success
guides to room hire, community cafes and
lettings.
And we recently published our interim
evaluation of the Community Business Fund.
20
You can get in touch with our grant partner,
UMi, at any point during your application
process for free advice and guidance.
Did you know?
Call UMi's helpline on
0300 1240444
Email UMi:
The helpline is open Monday to Friday
from 9am until 5pm (4.30pm on Friday).
Calls are charged at the same as a national call
rate.
We aim to respond to email enquiries within
one working day.
Part Three | The application form
In this section you will find all the questions
from the application form, information about
why we ask specific questions and tips to
help you answer the questions.
We've tried to keep the form simple, while
collecting all of the information we need to
make decisions about which applications to
take further. We ask direct questions wherever
possible to gather factual information (on your
organisation, or on finances), while leaving free
text for you to describe your porposal and the
dierence it will make in your own words.
The application form has seven sections:
⊲ A. Porposal overview - 7 questions
⊲ B. Organisation details - 12 questions
⊲ C. Financial information - 9 questions
⊲ D. Locally rooted - 7 questions
⊲ E. Accountable to the local community
- 3 questions
⊲ F. Trading for benefit of the local community -
8 questions
⊲ G. Broad community impact of the community
- 4 questions
Webchat
During helpline opening hours you can also
use webchat to get help with your application.
Visit https://www.powertochange.org.uk/get-
support/programmes/community-business-
fund/ and open a chat box.
Please could you double check
and update the hyperlink if so…
If you are successful, we will ask you for
more information and you may be visited by
an assessor, before we make a decision at
grants committee. Find out more about the
application process on the next page.
The application process with
Power to Change enabled us
to really think about the
dierence our project was
making to the local
community and how it
stacked up financially.
Marie Osborne, Director of Future Wolverton,
a Power to Change grantee
21
QUESTION QUESTION GUIDANCE
1. Proposal title In 140 characters, using simple language, give your proposal a title which
summarises what you aim to achieve. For example, “Conversion of a disused
building into a village community café where local people can gather for social
activities and to enjoy good food.”
2. What is the main type of activity your proposal involves?
Choose one sector.
⊲ Arts centre or facility
⊲ Community hub, facility or space
⊲ Community pub, shop or café
⊲ Employment, training, business support or education
⊲ Energy
⊲ Environmental or nature conservation
⊲ Food catering or production (including farming)
⊲ Health, care or wellbeing
⊲ Housing
⊲ Income or financial inclusion
⊲ Sports and leisure
⊲ Transport
⊲ Visitor facilities or tourism
Your activities may span more than one sector type. Select the main sector
type which best describes your plans. You can then provide further description
by selecting multiple subsector types.
For example, for a community shop which is also a community hub, select
“Community Pub, Shop or Café” for the main sector. For the subsector, provide
further description by selecting “Community Space, Hub or Centre”
Part Three | The application form
A.Proposal overview
This section asks you to provide general information about your project to help us understand what you are aiming to achieve.
22
2. What is the main type of activity your proposal involves? (cont.)
Select all subsectors which apply (up to a maximum of five).
⊲ Arts centre or activities
⊲ Business support
⊲ Business or workspace
⊲ Care service or facility (e.g. nursing home)
⊲ Community café
⊲ Community pub
⊲ Community space, hub or centre
⊲ Community shop
⊲ Conservation of the environment
⊲ Construction activities
⊲ Education support
⊲ Employment support or training
⊲ Energy generation
⊲ Finance or credit
⊲ Food catering or production
⊲ Leisure facility (e.g. cinema)
⊲ Library
⊲ Media or publishing
⊲ Mental health or wellbeing
⊲ Physical health or wellbeing
⊲ Provision of housing
⊲ Sports facility or activities
⊲ Transport
⊲ Visitor attraction
⊲ Waste reduction, reuse or recycling
Your proposal may span more than one sector type. Select the main sub-sector
types which best describes your plans.
For example, for a community shop which is also a community hub, select
“Community Pub, Shop or Café” for the main sector. For the subsector, provide
further description by selecting “Community Space, Hub or Centre”
Part Three | The application form
A.Proposal overview (cont.)
23
Part Three | The application form
A.Proposal overview (cont.)
3. Please provide a brief description of your organisation and your
organisation's aims.
You have 600 characters, which is approximately 100 words.
4. Please describe your proposal.
You have 1800 characters, which is approximately 300 words.
Your answer to this question should include:
⊲ an overview of the overall proposal
⊲ how this proposal fits with the aims of your organisation
⊲ details of what you are requesting funding from Power to Change for
Please refer to our full application guidance which provides examples of what
Power to Change can and can’t fund as part of the Community Business Fund.
5. What will Power to Change funding help you to achieve for your
organisation? Please select all that apply.
⊲ To purchase, expand, develop or refurbish private premises or land
⊲ To move from volunteer led to employing full-time sta
⊲ To significantly increase the number of employees
⊲ To expand services or activities
⊲ To improve quality of product or service
⊲ To takeover or purchase a public asset
⊲ To replace grants with trading
⊲ To generate additional revenue streams
⊲ Other (Please specify- 20 words max)
This helps us to understand how Power to Change funding will impact on your
organisation.
24
Part Three | The application form
A.Proposal overview (cont.)
6. Has your organisation previously applied for a Power to Change
programme? If yes, please select all programmes which you have applied to.
⊲ Bright Ideas Fund (via MyCommunity)
⊲ Bright Sparks competition (now closed)
⊲ Community Business Fund
⊲ Community Business Leadership Programme (via The RSA)
⊲ Community Business Trade Up Programme (via School for Social
Entrepreneurs)
⊲ Community Shares Booster Programme (via the Community Shares
Unit)
⊲ Community Shares Start-Up Fund (via Crowdfunder)
⊲ Homes in Community Hands fund (via Community-led Homes)
⊲ Empowering Places Programme (applications were by invitation only)
⊲ Health and social care community of practice
⊲ Initial Grants Programme (now closed)
⊲ Innovation and Infrastructure Fund (now closed)
⊲ More than a Pub Programme (via Plunkett Foundation)
⊲ Next Generation Community Energy programme
⊲ Peer Network Programme (now closed)
⊲ Places Programme (applications are by invitation only)
⊲ Power to Change grant with Key Fund loan
⊲ Power to Change grant with SASC loan
⊲ Power to Change Research Institute grant
Power to Change works in partnership with dierent organisations to deliver a
range of support and funding programmes.
You are allowed to apply to more than one Power to Change programme. If you
have been unsuccessful with an application to another programme, we would
still welcome an application from you if your proposal meets the criteria for this
fund.
7. If you have previously applied to the Community Business Fund and
been rejected, please explain how you have addressed the feedback
provided and what changes have been made to your application. Word
limit: 600 characters
25
QUESTION QUESTION GUIDANCE
1. Organisation name (as listed with regulatory or registration
body)
Organisation names should be written as registered with Companies House, the
Charities Commission or other registration or regulatory bodies such as Financial
Conduct Authority.
2. Organisation website
3. List any other names your organisation is known by For example, please include any working names or trading names
4. Please confirm if you are applying as part of a consortium.
⊲ Yes, I am applying as part of a consortium and I am the
consortium lead
⊲ I am applying as part of a consortium. I am not the consortium
lead
⊲ Not applicable. I am not applying as part of a consortium.
If you are applying as part of a consortium of organisations, the consortium lead
organisation needs to complete this form.
⊲ 5. If yes, list the other members of the consortium Organisation names should be written as registered with Companies House, the
Charities Commission or other registration or regulatory bodies such as Financial
Conduct Authority.
Part Three | The application form
B.Organisation details
This section asks for information about your organisation and any other connected organisations, to help us understand the legal structures around your
proposal.
26
6. Is your organisation a trading subsidiary of a parent
organisation?
⊲ Yes / No
We are asking this question to understand the level of control your community has
over your organisation.
⊲ 7. If yes, provide the name of the parent organisation
8. What year was your organisation founded?
9. What is your organisational legal structure?
⊲ Charitable Incorporated Organisation
⊲ Community Benefit Society
⊲ Community Interest Company Limited by Guarantee
⊲ Community Interest Company Limited by Shares
⊲ Company Limited by Guarantee
⊲ Company Limited by Shares
⊲ Co-operative Society
⊲ Trust
⊲ Unincorporated Association
⊲ Other (please specify - 20 words max)
Power to Change will fund a broad range of organisational types. This information
helps us understand whether there may be private benefit from your activities.
10. Is your organisation a charity? Yes/No
11. If your organisation is a charity, is it registered with the Charity
Commission?
Yes/No
Part Three | The application form
B.Organisation details (cont.)
27
Part Three | The application form
B.Organisation details (cont.)
12. Please input all applicable registration numbers.
⊲ Companies House Registration Number
⊲ Charity Registration Number
⊲ Society Registration Number
We will use this registration number to search external information sources to verify
information about your organisation and its finances, such as the Companies House
website, the Charity Commission website and the Financial Conduct Authority website.
13. Provide the registered address for your organisation This is the address which you have provided to your regulatory/registration body
14. Provide the correspondence address for your organisation
28
QUESTION QUESTION GUIDANCE
1. Please provide a breakdown of your total costs.
For each item of spend we ask you to provide:
⊲ Total cost (£)
⊲ Amount requested from Power to Change (£)
And to select if it is
⊲ Revenue cost
⊲ Capital cost - building related
⊲ Capital cost – other
Please input data in £ rather than £ 000. For example, If the amount
you want to enter is £20,000, please enter 20000 and not 20.
Please don’t use commas when inputting your financial data.
This will include costs you are asking Power to Change to fund and costs you plan to
fund through other sources. Power to Change will fund up to 75% of revenue costs, up
to 75% of the building-related capital costs and 100% of other capital costs.
⊲ An example of a revenue cost is the cost associated with paying people for their
services, for example, architect fees or employee salaries.
⊲ An example of a building related capital cost is the purchase, expansion or
renovation of a building.
⊲ An example of other capital costs is the purchase of vehicles.
When planning your budget, Power to Change expects that most of the investments it
makes will be spent within one year of community businesses receiving the funding.
Power to Change reserves the right to award funding for a maximum of two years
where its necessity is well-evidenced in the application.
2. What time period are you looking for the Power to Change
investment funding to cover?
When planning your project budget, Power to Change expect that most of investments
it makes will be spent within one year of community businesses receiving the funding.
Power to Change reserves the right to award funding for a maximum of two years
where its necessity is well-evidenced in the application.
Part Three | The application form
C.Financial information
This section asks about financial data for your proposal and your organisation. This is to help us understand the existing level of trading of your business
and how that contributes to your organisation's overall financial health. This section also asks about any other sources of funding you are seeking for this
proposal, as Power to Change will fund no more than 75% of your revenue costs and/or no more than 75% of your building related capital costs.
29
3. Does your proposal involve the purchase of land, the purchase
of a building or significant building work?
⊲ Yes / No
4. If yes, please tell us:
⊲ who currently owns the building or land
⊲ on what terms it is being made available to you, i.e. the type of
the tenure (freehold or leasehold) and, if leasehold, the length
of the tenure and any associated annual charges.
⊲ when you anticipate being able to take ownership of the
building or land if your application to this fund is successful
You have 300 characters, which is approximately 50 words.
Please make sure that you have read the Assets and Buildings Criteria in the
application guidance and are aware of the additional criteria for such applications.
Part Three | The application form
C.Financial information
30
Part Three | The application form
C.Financial information (cont.)
5. What other funding have you already received or are you
applying for to cover the remaining costs of this proposal?
For each source of funding we ask you to select:
Funding type
⊲ Grant funding
⊲ Contract
⊲ Community shares
⊲ Loan finance
⊲ Donation
⊲ Reserves
⊲ Other
Source of funding/Name of funder:
⊲ Access
⊲ Architectural Heritage Fund
⊲ Arts Council
⊲ Big Issue Invest
⊲ The National Lottery Community Fund
⊲ Big Society Capital
⊲ Comic Relief
⊲ Esmée Fairbairn Foundation
⊲ Heritage Lottery Fund
⊲ Locality (UK)
⊲ People’s Health Trust
⊲ Plunkett Foundation
⊲ The Wolfson Foundation
⊲ Sport England
⊲ Other
Amount sought (£)
Amount secured (£)
Amount not secured (£)
We want to know how you are planning on covering the full costs of the prposal. You
can include income which you have already received and spent, if it has been towards
this particular proposal. Please only list income related to this proposal.
Please input data in £ rather than £ 000. For example, If the amount you want to enter
is £20,000, please enter 20000 and not 20. Please don’t use commas when inputting
your financial data.
We also need you to confirm whether receipt of each source of funding is dependent
on whether or not you are successful in your investment application to Power to
Change. For example, if it is a match funding arrangement or if you will be unlocking
local finance if you receive a Power to Change investment.
Contributions from existing reserves can be included as a funding source, but we
cannot accept income from future trading as a funding source.
31
Part Three | The application form
C.Financial information (cont.)
6. Please confirm which financial accounts you have used to
provide the financial information in this application form.
⊲ Your organisation’s annual accounts
⊲ Your organisation’s management accounts
⊲ Your parent organisation’s annual accounts
⊲ Your parent organisation’s management accounts
⊲ We do not have one year’s financial accounts
The Community Business Fund is looking to fund organisations which have at least 1
year of financial accounts.
The data you provide should be from your last set of year end annual accounts which
have been audited or independently examined. If you don’t have a set of audited or
independently examined accounts, please use your management accounts.
Alternatively, if your organisation is a subsidiary of an established organisation, you
can provide the financial accounts of the parent organisation; or if you are applying as
part of a consortium, the consortium lead will provide their accounts.
7. What is the financial year end for this set of accounts? Please
select month and year
If selected “We do not have one year’s financial accounts, this question is not relevant.
8. Please provide the following financial information for your
organisation for your latest set of financial accounts:
⊲ Income
⊲ Expenditure
⊲ Assets
⊲ Liabilities
⊲ Unrestricted reserves (if applicable)
Please use the data shown in your management or annual accounts.
We are gathering this data to help us understand the scale of the proposed activities
compared to the scale of existing work you currently do.
Here is guidance about unrestricted reserves: what should be included when
calculating a charity’s unrestricted reserves.
Please input data in £ rather than £ 000. For example, If the amount you want to enter
is £20,000, please enter 20000 and not 20. Please don’t use commas when inputting
your financial data.
32
9. Please provide commentary on your financial information if you
think it is relevant to your application.
You have 600 characters, which is approximately 100 words.
For example, you should provide commentary if:
⊲ you have significant assets, such as one or more buildings. We are interested
to know the split between your fixed assets, such as buildings, and your current
assets, such as cash in the bank.
⊲ you are a charity and have a very high level of unrestricted reserves which could
be spent on charitable activities.
⊲ you have a small turnover and are requesting a large investment from Power to
Change. If so, we want to hear about the financial management experience of your
organisation and the people involved.
Part Three | The application form
C.Financial information (cont.)
33
Part Three | The application form
D.Locally rooted
QUESTION QUESTION GUIDANCE
1. Please describe the geographical area(s) your
community business serves.
You have 600 characters, which is approximately
100 words.
A community business works to bring benefits to its local community. This
is a clearly defined geographical area e.g. a neighbourhood, a ward, a
village or a subsection of a city. This is your area of benefit.
A community business may choose to conduct its trading activities across
a broader area than its local community in order to create a sustainable
business model and to bring greater benefit to its local community. This is
your area of trading.
Please describe both your current area of benefit and your current area of
trading. Your area of trading may be the same as your area of benefit.
Please also explain why the postcodes you have selected below are
representative of your area of benefit.
2. Please provide us with an estimate of the
population size of your local community (your area
of benefit).
This should show the number of people living in your local community, not
just the number of people your organisation is currently engaged with.
Watch this video about
Granby Four Streets,
a community-led
housing regeneration
community business
to understand what
we mean by locally
rooted.
This section asks about the area in which your community business works and the needs of the communities your business
serves.
Find out more
Please refer to the
Charity Commission’s
guidance on charitable
purpose to check if
your proposal meets
charitable needs: www.
gov.uk/government/
publications/charitable-
purposes/charitable-
purposes
34
3. Please select up to three postcodes which are
representative of your area of benefit and the
communities your organisation serves.
We understand that the area you work in may be larger than 3 postcodes.
Power to Change will use these postcodes to access relevant statistics and data about your local area to
help us understand the needs of the communities your business serves. We will use data from this open data
source dclgapps.communities.gov.uk/imd/idmap.html
4. Tell us about how your local community played a
role in setting up your organisation and developing
your proposal.
Please describe:
⊲ how you know there is demand for your
proposal in your local community e.g. has there
been a petition, a public campaign or other
show of support for the proposal.
⊲ how the community is supporting the proposal,
e.g. through donations of time/gifts or via
crowdfunding
You have 1800 characters, which is approximately
300 words.
Please explain how you know there is a demand for your proposal in your community and any
consultation or market research which you have completed to demonstrate this. We want to hear about
your area from your community’s perspective.
We are interested in funding proposals with a clearly defined and focused area. We are highly unlikely
to fund regional applications. If you are working in a city, please describe the specific neighbourhood
you work in within that city.
Part Three | The application form
D.Locally rooted (cont.)
35
5. Tell us about the people who are engaged with
your organisation. We are interested in finding
out how many people are engaged with your
organisation overall, and how many of those are
from your local community.
Rows
⊲ Full time sta
⊲ Part time sta
⊲ Regular volunteers
⊲ Customers/Service users (per month)
Columns
⊲ Total number of people
⊲ Number of people who are from your local
community
Input data for all that apply. If you don’t know the exact figures, please provide an estimate.
For example, your organisation employs 5 sta in total and 3 of these sta are from your local
community. In this situation, input Total number of people engaged = 5 and Number of people from the
community you serve = 3.
Regular volunteers are people who are engaged with your organisation on a frequent basis, for
example, weekly or fortnightly.
This question will help us to understand the level of community engagement in the day to day running
of the business
6. How many Full Time Equivalent (FTE) sta does
your organisation employ?
Example: A standard working week is five days. If you employ someone who works for 5 days a week,
that person is full time and this corresponds to 1 FTE.
If you employ 3 people who work part time and each works 2.5 days, each person is 0.5 FTE. In total, you
have 3 x 0.5 = 1.5 FTE.
7. On average, how many hours do your volunteers
contribute to your organisation each week?
To calculate the total number of hours per week, please add up the total number of hours contributed
by each volunteer. For example, if you have two volunteers, one who gives 12 hours a week and
another gives 20 hours a week, the total number of hours volunteered per week is 32.
Part Three | The application form
D.Locally rooted (cont.)
36
Part Three | The application form
E.Accountable to the local community
QUESTION QUESTION GUIDANCE
1. Power to Change funds organisations that are run by and
accountable to their local community. This section allows
you to tell us about how your organisation actively engages
local people in decisions about:
⊲ your proposal
⊲ your organisation
You have 1800 characters, which is approximately
300 words.
Communities can have a genuine say in how your organisation is
run in many ways which may include one of, or a combination of,
the methods listed below:
⊲ regular and ongoing consultation
⊲ membership
⊲ ownership
⊲ co-production of activities or services
Please tell us about how the community is involved in ongoing
and regular decision making for your proposal and your
organisation.
⊲ Who are the communities you serve and who do you see your
business as being responsible to?
⊲ How do you consult with your community and how do you
engage with a broad range of people?
⊲ How often do you consult?
⊲ What did your organisation start/stop/continue doing as a
result of your last consultation?
⊲ How has your service or proposal been co-produced with the
local community?
Power to Change funds organisations that are run by, and accountable to, their local community. This section allows you to tell us
about how your organisation actively engages local people in decisions about your proposal and your organisation.
Watch this video
about Sheeld Live,
a community media
hub to understand
what we mean by
accountable to the
local community.
Find out more
37
Part Three | The application form
E.Accountable to the local community
2. If your organisation has members, please tell us about
them.
⊲ Who is eligible to become a member? Is your
membership open to everyone?
⊲ How do people become a member?
⊲ How much does it cost to become a member and are
their ongoing fees?
⊲ What powers do members have over the running of your
organisation?
⊲ How engaged are your members in the running of your
business? When was your last public meeting (e.g.
your Annual General Meeting) and how many people
attended?
⊲ If you have undertaken a community share oer, please
tell us about how you engage with your member
shareholders
You have 1200 characters, which is approximately 200
words.
3. Tell us about the people involved in your organisation’s
governance.
⊲ Trustees or directors (unpaid)
⊲ Trustees or directors (paid)
⊲ Member shareholders (e.g. members who have
purchased community shares)
⊲ Investor (e.g. people who have financially invested in
your organisation and are not members)
⊲ Members who aren’t trustees or directors or
shareholders (e.g. society or charity members)
Please provide the total number of people engaged as well
as letting us know how many of those people come from your
community.
Input numbers against all that apply for your organisation. If you
don’t have exact figures, please provide an estimate. We want to
understand the level of community ownership of your community
business.
38
Part Three | The application form
F.Trading for the benefit of the local community
QUESTION QUESTION GUIDANCE
1. Our organisation is currently trading (earning
income through the sales of goods and/or services)
⊲ Yes/No
Power to Change is interested in understanding if your organisation is
currently earning income through trading such as:
⊲ trade with the public via direct sales
⊲ trade with other businesses or with the public sector e.g. through
contracts
Please do not include grant income as trading income.
2. What year did your organisation start trading
goods and/or services?
This section asks about the current trading performance of your community business and how this trading benefits your local
community.
Watch this video
about Burton Street
Foundation, a vibrant
community hub, to
understand what we
mean by trading for
the benefit of the local
community.
Find out more
39
3. Please provide information on each of the
dierent types of trading your organisation
undertakes.
Rows:
⊲ Trade with public
⊲ Trade with other businesses, including
contracts
⊲ Trade with Local Authorities, including
contracts
⊲ Trade with public sector (excluding Local
Authorities), including contracts
⊲ Trade abroad with the public, other businesses
and/or the public sector, including contracts
⊲ Totals
Columns
⊲ Current trading income
⊲ Trading income forecast for end of funding
period
If you don’t have exact figures, please provide estimates.
Please input data in £ rather than £ 000. For example, If the amount you
want to enter is £20,000, please enter 20000 and not 20. Please don’t use
commas when inputting your financial data.
This is to help us to understand the risk of your proposal coming under State
Aid rules.
Part Three | The application form
F.Trading for the benefit of the local community
40
4. How much did your organisation spend on
trading goods and/or services in the year of your
latest set of financial accounts?
Please only provide the amount of expenditure which was due to your
trading activities.
If you don’t have an exact figure, please provide an estimate.
Please include all relevant costs such as:
⊲ sta costs
⊲ oce expenses
⊲ costs of producing the products or delivering the services etc.
5. If you are not currently trading, please select the
year when you anticipate starting trading?
Select a year.
6. Tell us about your organisation’s trading
activities and how these will be developed through
the proposal.
Please describe:
⊲ your organisation’s current trading activities
⊲ your future trading plans and how you have
calculated your trading income forecast
⊲ how your proposal will help your organisation
to increase and/or diversify your trading income
⊲ how this will put your organisation in a more
financially stable position by the end of the
proposed funding period.
⊲ how your organisation will cover the running
costs of any new assets/activities and how
sta costs will be covered after the end of the
proposed funding period.
Please consider how your organisation will cover the running costs of any new
assets or activities and how sta costs will be covered after the end of the
proposed funding period.
If your organisation is not currently trading, it is especially important that you
explain what research and evidence your trading income forecast is based on.
You have 1800 characters, which is approximately 300 words.
Part Three | The application form
F.Trading for the benefit of the local community
41
Part Three | The application form
F.Trading for the benefit of the local community (cont.)
7. What is your current trading ratio and your
forecasted trading ratio for the end of the funding
period?
⊲ Total income for your organisation forecast for
the end of the funding period
⊲ Current trading ratio
⊲ Trading ratio forecast for the end of the funding
period
The Community Business Fund aims to improve the financial sustainability
of community businesses through support to increase trading income and
reduce grant dependency.
Your trading ratios will be used to understand what proportion of your
organisation’s current and future income is expected to come from trading.
Stronger applications will demonstrate a higher proportion of income from
trading and a more significant increase in the proportion of income from
trading forecasted for the end of the funding period. We will monitor trading
ratios throughout the period we invest in your organisation to check how
they increase as a result of the Community Business Fund investment.
Your current trading ratio will be automatically calculated based on:
⊲ Your figure provided for total income from your last set of financial
accounts in the Financial Information section
⊲ Your figure provided for current trading income in the previous question
Your forecasted trading ratio for the end of the funding period will be
automatically calculated based on:
⊲ Your figure provided for forecasted total income as part of this question
⊲ Your figure provided for trading income forecast for the end of the
funding period in the previous question
Please check that the figures provided are accurate.
42
Part Three | The application form
F.Trading for the benefit of the local community (cont.)
8. Select and rank up to four charitable purposes that
your proposal will address.
⊲ The prevention or relief of poverty
⊲ The advancement of education
⊲ The advancement of health or the saving of lives
⊲ The advancement of citizenship or community
development
⊲ The advancement of the arts, culture, heritage or
science
⊲ The advancement of amateur sport
⊲ The advancement of environmental protection or
improvement
⊲ The relief of those in need because of youth, age,
ill-health, disability, financial hardship or other
disadvantage
Power to Change is a Charitable Trust and as such can only provide funding for activities which
have a charitable purpose. This does not mean that your organisation has to be a charity. Power
to Change funds organisations with a variety of legal structures.
There are certain charitable purposes which we cannot fund as they are outside of our charitable
remit, for example, the advancement of religion. We are also unable to fund services which are
regarded as statutory or Government provision.
43
Part Three | The application form
G.Broad community impact
QUESTION QUESTION GUIDANCE
1. Please select one primary impact area and one secondary
impact area for your proposal.
This will help us to understand the impact your proposal will
have on your local community.
We are interested in knowing the outcomes you are working
on as part of your proposal. In particular we would like to know
whether your proposal fits with one of our 7 core outcome
areas, listed below:
⊲ Reduce social isolation
⊲ Improve health and wellbeing
⊲ Increase employability
⊲ Create better access to basic services
⊲ Improve local environment
⊲ Enable greater community cohesion
⊲ Foster greater community pride and empowerment
This section asks about the change your proposal is looking to bring about in your community and the positive impact of this
change.
Watch this video
about Homebaked,
a community bakery,
to understand what
we mean by broad
community impact.
Find out more
44
2. Who are the main beneficiary groups for your
proposal?
Please select a maximum of three.
⊲ Black, Asian and Minority Ethnic
⊲ Children
⊲ Disability (learning)
⊲ Disability (physical)
⊲ Ex-oenders
⊲ Homeless
⊲ Living in poverty
⊲ Long-term unemployed
⊲ Older people
⊲ Parents
⊲ People with addiction issues
⊲ People with long-term health conditions
⊲ People with mental health needs
⊲ Refugees and migrants
⊲ Victims of crime
⊲ Young people
⊲ Other specific target groups (Please specify - max 50
words)
⊲ Our organisation does not work with specific
disadvantaged groups
Your application will not be eligible for this fund if it only serves and benefits one specific
beneficiary group, unless you are able to demonstrate how your focus on one group has direct
benefits for other members of the local community.
We ask this question to understand the charitable need your proposal is addressing.
Part Three | The application form
G.Broad community impact (cont.)
45
3. What will be dierent about your community and
your local area in three years’ time if your application is
funded?
You have 1800 characters, which is approximately 300
words.
Please relate this to the impact areas you have selected.
Tell us about:
⊲ how your proposal will benefit a variety of dierent groups and address any needs you have
identified in your community.
⊲ the changes you want to see and how investment from Power to Change will help you
achieve this.
⊲ the current strengths and assets in your local area and how your proposal aims to build on
these to address any challenges your community faces.
⊲ if your organisation supports specific beneficiary groups, please describe how the wider
community and other groups can also get involved and benefit from your proposal.
We want to hear about your area from your community’s perspective.
4. How does your organisation ensure that its
governance, sta, volunteers and customers/service
users are representative of your local community (area
of benefit)?
You have 1200 characters, which is approximately 200
words.
Please tell us:
⊲ how your organisation actively encourages equality of opportunity for a wide variety of
people from your local community, particularly those experiencing disadvantage, to engage
with your organisation.
⊲ how your organisation works to include groups which may, in the absence of such eort,
be excluded from participating. For example, disabled people, transgender people, people
with Black and Minority Ethnic (BAME) backgrounds. See our disability inclusion guidance for
further information and guidance on this topic.
⊲ how your organisation puts its equality and diversity policy into practice in its day to day
work.
Part Three | The application form
G.Broad community impact (cont.)
46
We know you will probably have more questions
about your application. You can find frequently
asked questions (FAQs) about the Community
Business Fund on our website here:
https://www.powertochange.org.uk/get-support/
programmes/community-business-fund/
We keep FAQs up to date but if you still
can’t find an answer to your query, you can get in
touch with our grant administration partner, UMi,
on their helpline 0300 1240444 or email
Part Four | FAQs
47
