1. Community Services Programme
Traded Income
and the
Community Services Programme
Paul McLaughlin
Development Co-ordinator

2. Social Enterprise – A Definition
“An enterprise that trades for social/societal purpose, where at least part of its income is earned from its trading activity, is separate from government and where the surplus is primarily re-invested in the social objective”
Forfas: Social Enterprise in Ireland, Sectoral Opportunities and Policy Issues.
(July 2013)

3. Social Enterprise and CSP
In our view….
“Social enterprises are directly involved in the production of goods and services to people on a continuous basis and are defined by the continuous economic transactions
i.e. the sale of the service or product”.
This is one of the reasons that sets CSP supported organisations apart from other not for profit organisations as you (should!):-
Operate as a business
Generates a traded income which is used for social purposes

4. Why Focus on generating traded income?
CSP is only a contribution to wages. Min wage > to €9.25 per hour in Aim for Living wage of €11.50!
Overheads such as rent/utilities etc.
Maintenance costs
To fund development of new or expanded services
Build up of reserves – guarantee your sustainability

5. 2016 recontracting Strand 2 Analysis
131 Strand 2 companies reviewed.
Traded income - 38% of turnover in 2015
For every €1 CSP support provided, traded income of €1.63 is generated.
2015
2014
2013
Turnover
€72 million
€80 million
€77 million
CSP
€16.8 million
€17.2 million
€16.7 million
Traded income
€27.5 million
€27 million
Fund raising
€1 million
€850k
€1.3 million
Public funding
€26 million
€33 million
€30 million

6. Stable ratios
Your service finances should aim to be within these ratios:
Why?
Viability concerns if traded income too low
Need for current staffing levels questionable
If v high, possibly fully commercially viable without CSP support.
Source of Income
Turnover
Traded income
Not less than 30%
CSP contribution
Not more than 50%
Public funds / fundraising / other
The balance

7. Challenges you face. Your Board may view you as a social service.
Geography - sparsely populated rural area or deprived inner city location
Pricing: Affordability
Potential for commercial competition
Declining market – e.g. Basic ICT services

8. What can you do practically?
Ensure paid staff are focussed on the income generating services e.g. Friendly call vs Meals on Wheels?
Make better use of work placement programmes TUS, CE or RSS
Pricing: regular research and review.
Identify new markets – e.g. Educational ICT services in conjunction with ETB’s.
Maximise usage of facilities
Marketing and Promotion Activity

9. What more can you do? At a Strategic Level
Request access to any available training initiatives e.g. “Growing your Social Enterprise” and our mentoring programme.
Social Inclusion Community Activation Programme (SICAP) has a social enterprise objective. Approach your Local Development Company.
Board membership – fit for purpose?
Improve Corporate Governance

10. Corporate Governance

11. Corporate Governance What do we want to see?
Each organisation to have a robust Internal Procedures Manual in place.
This documents Financial & non-Finance procedures
Organisations are encouraged to apply Pobal’s Managing Better Volume 1: Good Governance toolkit –
And to adopt the Code of Practice for good governance of Community, Voluntary and Charitable Organisations.

12. In summary
CSP is an investment in your social enterprise supporting viable community service delivery.
Our support is a contribution towards wage costs - Sustaining your business is up to you.
Act like a business - plan, review, market, adapt.
Use any help/support/resources available
Improve your corporate governance.

13. Thank you for listening
Questions?