communitymatters.org.uk

Community Asset Transfer (CAT) Richard Bridge Head of Conusltancy,Training and Quality

communitymatters.org.uk What is CAT? The term ‘Community Asset Transfer’ is defined as ‘where the Council transfers land or buildings into the ownership or management of a Voluntary and/or Community Sector (VCSE) organisation or social enterprise’’.

communitymatters.org.uk CAT drivers “The starting point is the recognition that optimising the use of public assets is not the primary objective: the over-riding goal is community empowerment.” Making Assets Work, the Government’s Efficiency Champion, Barry Quirk Community led Property led Local authority corporate objectives

communitymatters.org.uk Transfer formats Freehold transfer Long term lease Short term lease An annual licence

communitymatters.org.uk CAT transfer terms Less than market value Recognise real value of social impact Recognise the value of and contribution by the local authority Asset lock Co-production

communitymatters.org.uk Myth busters Disposal at an undervalue General Disposal Consent 2003 allows this without permission from Sec State as long as the land disposal contributes to the “promotion or improvement” of the economic, social or environmental well being of the area And provided that the undervalue does not exceed £2m

communitymatters.org.uk Five structures for VCSE organisations Unincorporated association - can be a reg. charity if objectives are charitable Company limited by guarantee with charity status Community Interest Company (CIC) limited by guarantee – cannot be reg. charity but is required to have an asset lock. Community benefit Industrial & Provident Society with an asset lock - cannot be a reg. charity Charitable Incorporated Organisation –new format

communitymatters.org.uk Benefits of Charitable Status Tax relief More opportunities for grants and funding 80% statutory rate relief.

communitymatters.org.uk The opportunity Local organisations often best placed to manage facilities in their local communities It empowers local communities, puts local organisations in control, encourages pride of place Deliver better services to meet the needs of the community Local knowledge, use of volunteers and hands- on management contributes towards community empowerment

communitymatters.org.uk The opportunity Financially –can generate wealth Reduce dependency on grants. Lower overheads and better value-for-money, Apply for external funding Secure loan finance Contribute towards council social, economic or environmental objectives

communitymatters.org.uk Common identified risks Not locally controlled/democratic/ open to all and non profit distributing. Does not have the capacity/ability/skills/experience to manage the asset Does not have cash to refurbish the asset Can’t afford to maintain the asset Asset is captured by minority interest group Asset is not open to all Confusion about liability of organisation Conflict between competing organisations for an asset Little activity or usage of the building Poor reach into wider community. Asset has to be protected

communitymatters.org.uk Practical ways for both sides to assess and mitigate risk Right Governance: A locally-focused, incorporated, non-profit distributing charity/community group/social enterprise Has an ‘asset-lock’ Ensures local control, inclusivity, democratic and accountable. Can prove it has the necessary skills and experience to deliver (policies and procedures). Financially sustainable 3/5 year business plan to ensure long term sustainability Delivering high quality social outcomes Effective monitoring and evaluation that feeds back into developing strategy and services Good community engagement and consultation

communitymatters.org.uk For more information Locality or phone Monday – Friday, 9.30am – 12.30pm. Free advice, support and signposting re. the new rights in the Localism Act and Community Asset Transfer