1. From supply led to demand
driven: responding to a
changing environment for
infrastructure support services

2. FUNDING – where it comes from
• 2004/5 – income £1m
• 2010/11 – income £3.2m
• Predominantly public sector funding but not
over-reliant on one funder
• Joys and challenges of working in a 2 – tier
local government system

3. FUNDING – the strategy to date
• Deliberate focus on securing funding for discrete
projects not increasing core funding.
• Pitching ideas to the public sector not competing with
other voluntary organisations through tenders – “you
could better support volunteers and voluntary
organisations if you funded us to…..”
• Leading local partnerships where appropriate – Local
Area Agreement, BASIS 1, BASIS 2, LINks, Working
Neighbourhoods Fund, Safer Communities.
• Not wasting resources for limited return – ChangeUp
• Combining clear strategic approach with
opportunism.

4. SO WHY DID WE NEED TO DIVERSIFY?
• Massive change agenda been coming for the voluntary sector
for number of years. Nothing we’re seeing should be surprise.
• Speed of change – public sector funding cuts, different
models, increased focus on personalisation, localism without
the resources, public service reform bringing added
challenges, increased focus on payment by results.
• Big Lottery consultation “Building Capabilities” part of that
changing landscape
• Shopping list – collaboration, sharing services or merger.
• Recognition that we wouldn’t be immune from funding
reductions.
• In this scenario have had long-term strategy
to reduce own reliance on public
sector-funding.

5. DIVERSIFYING OUR FUNDING
• Historic ad hoc approach to providing CRB service and
payroll.
• Willingness by trustees and SMT to accept the need to
diversify our sources of income – understanding the
risks of change but also the risks of not taking action.
• Appointment of first Business Development Manager
(2006) – brief to explore range of income generation
activities.
• Trading to be the focus of activity.

6. FIRST STEPS
• Purchased business (not company) of
established local HR and training company.
• Set up separate company owned by Voluntary
Norfolk.
• Took over staff and contracts – focus on
business continuity, reducing costs and
duplication and integrating within existing
Voluntary Norfolk activities but essentially low
key approach.

8. CHALLENGES AND DISTRACTIONS
• Implementing the income diversification programme
took longer than planned
– Changes of staff
– Development of Hub and spoke model for Voluntary
Norfolk meant consolidation of number of offices
and move to new resource centre
– Failed merger/takeover of another local
infrastructure organisation
– Managing growth (£3.2m income, 100 staff)

9. A FRESH START
• Developing a distinctive “offer” to the sector which built upon
strengths of Voluntary Norfolk.
• Getting the right people in place – Enterprise and Funding
Development team.
• Getting external support – brand development and marketing
plan, support from Business Link, Knowledge Transfer
Partnership with Anglia Ruskin University.
• Constructing partnerships with small number of private sector
companies to develop WIN-WIN-WIN proposition – needs to
be trust and shared values e.g. HR Support and Employment
Law Service.
• Launch of Charity BackRoom in 2011 – single point of access
for back office services

12. NEXT STEPS
• Ensuring the “offer” is relevant and affordable for voluntary
groups – listening to what groups say they need but realistic
about the challenges ahead.
• Personal service – one stop shop not a call centre, flexible
services, providing value for money, focus on benefits not
features, develop brand loyalty.
• Additional services e.g. new health & safety service.
• Champions within staff and trustees of Voluntary Norfolk and
amongst the wider voluntary sector – developing snowball
effect.
• Collaboration with voluntary sector groups and networks
beyond Norfolk – looking for mutual benefit.

13. IMPLICATIONS FOR DEVELOPMENT
WORK
• Funding cuts – funders want numbers helped. Need to make
most effective use of limited resources.
• Changing focus for development work – Helpdesk (telephone
& email support), surgeries, workshops, events, training NOT
in depth support for limited number of groups.
• Charging for services – managing projects on behalf,
consultancy, part of funding bids.
• Work in progress.

14. WHAT HAVE WE LEARNT? WHAT
ADVICE WOULD WE GIVE?
• Do not underestimate the time, energy and resources
required to invest in a new trading venture – it’s not just about
start-up funding. New trading ventures often don’t make profit
in early days. Managing growth.
• Be clear about the services/products that you are going to
deliver. Can you develop a niche? Are you confident that the
quality of these is/will be on a par with or better than your
potential competitors? Do you know who your potential
competition is?
• Do your homework – just because the sector like what you
offered when it was free doesn’t mean they will or can pay for
it now. Is there a market for your
service(s)?

15. • Understanding different kinds of partnerships: partnerships which
facilitate access to services and markets (e.g. agreement with
Community Matters) & partnerships for delivery (e.g. Health &
safety, employment law). They must offer WIN – WIN.
• Developing the right partnerships for you – don’t accept the offer
if it isn’t one that adds value to what you do. Importance of trust
and shared values.
• Don’t be afraid of change e.g. changed insurance supplier & jobs
partner.
• What’s uncertain? – the potential size of the market & how
quickly it might develop, how willing is the sector to
change/changing attitudes, how much risk can we afford to take,
impact of further funding cuts on group’s ability to pay.
• Before you start the journey be clear about why you’re wanting to
do this before considering the what and the how.