1. BHP Charity Conference 2013 5 November 2013 Barber Harrison & Platt 2013. All rights reserved.

2. Welcome & introduction Jane Marshall, Head of Charities & Not for ProfitBarber Harrison & Platt Barber Harrison & Platt 2013. All rights reserved. 3. Our chairman Paul McCay, Chief Executive, The Wilf Ward Family Trust Barber Harrison & Platt 2013. All rights reserved. 4. The Wilf Ward Family Trust Est. 1986Current income of 19m p.a1100 staff80 schemes across Yorkshire, Middlesbrough, Humbe rsideProviding social care, respite care, holiday lets and domiciliary care 5. SORP Exposure draft July 2013Major changes from SORP 2005Jane Marshall Head of Charities and Not for Profit Barber Harrison & Platt 2013. All rights reserved. 6. The New Financial Reporting Framework OptionsFRSSEFRS102Gross income < 6.5mTotal assets not exceeding 3.26mAverage number of employees not exceeding 50Unincorporated charities apply the same limits 7. SORP has been developed to support both standards Modular in formatIdentifies recommendations that apply: to all charitiesonly to those charities preparing accounts under FRSSEonly to those charities preparing accounts under FRS102 8. Major changes Trustees Annual ReportStatement of Financial Activities (SoFA)Balance sheetStatement of cash flowsAccounting policies and definitions 9. Trustees Annual Report Clear distinction what all charities must reportmatters which are required of larger charities onlyadditional information which is good practiceInformation relevant to the charitys stakeholdersAchievements in relation to objectives all charitiesImpact of a charitys activities good practiceLarger charity one that needs an audit 10. Trustees Annual Report Going concern Reserves policy Where there is uncertainty explain the nature of thisDisclosure reasons for not having oneRisk management statement is expanded larger charities Explanation of major risks faced How these risks are managedNames of trustees 11. Statement of Financial Activities (SoFA) Number of headings reduced INCOMESORP 2005EDIncoming resourcesIncome and endowmentsVoluntary incomeDonationsIncoming resources from charitable activitiesIncome earned from charitable activitiesActivities for generating fundsEarned from other activitiesInvestment incomeInvestment and other income 12. Statement of Financial Activities (SoFA) EXPENDITURE SORP 2005 Resources expended Costs of generating voluntary funds Fundraising trading: cost of goods sold and other costs Investment management costs Charitable activitiesED Expenditure Cost of raising fundsExpenditure on charitable activitiesGovernance costs Other resources expendedOther expenditure 13. Statement of Financial Activities (SoFA) Net gains/losses on investments To comply with FRS102 SORP 2005ED Net incoming resources/(resources expended) before investment gains/(losses) Net gains/(losses) on investmentsNet incoming resources/(resources expended)Net incoming resources/(resources expended)Transfers between fundsTransfers between fundsOther recognised gains/(losses) Gains/(losses) on investments Gains/(losses) on valuation of fixed assets Actuarial gains/(losses) on defined benefit pension schemesOther recognised gains/(losses) Gains/(losses) on valuation of fixed assets Actuarial gains/(losses) on defined benefit pension schemesOther gains/(losses) Net movement in fundsNet movement in funds 14. Other primary statements Balance sheet no substantive changesStatement of cash flows must for charities applying FRS102those under FRSSE can choose3 mandatory headings investing activitiesoperating activitiesfinancing activitiesReconciles opening and closing cash on the face 15. Accounting policies and definitions In preparing accounts the charity must apply the recommendations of the SORPapply FRSSE or FRS102select accounting policies that comply with FRSSE, FRS102 and SORPFRSSE must retain existing accounting policiesif undertaking a new transaction adopt treatment in FRS102 and SORPFRS102 policies consistent with FRS102SORP supplements the relevant accounting standard 16. Accounting policies and definitionsSORP 2005 Listed the most common accounting policiesED Consideration of the selection of accounting policiesAccounting policies considered in the modules No wholesale changeSignificant changes regarding particular charities 17. Fund accounting Net amount of transfers between funds must net to nilCannot be used for: acquisitionstransfers of trusts from the charity to anotherInstead recognise a gain = net assets acquired; orAdopt merger accounting where relevantReference to loans between funds is dropped 18. Going concern Disclose material uncertainties that cast doubtIf no material uncertainties should also be statedMakes it clear it is the trustees responsibilityTrustees should take into account at least 12 months from date of approval 19. Income recognition Income should be recognised entitlementmeasurementprobable new conceptContingent assets recognised as income when virtually certainIncome receivable discounted for time value of money settlement more than 12 monthseffect is materialapplies to all charities 20. Income from donated goods, facilities and services including volunteers Receipt of donated goods for sale or distribution recognised when received at fair valueif impractical recognise when sold or distributedmajor change from SORP 2005 impracticality of measurement anticipatedtherefore always recognise income at point of sale or distribution 21. Recognition of expenditure Settlement delayed for > 12 months liability discountedif materialapplies to all charitieslikely to affect charities recognising multi-year grants 22. Mixed use investment properties In the balance analyse part used operationally part held for investment purposesIf undue cost or effort analyse as tangible fixed assetsSORP 2005 classified on main use 23. Financial instruments Basic financial assets and liabilitiesRecognise at amount receivable or payable includes transaction costs if materialif not material - expense 24. More complex financial instruments Concessionary loansAdvance fee schemesBuying and selling foreign currency and derivativesRefer to FRS 102 25. Post employment benefits Defined benefit multi-employer plan cannot identify your potaccount for as a defined contribution plan i.e. just contributions paidChange recognise liability to make payments to fund any deficitif the charity has entered into an agreement 26. Total return (investments) Applies to charities invest permanently endowed funds on a total return basisaddresses issues in more detail than SORP 2005table 16 module 20 shows the layout 27. Accounting for social investments Programme related investments (SORP 2005)Mixed motive investments generate an investment returnto further charitable purposesMeasurement FRSSE LoanFRS102Cost less impairmentCost less impairment Or amortised costSharesCost less impairmentFair valueOrOrFair valueCost less impairment 28. Accounting for branches Excluded from the ED definition of branches are Charities that are independently governed by a separate board of trusteesGroups of people who raise funds for a charity or number of different charitiesSpecial interest groups affiliated but do not undertake charitable or fundraising activitiesExcludes incorporated entities administered by or on behalf of reporting charityfunds held for purposes of the charity 29. Charity mergers Detailed guidance Criteria that must be metHow to merger accountCircumstances where changes to form e.g. incorporation can allow merger accounting 30. Accounting for joint ventures Equity accounting in consolidated accounts SoFA one line share of income or expenditure Balance sheet share of net assetsSORP 2005 required gross equity method makes a nonsense of the SOFA 31. Definition of related parties Alignment with Charities Act 2011 section 118FRS 102 section 33Charities and Trustee Investment (Scotland) Act 2005Detailed guidance in the ED glossary 32. So what is next Consultation ended yesterdaySORP committee will considerFinal SORP will be issued next yearEffective accounting periods commencing 1 January 2015Not that far away 33. Thank you This presentation and any accompanying notes are provided as information only and should not be relied upon as advice, or treated as such. No liability is accepted for any errors of fact or opinion they may contain. Professional advice should always be sought before making any decisions. Jane Marshall Head of Charities and Not for Profit jane.marshall@bhp.co.uk 0114 266 7171 34. Charity Finance Group Katherine Smithson Policy and public affairs officer Charity SORP Exposure Draft: Feedback on the consultation process 35. Charity Finance Group (CFG) Membership organisation with over 2200 members, all responsible for financial management in charities Inspiring financial leadership Promoting best practice and ensuring a proportionate and effective regulatory environment 36. Getting charity views on the SORP consultation SORP briefing events Printed copy of the SORP for all CFG member charities CFG briefing paper with questions for charities on what they want reflected in the SORP Consultation events across the country with the Charity Commission CFG Technical Accounting Forum 37. Technical Accounting Forum A group of CFG members and auditors from professional firms Chaired by CFG member Rui Domingues, Friends of the Elderly During the SORP consultation there was a huge increase in numbers of CFG members engaging in the forum The forum met twice and helped to develop our response by email 38. What were the things we couldnt change? New UK GAAP FRS 102Treatment of repayment agreements for multiemployer defined benefit pension schemes Income recognition is based on probable not almost certain Income will include unrealised investment gains Staff remuneration disclosures Valuing volunteer time and donated goods There is a charity concession on the latter point 39. What were the hot topics and key issues for charities? 40. FRSSE: To include or not to include? Pros: Vast majority of the sector is technically able to follow the FRSSE Keeping it will enable many charities to keep their current accounting policies Easier for smaller charities to adapt to new SORP No cash flow statements required Cons: Based on old UK GAAP and fast becoming outdated Has not been consulted on as a whole standard little assurance that it is fit for purpose for charities Developments elsewhere BIS consultation following EU DirectiveLikely to be FRC consultation on FRSSE in near future 41. FRSSE days are numberedBut; CFG has proposed that the option to apply the FRSSE is maintained in the new SORP, why? Dis-applying the FRSSE would impact most on the smallest charities 42. Income recognition Now based on probability, entitlement, and measurement Previously based on virtual certainty Not too much difference expected from this change 43. Treatment of legacy income has always been inconsistent across the sector We asked charities Do we base these criteria on legal events such as probate, notification by the executor?Do we leave it to judgement of individual charities based on principled approach?They said All sorts of different things! 44. Grants Should charities be disclosing a list of all their grants in the notes to the accounts?What charities told us This will probably take up a lot of space! Detract from other activities Against cutting clutter? Already make available elsewhere CFG has taken this view in our response as long as the information is made available elsewhere 45. Salaries Charities already disclose number of individuals in salary bands increasing by 10,000 above 60,000 FRS 102 introduces concept of key management personnel and asks for more information on the salaries of these individuals SORP ED proposed that charities disclose the salary and job title of top paid employeeDrive to increase transparency But, fairly arbitrary informationCFG has taken the view that the current treatment is actually more useful to the user of the accounts and should suffice but could recommend: Disclosure of remuneration policyMore detailed information on salaries if it supports user to understand staff costs 46. SoFA 47. What we said Charities want to keep the columnar formatCosts of managing investments should be separated when materialRemove words like cost 48. Other areas covered Treatment of grants matching and performance based approaches Social investments How do we treat Mixed Motive Investments? Groups and branches Presentation Performance reporting Keep it simple! 49. Contact details: Katherine.smithson@cfg.org.uk 0207 250 8347 50. Questions Barber Harrison & Platt 2013. All rights reserved. 51. VAT update Simon Buchan Head of VAT Services Barber Harrison & Platt 2013. All rights reserved. 52. Contents Investment management feesCultural exemptionCharity annexesListed places of worship grant schemeThomas FuchsThe future 53. Mechanics of VAT recovery 54. Investment management fees 55. Investment management fees Facts and issues Recovery of VAT on costs of managing endowment fundWhether the operation of the fund was an economic activityIncome from fund used to support activities of the University generallyWhether cost of managing the fund was overhead expenditure? 56. Investment management fees Outcome Win for the universityCosts regarded as overheadsVAT recovery according to partial exemption position 57. Investment management fees Is this the final position? Probably notTLLC Ltd Travel Lodge Tribunal decision has muddied the watersHMRC may appealWatch this space 58. Investment management fees What now? Review how VAT treatment on investment management costs and submit claims to HMRC if necessary for the last four yearsIf HMRC appeal claims will not be paid but your position will be protected 59. Cultural exemption 60. Cultural exemption HMRC have lost two cases recently in the First Tier Tax Tribunal British Film Industry The issue was whether the cinema is cultural?Wildlife and wetlands Trust The issue was whether sites operated by the trust were zoos?Implications Cultural exemption may need to be amended?Potential VAT refund opportunities for bodies not currently within the exemption 61. Charity annexes 62. Charity annexes Chelmsford College Case The issues Could construction of annexe be zero-rated? Facts Annexe constructed Relevant charitable purpose Building contained some of its own facilities Not capable of independent operation because Shared admin services with main college buildingDid not have own heating facilityImplications Has created more uncertainty Appears to raise bar to obtain zero-rating Appears to contradict HMRC guidance An appeal likely? 63. Listed Places of Worship Grant Scheme 64. Listed Places of Worship Grant Scheme Originally set up to provide grants to religious organisations to compensate them for VAT on repairs and maintenance works 65. Listed Places of Worship Grant Scheme 2012 changes From 1 October 2012 the LPWGS was extended to include alteration works to listed places of worship increased funds available to compensate for the withdrawal of VAT zero-rating on alterations to listed buildings 66. Listed Places of Worship Grant Scheme Further changes to LPWGS now allow claims to be made for works to pipe organs, turret clocks, bells and bell ropes professional fees eg architects incurred in relation to eligible building worksProvided the works are supplied from 1 October 2013 onwards Religious organisations and charities whose main purpose is to conserve, repair and maintain redundant churches may also claim under LPWGS from 1 October 2013 Changes were announced to simplify the claims process For full details visit www.lpwscheme.org.uk 67. Thomas Fuchs 68. Thomas Fuchs Facts Cost - 38,500 VAT - 6,500 No storage capacity Electricity sold 11,000 kWh Electricity purchased 44,500 kWh Sale price = purchase price - 0.18 69. Thomas Fuchs Art 4.1, 6th Directive The exploitation of tangible or intangible property for the purposes of obtaining income therefrom on a continuing basis. Outcome Income obtained because electricity sold to network for consideration Continuing basis because contract with network was for an indefinite duration But economic reality?consequences for UK cases on business?wider relevance for input tax recovery (ie need for profit)? 70. Implications for the charity sector Taxable activity counts towards VAT threshold Reinforces HMRCs views on business activities other Trading activity for tax purposes Consider trading subsidiary 71. The future 72. The future EU VAT developments EU Commission is looking at VAT treatment of public bodies including charities Consultation released on 14 October 2013 4 options being considered full taxation optionrefund systemabolition of Article 13an option to tax 73. The future UK VAT developments Increased VAT recovery for search and rescue charities? Fair playing field review recommended that VAT recovery on the non business activity of charitable providers of NHS Services should be on the same basis as the NHS any change unlikely to be in the 2014 budget 74. The future Submission of VAT returns Must be submitted electronically from 1 April 2010 very limited exclusions insolvency, religious beliefs First Tier Tax Tribunal recently ruled this potentially discriminates against certain sections of society including disabledthe elderlyresidents in rural areas No response from HMRC yet 75. Tax update Rachelle Rowbottom Senior Tax Manager Barber Harrison & Platt 2013. All rights reserved. 76. Tax update Gift Aid Small Donations SchemeCharities OnlineRetail Gift AidDigital GivingPayroll GivingSocial investment tax reliefEmployment allowanceBusiness ratesOther developments 77. Gift Aid Small Donation Scheme (GASDS) the basics Top-up paymentsSmall donations - 20 or lessFrom 6 April 2013eg street collectionsNo declarationsLimit - 5k donations per tax year receipt of 1,250Not a tax reliefCharities OnlineTwo years from end of tax year to claim 78. GASDS more detail Cash not cheque Banked Eligibility conditions Special rules for mergers/changes to legal form Gift Aid claims 1:10 Connected charities share the 5k 79. GASDS community buildings Charitable activities in community buildings Possibility of additional 5k per community building Similar allowance for different structures At least 10 beneficiaries At least 6 occasions in year Participation/Interaction Eg religious service, support group Not counselling on one-one basis Subject to matching rule Detailed guidance/examples published by HMRC Opportunity 80. Charities Online Launched 22 April 2013Compulsory from 1 OctoberReplaced the R68i formThree ways to make claims 1. 2.Online form and spread sheet3.New form ChR1In-house or third party softwareAct now Decide which option is best for youNeed to register for online optionsNeed to order ChR1s 81. Retail Gift Aid System has been reviewedSimplificationEffective from 6 April 2013Existing method can be usedNew methods Method A and Method B optionalStandard letters updatedRationale for commission charges 82. Retail Gift Aid Where donor agreesProviding total sales proceeds: Less than 100 where charity operates shop; orLess than 1,000 where trading subsidiary operates shopIf exceed limits, letter needed to confirm excessDonor can request for tax relief purposes 83. Digital giving Consultation closed on 20 September 2013 Increase take up on digital donations eg online, text message Concern that due to technological developments, HMRC always catching up Single declaration through same channel Universal Gift Aid Database Wording of Gift Aid declarations Possibly staged implementation Finance Bill 2014 and 2015 84. Payroll giving Take up been low 2% of employers, 3% of employees Consultation responses published in September To reduce processing time 60 days to 35 days PGAs to remain charitable only Terms of service level agreements Online resource at gov.uk 85. Social investment tax relief Announced budget 2013 Consultation now closed Income Tax relief for investment into social enterprises (charities/CICs/CBSs) by individuals Similar to EIS relief Rate of relief to be announced by Chancellor in Budget 2014 New way of raising funds 150k in any 3 year period per social enterprise At a cost to Gift Aid donations? Draft legislation December 86. Employment allowance Bill introduced to Parliament April 2014 2,000 tax cut Reduction to employer NIC bill Delivered through payroll software and RTI To be claimed Yes/No indicator 87. Business rates Funding changed Responsibility being shared between central government and local authorities Taking harder line Mixed use properties are an issue Eg used by charity and trading subsidiary Mandatory relief at risk 88. Other developments Gift Aid benefit limits HMRC has agreed to look at them CTG are establishing a working group egsTainted Charity Donations Updated guidance published by HMRC Under continuous review Where donors enter into arrangements to obtain a financial advantage 89. Conclusion Progress on recent announcements Watch this space Charities online make sure in hand GASDS review rules and claim what you can 90. Thank you This presentation and any accompanying notes are provided as information only and should not be relied upon as advice, or treated as such. No liability is accepted for any errors of fact or opinion they may contain. Professional advice should always be sought before making any decisions. Rachelle Rowbottom Senior Tax Manager rachelle.rowbottom@bhp.co.uk 0114 266 7171 91. Questions Barber Harrison & Platt 2013. All rights reserved. 92. Breakout sessions Option 1 - An update of the cost sharing exemption Box room 3, third floor Option 2 - Auto-enrolment are you on the journey? Box room 2, third floor Option 3 - Trustee responsibilities and decision making Remain in the main conference room Barber Harrison & Platt 2013. All rights reserved. 93. Legal Structures for Collaborative Working Malcolm Lynch, Partner Charities and Social Economy Team malcolm.lynch@wrigleys.co.uk www.wrigleys.co.uk Tel: 0113 244 6100 94. Introduction Spectrum of collaborationStructure points to consider Key issuesCollaborative structures Pros and ConsNext Steps 95. Spectrum of Collaboration FlexibleVolunteerAgencySub Contractors Joint Venture PartnershipEmploymentRestricted/ControllingCorporateLess Control 96. Collaborative Working An Overview 3 principal formsConsortium (Lead Partner) Principal (Prime) Contractor New Legal Structure implications advantages disadvantages 97. Collaborative Working Consortium Assume charitable trading The ABC ConsortiumA CoB CoC Co Lead Partner 98. Collaborative Working Consortium A brand separate from its components Bind with a Memorandum of Understanding Lead partner for bid submission Other partners agree to work with lead partner Other partners pay contribution from successful bid to lead partners 99. Collaborative Working Contracts with Procurer ProcurercontractcontractA CoC Co On behalf of ABC ConsortiumcontractB Co 100. Collaborative Working Responsive, but success will depend upon joint planning Retain company independence, but contractual commitments do exist A first step Problem if bids are not successful, is lead partys bidding costs covered? 101. Collaborative Working Consortium Procurer knows several parties in consortium Each party has specified role set out in bid to Procurer Works well if all members pull their weight Procurer expects all will deliver if one fails 102. Collaborative Working Procurer contractLead Partner/Principal (Prime) Contractor contractContractorcontractContractorcontractContractor 103. Collaborative Working Lead Partner/Principal (Prime) Contractor No formalities, but a written agreement is recommended Leadership or domination? Retain independence, but contractual commitments do exist Risk apportionment and liability (How much of main contact is contractor responsible for) 104. Collaborative Working Prime Contractor - Contractor Costs and reward apportionmentCan Prime pay you in advance? Is fee for contract too little? Does being a Prime or Contractor damage reputation? 105. Collaborative Working New Legal Structure Procurer contractNew Legal Structure membershipCharityCharityCharity 106. Collaborative Working New Legal Structure Formal Choice of structure Allows flexibility around independence, but contractual commitments do exist Risk apportionment & liability Risks of reverse takeover of members? 107. Legal Structures Which legal form? Risk unincorporated -v- incorporated Finance Grants Trading Share capital LoansProfit/surplus Voting/democracy 108. Collaborative Working Charitable or trading activity? Assumptions to date charitableIf non-charitable trading activity then consortium member is trading company 109. Collaborative Working Non-Charitable Trading Activity LLP Structure Trading Trading company companyCharity A CoTrading companyCharity B CoTrading companyCharity C Co 110. Legal Structures Trusts/Unincorporated Associations X Partnerships X Industrial & Provident Societies ? Companies Community Interest Companies ? Limited Liability Partnerships Charitable Incorporated Organisations 111. Legal Structures Partnership Act 1890 Business in common with a view to profit No formalities Partnership Agreement No separate legal personality No limited liability Flexibility 112. Legal Structures Companies Act 2006 Guarantee or Share & CIC models Memorandum and Articles of Association Shareholders Agreement Separate legal personality Limited liability Flexibility 113. Legal Structures Limited Liability Partnerships Act 2000 Notice of Incorporation Members Agreement Separate legal personality Limited liability Flexibility Transparent tax treatment Is a trading activity created in charity? 114. Collaborative Working Why Collaborate? Pros and cons Forms of collaborationThe spectrum of collaboration Flexibility and freedom to contract Rigid structures and legislative compliance degrees of control 115. Collaborative Working Advantages Sharing information resources Savings economies of scale Spreading risk Strength reputation 116. Collaborative Working Disadvantages Loss of autonomy Costs time and resources Reputation supporters staff Aspirations mission drift objectives 117. Collaborative Working Fundamental relationship requirements Are you ready? your values, aims & objectives Are your partners ready? their values, aims & objectives Risk Management financial due diligence management systems Insurance 118. Collaborative Working Fundamental relationship requirements Legal Issues legal due diligence objects Purpose/area of benefit powers authority duty of care/conflicts of interest Usual Contract Terms 119. Collaborative Working Fundamental contract requirements Binding agreement Fit for purpose Clear Capable of addressing contingent circumstances 120. Collaborative Working Some contract principles The requirement for written terms The impact of implied terms Business ethics Custom and practice Statutory terms Default provisions Partnership Act 1890 Limited Liability Partnership Act 2000 Companies Act 2006 121. Collaborative Working What do you expect to see? Usual termsParticular contractual issues Confidentiality Data Protection Freedom of Information Price Fixing Competition Intellectual Property 122. Resources Charity Commission Collaborative Working and Mergers www.charitycommission.gov.uk/public ations/cc34.aspNCVO Collaborative Working www.ncvovol.org.uk/collaborativeworkingCabinet Office Working in a Consortium 123. Legal Structures for Collaborative Working Questions? Malcolm Lynch, Partner Charities and Social Economy Team malcolm.lynch@wrigleys.co.uk www.wrigleys.co.uk Tel: 0113 244 6100 124. Economic Evaluation for Charities Sue Holloway, Director November 2013 125. PBE aims to match professional economists with charities; providing pro bono help to measure performance and understand charity impact, and fostering a culture of volunteering within the economics profession Pro Bono Economics126 126. Established March 2009146 charities-50%33 completed projects UK analysis265 active economist volunteersVfm of interventions 30 129 106Data collection adviceOther economic advice Barnados Pro Bono EconomicsAcademicsPublic sector/ charity Private sectorSTAFF F/T Director F/T Operations Manager P/T Economist managing 40 projects 127. What questions can economic analysis answer? 128. Which intervention is cheaper?Compare two interventions with known outcomes:Cost minimisation analysis identical outcomes e.g. 2 providers of sheltered housing compare total costsCost effectiveness analysis different amounts of the same outcome e.g. 2 different employment programmes compare unit costs cost per job Pro Bono Economics129 129. Is the intervention worth it?Cost benefit analysis Compare value of costs with value of benefits Positive benefit cost ratio its worth it!Social cost benefit analysis CBA including wider benefitsSocial return on investment particular methodology for social CBA emphasising role and input of stakeholdersBreak even analysis No control Pro Bono Economics130 130. Key steps for carrying out economic analysis 131. Estimating impactMeasure outcomes Best estimate of what would have happened anyway (the counterfactual) Outcomes minus counterfactual = impact A measurement minus an estimate = an estimate Pro Bono Economics132 132. Control GroupsNational average PBE: Foundation Training CompanyBefore PBE: MEAM pilots adults with multiple needsMatched records in admin dataset Peterborough Social Impact Bond/MoJ datalabNatural experiment in charity data PBE: BarnardosRCT Education Endowment Foundation/Social Research Unit Pro Bono Economics133 133. Whose perspective?Value to society wont include transfer payments e.g. tax and benefitsValue to Exchequer Increase in tax receipts (+) or increase in benefit payments (-) Potential costs avoided Cashable savingsValue to individuals change in income including benefits (+) Pro Bono Economics134 134. Which benefits?Hard outcomes Qualifications employment lifetime earnings Costs avoided by public servicesSoft outcomes Early stages of econometric work in this area Related to income, so only for those who are earning SROI uses stakeholders to identify proxies Pro Bono Economics135 135. Which costs and values?Input costs Programme costs Volunteer input Other activitiesBenefit values Average costs Marginal costs Pro Bono Economics136 136. How useful would it be for my organisation? 137. Making Every Adult Matter pilots - what FTI measured Service useJoin pilotWithout the pilotsImpactWith the pilotsTime 138 138. Before and After? Clients had had their needs for a number of yearsAverage age of first involvementHomelessness services Drug or alcohol services Mental health services Prison / offender servicesAverage length of involvement239 years197 years158 years2311 years 139 139. Costs of multiple needs - data collected Criminal justice systemHealth and mental health Arrests Other police contact Magistrates court attendance Crown court attendance Nights in prison Nights in police custodyVisits to GP Visits to A&E Nights in hospital Nights in mental health hospital Outpatient appointment CMHT appointmentDrugs and alcoholHousing One-to-one contact with drug and alcohol team Group contact with drug and alcohol team Weeks on substitute prescriptions Nights in inpatient rehab and detox Rough sleeping Direct access hostel Room in shared private rented sector property Own private rented sector tenancy Second stage supported accommodation Own social tenancy 140 140. Findings varied over three pilot areas Cambridgeshire (15 clients)600,000Total cost of service provision500,000Housing services400,000Mental health services300,000Increases in housing, health, and drug and alcohol costs to help clients address their multiple needsHealthcare services200,000Drug and alcohol services100,000 Criminal justice system 0 Estimated service Actual service use use without the pilot 141 Large savings in crime costs resulted in an overall cost saving 141. How was this used? In combination with well-being data and an assessment of the process To highlight that interventions with certain beneficiaries will not necessarily save money in the short term To support the case for further data collection We knew that we wanted a really strong economic evaluation of the MEAM pilots and we knew what we wanted to measure; it is attracting a lot of positive interest from across the sectors in which we work. Ollie Hilbery, Project Director, MEAM Pro Bono Economics142 142. Panel questions Barber Harrison & Platt 2013. All rights reserved. 143. BHP Charity Conference 2013 5 November 2013 Barber Harrison & Platt 2013. All rights reserved.