Reflections by Caroline Broadhurst, Deputy Chief Executive, The Rank Foundation
Following the publication of a report by Gareth Hart at Iridescent Ideas CIC, Caroline Broadhurst shares insights from our Repayable Grants Programme in Plymouth.
At The Rank Foundation, our commitment to place-based funding has taught us lots over the years. Plymouth is a prime example of how targeted investment in specific places can drive community impact.
The Repayable Grants Programme is part of our broader place-based funding strategy, which we have refined over two decades.
Developing place-based funding
Our journey began in Burnley in 2001, where we responded to a crisis with a cluster of community initiatives. This initial success fuelled our belief in the potential of concentrated, place-based efforts. Over the years, we expanded this approach into Hull, Dundee and then Plymouth.
We’re opportunistic; we zero in on places with potential. Then our strategy revolves around understanding the unique characteristics and aspirations of each place, nurturing local leadership, and catalysing sustainable community development.
Investing in Plymouth
Since 2018 The Rank Foundation has committed around £5m to the coastal city Plymouth.
We chose the city because of the warm collaboration between the city’s public, private and third sector organisations and because it already had a well-established social enterprise infrastructure. It was recognised as the UK’s first Social Enterprise City in 2013.
Building on these achievements, we sought to maximise development and resourcing opportunities for social enterprises so they could collaborate more effectively to address inequalities. Since 2018 we have supported nearly fifty social enterprises and community businesses that address Plymouth’s social, economic and health challenges.
In April 2022, we launched a £220,000 repayable grant fund for Plymouth, aimed at supporting social enterprises and community businesses. This followed a prior investment in Nudge Community Builders, whose repayments helped establish the new fund.
To date, the programme has distributed over £440,000, thanks to the revolving nature of the repayments.
Learning from the Plymouth Repayable Grants Programme
Gareth Hart’s report shows that Plymouth repayable grants were dependent upon trusting relationships and flexibility. They helped improve sustainability because they give recipients the security and confidence to invest in growth.
1. Trusted local relationships and knowledge
A critical success factor was the local nature of the fund. Recipients felt a strong sense of community accountability, knowing that repaying their grants would enable others in Plymouth to benefit. This created a ‘social contract’ that underscored the communal aspect of the funding.
The presence of local advisory support, provided by partners like Real Ideas and Iridescent Ideas, was invaluable. The supportive environment they created encouraged applications and ensured tailored guidance for each organisation.
2. Flexibility and tailored support
Flexibility in repayment terms, including repayment holidays and zero percent interest, was important but not critical. The terms provided a safety net, allowing organisations to focus on growth without the immediate pressure of financial return.
Continuous dialogue with grantees enabled us to tailor the support to their evolving needs, ensuring that the funding model remained responsive and effective. It also meant there were no surprises for us if an enterprise needed a payment holiday.
We wouldn’t have been able to do that without our local Associate, Phil Davies, and the local advisory support.
3. Sustainability and long-term impact
We developed repayable grants to encourage enterprise and to help us leave a legacy in Plymouth.
While the current financial climate has threatened the resilience of almost every organisation within our Network, our aim is to support long-term community resilience and sustainability not reliance on grants. The Repayable Grants Programme is one response to that.
The idea of a revolving fund – where former grantees ‘pay it forward’ to the next generation of social entrepreneurs – ensured that the impact of our investment can continue beyond the initial grant period.
4. Income for impact
The repayable grant model encouraged social enterprises to focus on income-generating activities.
For instance, Pollenize CIC used their grant to increase their capacity, resulting in an estimated £33,000 of additional income and expanded ecological projects across the city. Other beneficiaries, such as Nudge Community Builders and Trevi Women, reported significant financial growth.
Trevi used the grant alongside other funding, to help purchase and refurbish a building – Blossom House – to support women recovering from trauma and abuse.
Since then, they have secured running costs of over £640,000 from The Ministry of Justice and The Home Office.
What’s next?
The Repayable Grants Programme not only supported individual social enterprises, but we’re told it has strengthened the fabric of the Plymouth social enterprise community, with the ‘pay it forward’ model.
Following feedback from funded organisations, we will explore extending eligibility beyond the Rank Network to increase the potential local impact of this type of funding. Recipients and the local advisory team have also asked us to consider performance-related repayments and leveraging additional match funding to amplify the fund’s impact.
As we continue to refine our approach, we remain committed to sharing our learning and collaborating with other funders to advance the practice of place-based investment. For those interested in exploring place-based funding further or discussing our experiences in Plymouth, I invite you to get in touch.
Get in touch
Caroline Broadhurst caroline.broadhurst@rankfoundation.com
Read the Report from Iridescent Ideas.
[dflip id=”8148″ ][/dflip]