Perhaps we are being a little too hard on a "new-start" charity but if you take a look at its "fancy" website and its incessant social media output you will see that no expense is being spared in "marketing" the charity - perhaps not surprising when marketing people appear to be behind it. The "pitch" is being made to middle/upper class "professional" people in our great City and WASP-ish events are then organised for them to "network" and "fundraise".
Love Brum has formed "partnerships" with numerous companies but then reciprocate with "good news" marketing. Thus, for example, when "partner" the Hyatt Regency promoted a £25 per head (ie way beyond what many people in this City can afford) "bubbles and high tea" fashion show, Love Brum helped to promote it on the basis that they would get any profit from a "raffle":
Just before we have a look at the numbers from the accounts just hold this couple of adverts (ie not a one off but repeated) in your head.
05/02/16
11/02/16
It is also specifically stated in the initial accounts that all running costs come from corporate sponsors and patrons so that "nothing" is deducted from membership fees.
The accounts for the first part year of operation to 31st March, 2015* show that almost the total income of the charity came from just ONE source - a grant of £40,000 (of total income of £40,100) from "The Birmingham Post Growth Fund". Right, let's stop there and just analyse that.....
This is what THE BIRMINGHAM POST itself said about the "Birmingham Post Regional Growth Fund" on 26th August, 2014 shortly after Love Brum - a charity and not a business - was formed and before it got its dosh:
"The first round of the Birmingham Post Growth Fund has opened, with businesses able to bid for up to £100,000 to unlock investment plans.
The Post has promised to create hundreds of jobs all over again after being awarded £5 million from the Regional Growth Fund for a second time.
The funding will be delivered in tranches by The Post and partners Bournville College - and only to businesses unlocking the potential to create jobs and wealth in Birmingham, Solihull and Coventry, with the first round now open."
Just in case you still haven't got it, The Post helpfully explains: "The funding comes from the Government's Regional Growth Fund." In other words folks - it is OUR taxpayers' money they are doling out and NOT The Post's!!!!
And so some questions immediately arise:
Firstly, why was a substantial sum of taxpayers' money intended specifically for businesses and job creation diverted to a new start charity by The Birmingham Post and Bournville College? (Incidentally, in the first set of accounts Love Brum state they have created just one fairly low-paid post. They are NOT a business but, in law, a "charitable incorporated organisation.")
Secondly, if our money was to be diverted from bona fide businesses to a charity run by posh boys and girls, who made the decision to give to them and ignore the hundreds of small charities and associations around our City who have done great work for years but are under the financial cosh in these austere times? Love Brum say that their sole charitable purpose is to make small grants to such organisations who "bid" to them for the money but why should these upstarts be the arbiters of who gets OUR taxpayers' cash (at least in year one)? Why appoint what we shall see is an expensive "middleman" when the grants could have been made direct (once again assuming they are not ultra vires the RGF scheme)?
(Just for the record, The Post article referred to above mentioned that they had previously distributed an earlier tranche of RGF dosh, ie OUR money, and two of the happy recipients had been "Hollywood Monster" and "ORB Studios". Coincidentally, two of the Trustees named in Love Brum's accounts are (Chair) Tim Andrews of Hollywood Monster and Robert Bloxham of, yes you guessed it, Orb.)
So in the first period of operation Love Brum got £40k from the taxpayer and just £100 from other sources (equivalent to 5 "members"). The actual amount distributed to charities by this charity (!) was £0. Yes, nil, although there was over £10k in the bank uncommitted to creditors.
Of the £40,100 income Love Brum with fancy website provided by Orb (but did they charge?) had managed to burn through a colossal £28,560! That is an incredible 71% of the charitable income!
They spent £4,833 on fundraising which, apart from the £40k from The Post seems to have yielded £100! The trustees blew £4,378 on office costs, motoring, depreciation and "advertising". They paid the single member of staff £16,846.
One of Love Brum's "patrons" is accountancy giant KPMG who appear via promoted tweets on the Love Brum timeline and are prominent on the website:
You might think that a small new start charity which "loves brum" so much may have had its simple accounts prepared by some local firm at a reasonable rate but, oh no, the accountants are, yes you guessed it again, KPMG and for a dead-simple set of accounts they charged just £2,503 - a staggering 6% of total income (effectively from us taxpayers).
There are some good people like Jas Sansi and Gary Cardin linked to this outfit. Let's hope they try and get the accounts to 31/03/16 expedited and filed with the Charities Commission so that we can all see that matters have significantly improved and that 100% of money raised really is going to good causes. Clearly costs need to be greatly reduced from 71% of income! Watch this space......
Written by The Crow Flight
WANT TO WRITE ABOUT BIRMINGHAM? CONTACT: iancrowmultimedia@gmail.com
* The accounts say that there was several months of "preliminary work" but the charity was legally formed on 17th June, 2014. Curiously, the accounts are not for a full year but made up to 31st March, 2015.
IAN CROW MULTIMEDIA LIMITED
Registered in the UK: 08892838
