Rural Community Enterprise Challenge Fund

Esmée Fairbairn Foundation, in partnership with the Development Trusts Association, has invited applications for the new Rural Community Enterprise Challenge Fund. This exciting initiative is targeted at development trusts in England serving rural and semi-rural areas.

Please note that the deadline for applications has now passed and final announcements will be made early in 2008.

This initiative aims to accelerate growth of rural development trusts with a good track record and the potential to sustain a successful community enterprise. It aims to enable a trust to take advantage of an opportunity in their area, thus helping to improve its financial sustainability, community impact and ability to tackle disadvantage in their communities.

The programme will run over three years. It is anticipated that approximately 10-12 grants of various sizes will be awarded, with the average grant expected to be around £90,000 per trust for up to three years (not necessarily the same amount awarded in each year).

Participants will benefit from the provision of mentoring, action learning, peer support and business advice during the lifetime of the programme through the Development Trusts Association and external consultants. Evaluation will also be built in from the start.

Applicants would need to demonstrate that they meet the following eligibility criteria:

• That it is a member of the Development Trusts Association;
• Serves an entirely or mainly rural area and the proposed work will directly benefit this area;
• Has been operational for a minimum of three years and has an annual turnover of £100K or over;
• Can demonstrate that the trust is well run and already engaged in enterprise activity;
• Is “ready to go” with a specific initiative to generate earned income and increase community impact. This might be an acquisition or development of a community asset (land or building) or the launch or enhancement of a business venture;
• Has a clear plan for increasing its community impact and improving its ability to tackle disadvantage in its area of benefit.

There are two stages to the application process.

First stage:

Applicants will be required to complete a short form outlining the work for which funding is sought, confirming that the trust already has a business or strategic plan it is working to, along with audited accounts for the last two years.

The deadline for first stage applications has now passed.

Second stage:

Those development trusts submitting the strongest applications will be invited to submit a full application. Short listed applicants will be contacted in the week commencing 16 July 2007.

The full application should include the following:

• A convincing business proposal (including financial projections, underlying assumptions, risk analysis) which demonstrates that extra resource is needed to achieve the plan and take advantage of opportunities which will result in growth and stability.
• Supporting financial information.
• Details of the skills and experience of the key individuals who will be involved in leading on this work/delivering against the plan.
• The purpose of the grant being sought.
• Evidence that good standards are in place on all aspects of the trust’s work, including strong governance, management and leadership.
• Confirmation that the board and staff members are committed to participating in training and activity designed to improve their practice and share experience with other development trusts.
• Details of any expected increase in revenue turnover as a result of receiving the grant and/or of any capital/asset growth.
• Details of how they are supporting disadvantaged groups in their area of benefit and how a grant from the Foundation would enable them to increase their community impact.

All short listed applicants would undergo a formal interview process during which the Director and Chair are expected to talk through their achievements to date and the specific plans outlined in the development plan.