Mrs Thatcher offered a sense of certainty, whether you agreed with her or not

This week I have been reflecting on the passing of Margaret Thatcher and one aspect that has struck me is the sense of certainty she offered, whether you agreed with her or not – “the enemy within”, “the Lady’s not for turning”, and “there is no alternative” being just three examples. John Major said she was never stronger than when she had an identifiable enemy or an identifiable cause. She was unwavering, at least in public, of her convictions. She said things with such certainty that it closed off any contradiction: “Every housewife knows that you can’t spend more than your household’s income”. Actually, many do out of necessity. Much of today’s society is based on debt – student loans, mortgages, credit cards, payday loans – and many households are surviving on debt because there just isn’t enough money coming in.

But it is the certainty of Mrs Thatcher’s outlook that won over many people. Certainty offers comfort, and it allows you to plan.  But what is certainty in these uncertain times? People are concerned about their jobs, or how to manage their household outgoings when salaries are staying, at best, level while food and fuel costs are increasing.

For charities, certainty is what we need in order to plan. In recent years we have not had that certainty as there has been a squeeze on many of our traditional sources of income. BHT is in a better position that some of our partners since we have some secure income from our property portfolio.  But even that now has a lack of certainty as we don’t know what the impact of welfare reforms will be on our rent collection rates.

In more traditional housing associations, our business model lacks certainty as much of our income is dependent on short-term contracts. Some housing associations will avoid ‘short term’ funding such as that offered by the Big Lottery because it is often for ‘just’ three years. But many charities would dearly love to have the level of certainty afforded by a three year contract.

BHT has been very successful in recent years when it comes to Big Lottery funding. This success is due to a large extent to the amazing skills of my colleague Jo Berry who crafts bids like no one I have ever met. She is well assisted by others in the organisation who understand the needs of clients. Our funding is usually for three or four years but in that time we can make a huge difference to the lives of our beneficiaries.  For many of our clients, three years is a lifetime that can see them move from chaos and exclusion into housing, education, training and work.

So while we are faced with much uncertainty, we will continue to apply for Big Lottery funding and thereby have services that impact on the lives of local people in ways that large, national programmes, such as the Work Programme, are not likely to achieve.

Running a marathon has been a lifelong ambition. Guess what I will be doing on Sunday ….

One of my lifelong ambitions has been to run a marathon.  As a young man, many, many years ago, I was a keen runner but never managed a marathon.  This Sunday is the Brighton Marathon, and guess what?  I will be cheering from the sidelines in support of James Danks who is running on behalf of BHT.

James is a recovering addict who just one year ago to the day started a detox programme that has changed his life.

James DanksJames said: “It is amazing to think how far I have come. Just one year ago I was drinking a litre of vodka every day and spending £40 a day on heroin. I was in such a bad way and I knew that things had to change quickly or I could die and leave my sons without their father. I couldn’t let that happen and it was that thought that gave me the strength to get clean and to change my life for good.

“I was offered a place at BHT’s Detox Support Project, something that I thank my lucky stars for every day. I truly believe they saved my life. They have been so supportive and have helped me to deal with some deep rooted issues that have helped me with my recovery and are helping me every day to live a life of abstinence.”

James is not new to running events having completed the Brighton Half Marathon in February of this year in memory of his late wife Zoe and to raise money for BHT.

For the first time since his teenage years, James has a new found hope and plans for the future.

He said: “Exercise and keeping fit has played a huge part in my recovery so it is really nice to be able to combine my new found love for fitness with raising money for BHT. It’s great to feel like I am giving something back.

“I feel confident about the run on Sunday although I know it is going to be tough. Every step of the way I will be thinking about how far I have come in the last year and all of my new and exciting plans for the future.”

Anyone who would like to sponsor James can do so by clicking this link or by contacting Liz Davies on (01273) 645425.

Social media, online support and traditional giving all help BHT deliver services to our clients

Earlier today, as Sussex ground to a halt because of overnight snow, I tweeted about the Amazon wish list for First Base Day Centre.  The most surprising item on the wish list is for sun protection lotion, probably the thing furthest from most people’s thoughts as they slipped and slid into work this morning.

The serious point, of course, is that homeless people are at far greater risk of getting skin cancer than the rest of the population given their exposure to the elements.

The wish list, which can be found here, has a load more items that are very relevant during periods of severe cold.  I spent a few minutes this morning looking at what has already been bought by our supporters from the wish list in the last few weeks:

  • 21 fleece jackets
  • 4 pairs of thermal long johns
  • 7 thermal vests
  • 54 pairs of thermal socks
  • 2 sleeping bags
  • 5 waterproof jackets
  • 21 toothbrushes
  • 12 tubes of toothpaste
  • as well as a whole range of other one off items essential for the work of First Based Day Centre.

Thank you to all those who have helped people keep dry, warm and clean.

I also this morning read a report, published in Digital Donor Review, that showed that only 5% of charitable donations are made through sites such as Facebook and Twitter, even though 30% of respondents said they were inspired to give by social media.

The First Base wish list shows that people like giving in different ways.  At BHT we are fortunate to have some extremely generous benefactors who support our work year on year, those who leave a bequest to BHT in their Wills, and those who support us on the ad hoc basis, although many do so on a regular basis in response to appeals, not least at Christmas time.

BHT is extremely fortunate to have secured a large number of contracts from national and local government, and we are successful in bidding of charitable funds, such as those from the Big Lottery.  However, it is the support of ordinary men and women that makes a real difference in the work we tend to.

From the list above, there are many items that we take for granted.  But for somebody sleeping on the streets of our towns and cities, having dry and warm clothes is important as is their ability to wash their face and clean their teeth.

We should all rally together to save the Whitehawk Inn

I recently visited the Whitehawk Inn and spent a couple of hours with its inspirational director, Frances Duncan. To say I was impressed by its range of facilities and achievements would be an understatement. I think it was the best example of what I have seen either locally, nationally or internationally.  I came back to the office saying that the Whitehawk Inn had set the bar impressively high, and that BHT had much to do to catch up!

So it was with huge concern that I read in today’s Argus that its future is in doubt.  Frances says that this “training centre is at serious risk unless we can persuade individuals and businesses across Sussex to support a campaign that could fund many more years of helping people to find confidence and success through learning and work, and make a significant contribution to lowering the county’s unemployment figures.”

The appeal has already had the backing of Des Pritchard (chief fire officer of East Sussex Fire and Rescue) and Chief Inspector Graham Bartlett (Sussex Police’s commander for Brighton and Hove).

Yesterday I was at the City Forum, organised by DemSoc Brighton, where charitable giving to local charities was discussed and some great ideas were put forward.  However, it sounds as though we need to act fast in the case of the Whitehawk Inn.

I fear that the situation facing the Whitehawk Inn is not unique, but I feel very strongly that this resource is particularly important, not least for women in Whitehawk, whose life choices are greatly enhanced by this amazing facility.

For more information please look at http://www.whinn.org.uk/.

Taking a long term view to survive the cuts

(This is the text of an article published in the Business Argus on 1st February 2011)

I received an invitation the other day to attend a seminar entitled “How to Survive the Cuts”.  It was not a cheap seminar which made me think that one way to survive the cuts is to organise expensive courses on surviving the cuts.  It is a bit like the fad a few years ago when everyone bought the book “How to declutter you life”.  We bought two copies but it didn’t work.

I have been speaking to other organisations recently about how to survive the period of austerity that we are in.  Some are still taking the “let’s wait and see” approach, hoping that things will be alright.  Others are embracing difficult choices and are beginning to make people redundant.

I am reminded about the old joke about a traveller asking a local how to get to a big city.  The local replies, “You don’t want to be starting from here”.  To survive the challenges facing us, you really don’t want to be starting now.  I am fortunate to work with a Finance Director, Nick Childs, who in 2008 (before the banks went belly up) advised me that unless we took some action over the next year, we would have trouble in 2012.

As a result of Nick’s advice, BHT put in place a number of measures to control our costs (including, controversially, reducing salaries), to diversify and increase income streams by moving into new areas of work (geographically and in terms of services/products), and to spread risk.

It isn’t enough to baton down the hatches and wait for the storm to pass.  This storm is likely to linger.  At BHT we are not risk averse.  We are risk aware.  The managers and trustees of charities should always be looking at opportunities and risks three to five years ahead, and making plans that are deliverable.  It is no good putting £200,000 fundraising into your budget when you have never achieved more that £15,000 in a year.  Business Plans and corporate objectives must be meaningful.

And key to survival is cash.  More and more worthy, profitable and successful organisations will go to the wall in the next year because they will run out of cash.  So important is this, at BHT we have just undertaken a fundamental review of our cash situation.  Even though we have some comfort regarding our cash reserves, we felt that an external, objective, even harsh review would be wise. 

As a result, over the next few months we will be putting in place measures to strengthen our cash balances.  These measures are not needed this year, not next either.  They probably will not be needed in the three years after that.  At BHT we don’t merely want to survive, we want to thrive, and for that one has to take a long term view.

Working with the Rich and Famous … and Celebrities

At times of austerity, charities rely, more than ever, on the generosity of their supporters. At BHT we have an annual Christmas Appeal and, once again this year, have been delighted by the generosity of individuals, churches and other groups.

Many charities, particularly national ones, rely on the famous or celebrities. Fame is an enduring characteristic that lasts because the individual has done something of worth for which they will, rightly, be remembered. Celebrity on the other hand, is bestowed on someone who often appears out of nowhere and disappears again after their 15 minutes of fame.

Some charities offer large appearance fees to celebrities to show up at events. Celebrities are often in it for themselves and you work with them at your peril. Famous People are usually conscious of reputation and only endorse a cause or charity when they believe in its values and objectives.

Philanthropists, on the other hand, are rich by most people’s standards. They’re driven by a belief that through their financial support they can make society a better place and through their giving can relieve individual hardship. Many seek no publicity even though they more than deserve recognition.

Many charities, BHT included, rely on philanthropy as well as the generosity of ordinary people to sustain charitable activities that are not funded. But charities that want to survive, indeed thrive, in these challenging times need to look at all potential income streams. I have written previously on the need for charities to engage with social enterprise. Charities also need to look at the stewardship of their resources, diversify their activities, and also look at coming together with other, like-minded organisations in order to achieve efficiencies and ensure that there is no duplication, not least in back office costs.

Apparently, there is already a race to sign up Kate Middleton, soon-to-be Princess Katherine. My advice to her is to take time before hitching her wagon (if you pardon the expression) to any particular cause organisation. She should spend the next two or three years familiarising herself with good causes and only then decide who she is going to support.

The ‘Third Sector’ – diverse, contradictory but with common purpose

On Tuesday evening I spent a very enjoyable few hours at a meeting of the Brighton and Hove Community and Voluntary Sector Forum. At one point there was an exchange about “the sector”. Those represented in the discusion ranged from small voluntary groups such as the friends of a local park through to organisations such as Brighton Housing Trust.

To call ourselves “a sector” is positive on one hand, that we can support each other because some of us have volume and relatively high financial turnover, while others ensure that we remain grounded, aware of the needs of neighbourhoods and communities of interest.

It got me thinking about BHT. On the one hand, BHT is one of the largest charities in Brighton and Hove, employing over 200 members of staff and spending almost £10 million each year within the local economy. But in reality we are a bit of everything that characterises the third sector. We undertake, although in small measure, activities of social landlords delivered through our general needs and supported housing stock, the activities of charities in our support activities, and facilitate activities of communities of interest, such as support for women refugees through Threshold Counselling Service.

Some of these activities generate surpluses, others just about break even, while others require the fundraising and public support that characterises, the reality of many smaller organisations. I wish it was as simple as being able to subsidise activities such as First Base Day Centre which runs at a loss of around £150,000 each year. We rely on the generosity of our supporters to ensure that this essential services can continue.

So when I go to the Community and Voluntary Sector Forum, I can do so as a member of “the sector” understanding what it means in today’s economic climate to have uncertainty regarding our truly charitable activities. And at the heart of this diverse and contradictory sector, we have a common purpose in trying to improve the lives of individuals and communities.

Why I am proud that BHT Enterprises Ltd has bought a PR company

Today BHT, or at least its social enterprise subsidiary, BHT Enterprises Ltd., has bought local PR agency Blue Rocket and its sister agency, Green Rocket.  The purpose of the setting up BHT Enterprises Ltd. (it was incorporated just before Christmas) was to allow us to undertake activities not permitted under our charitable objects, but designed to make some money.  The profits of BHT Enterprises Ltd. are to be gift aided to BHT to support our charitable work, such as running First Base Day Centre that runs at a loss of over £100k each year.

I am proud that BHT has had the vision to set up BHT Enterprises Ltd. given how BHT and our services users will benefit from all profits generated.

Reaction to the announcement has been mixed.  Some have said that it is an imaginative and bold step to take.  Others have questioned why we have done this, given that over the last year we have reduced salaries within BHT.

For example, the Brighton Argus carried the headline “Charity under fire after PR buyout” and reported that “Unions (sic) hit out at purchase following job cuts”.

There have been no “job cuts” at BHT. Not a single job was lost, nor was there any service reduction when we took action to reduce our costs last year. Nor are pensions being cut. There was a temporary reduction in the employer’s contribution last year, but as a result of the savings achieved the full pension contribution has been reinstated from April.

As The Argus itself reported, on the very same day, the delayed impact of the recession on charities presents difficult financial challenges and many are being forced to cut jobs. BHT is one of the few organisations avoiding redundancies by making reasonable pay cuts and taking positive action to increase revenue for years to come.

Charities across the UK recognise that we cannot solely rely on government contracts at a time when public spending is decreasing. The acquisitions of Hastings Community Housing Association (HCHA), Blue Rocket and Green Rocket are part of BHT’s drive to diversify our revenue and become more self-sufficient.

These purchases have been made after 6 months of consultation and due diligence. Blue Rocket and Green Rocket are much-respected profitable businesses while HCHA is a well established provider of housing and specialist support services for young people in Hastings.

Blue Rocket has been successfully trading for more than six years and unlike most companies its committed team has won more lucrative contracts in the recession due to competitive pricing and good value services. The purchase price for the two companies was well below 1% of BHT’s £9.5 million annual turnover and the charity’s cash is protected by creating the new legal entity, BHT Enterprises Ltd. 

The acquisition of HCHA gives BHT £4 million of new assets and additional expertise through its work with young people.

These purchases will pay for themselves over and over again.

These developments strengthen our ability to deliver our Mission of combating homelessness, creating opportunities and promoting change amongst the most marginalised and disadvantaged members of society.  I am proud of what we have done.

Sadness as St Dunstan’s struggles

In the early eighties, immediately before joining BHT in 1985, I spent three and a half very happy years working for St Dunstan’s, the charity that cares for blind ex-servicemen.  I worked at Pearson House, in Abbey Road (later sold to the NHS Trust that runs the Royal Sussex County Hospital).  It was my privilege to work with a large number of First World War veterans, most in the eighties and nineties. It was there that I first met my great friend and colleague, John Holmstrom, who is now my Deputy at BHT.

So it was with great sadness that I read that the charity is having to make job cuts amongst its 200 employees in order to reduce its budget by £2.6 million. The work of St Dunstan’s is very important, supporting as it does over 5,000 men and women.  There is a call to support the charity which you can do on www.st-dunstans.org.uk or by phoning 03001112233.

St Dunstan’s is not alone.  I am aware of a large number of charities that are facing similar difficult decisions, some making redundancies, others reducing services, and others facing closure.  At BHT we took some very painful and controversial action last year, by reducing salaries in order to cut our costs.  Thanks to the foresight of our Finance Director, Nick Childs, we did this in a proactive way, preparing for the impact of the recession on our finances. We have been able to offer all our staff 12 months salary protection, and we have avoided job losses and any reduction in services.

Having said that, it is not easy for the 150 or so of BHT’s staff who will see their salaries reduced at the end of the period of salary protection in July.  Inevitably there will be a hit on staff morale and, I expect, an increase in staff turnover around that time. 

Like St Dunstan’s, BHT relies on the generosity of its supporters, particularly for services such as First Base Day Centre, which operates at a loss of £100,000 each year.  I hope that the public will support St Dunstan’s, and I hope that they will not forget BHT at this time.  You can support our work by donating online at www.bht.org.uk or by sending a cheque to BHT, 144 London Road, Brighton, BN1 4PH.

How should charities like BHT raise funds?

A survey on behalf of the Charities Aid Foundation has found that supporters want charities to make greater use of email and social networking sites to communicate with currentand potential supporters. 69% said they thought charities should make more use of social networking sites.

92% want charities to focus on demonstrating the impact of their work. 53% felt that charities should devote more of their resources to fundraising, but 82% said they should use volunteers to bring in more money.

Only 12% said that they thought charities should do more telephone fundraising and 13% said they should do more direct mailing.

It’s a tough one for those of us who have to make decisions about the use of precious resources. At BHT we spend very little on fundraising activities and have, in fact, cut back on this because we felt that the returns we would receive would reduce during the recession.

I’m always interested to know what our supporters (current and future!) think about our communication and fundraising approach. Let me know what you think, either by leaving a comment or by emailing me directly at andy.winter@bht.org.uk.