A guide to third sector trading - WCVA

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It’s an idea, but is it business? A guide to third sector trading 1: Getting started 2: First steps 3: Business planning 4: Legal and governance 5: Funding and resourcing 6: Financial controls 7: Managing growth 8: Management and governance 9: Social enterprise 10: Sources of support Type of tenure Advantages Disadvantages License to occupy Permission (verbal or written) to occupy for a short period (usually up to one year). Can be terminated by either side giving notice Tenancy at will A licence to occupy at the will of the owner/landlord. Tenant may be evicted at any time on as little as 24 hours notice • As with tenancy agreement, excepting no security of tenure • May be exempt from business rates • May allow a new group a chance to demonstrate its capacity to operate and its case for occupying the premises on a more secure basis • As with licence to occupy • May be restrictions on use of premises • Local authority may often need to give only short period of notice • As with licence to occupy Source: ‘Acquiring and managing premises’ Information sheet, Voluntary Action Sheffield (2007) with amendments 184
It’s an idea, but is it business? A guide to third sector trading 1: Getting started 2: First steps 3: Business planning 4: Legal and governance 5: Funding and resourcing 6: Financial controls 7: Managing growth 8: Management and governance 9: Social enterprise 10: Sources of support Pre-empting concerns about risks Handling the risks: There is not scope in this guide to cover the issue of transfers exhaustively. But one of the most serious practical obstacles to asset transfer is concern about the risk involved, mainly by public bodies, but also by social enterprises concerned about the liabilities for management, maintenance and ongoing community involvement. Greater progress can be made by addressing the risks directly and openly together. There is also evidence from experience with at least one Welsh local authority that once fears of risk are settled, the council may be able to be much more generous in the way it disposes of its asset than was envisaged during the negotiations. Potential risks: Guidance material produced by the UK government for community organisations and local authorities comprehensively identifies risks and suggests specific actions to reduce them so that the transfer can go ahead. It successfully removes most perceived barriers to social enterprises taking over council buildings. • Risk 1: Community empowerment objectives proposed by community organisation are vague, weak or not aligned to those of the local authority: − reviewing the objectives − a community needs survey − partnership working • Risk 2: The receiving organisation does not have the capacity to manage the asset: − skills audit, an agreed organisational development plan − access to on-going expertise and advice − a ‘handover document’ setting out responsibilities − formal agreement on the minimum level of usage expected − requirement for a viable long-term business plan − transfer the building on a phased basis, or for a specified period with responsibilities for repairs retained by the council − specialist technical help provided by the council − legal clause on retaining community use if the community organisation ceases to trade. 185
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A guide to third sector trading - WCVA

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