Friday, 4 March 2016

Love Brum Respond

Further to our post of 2nd March we have written to the Regional Growth Fund, Birmingham Post and Bournville College asking why a RGF grant was made to a non-business and await a substantive response. We will keep you posted......

We have not yet been given any detail from Love Brum as to the circumstances of the application but are very happy to put up these comments (via direct messaging) from a spokesperson:

"The accounts filed represent a 9 month period before the charity was launched, Our very first 9 month period before any donations were received and distributed.

The period was spent registering the charity, setting [up] the office, drafting [in] a team, including the recruitment of over 80 ambassadors, market researching with corporates the offering, implementing processes, vetting over 100 causes etc. And many more tasks attributed to the offering.

Furthermore no connected businesses have charged a single penny for their services. Some of the businesses have donated over £100k in kind services to date.

The RGF grant was applied for and our application was successful. Without the money we simply would not have been able to start Love Brum up and meet the high costs that are attributed to setting a business [?] up of this nature.

The Love Brum process started nearly 3 years ago. Masses amounts of work was done before it was launched. It had to be.

Every single ambassador and Trustee operate [on] a voluntary basis. No expenses are taken. For example, I donate well over 30 hours per week. The door is open to you if you want to get involved as we are looking to expand and recruit people that Love our City.

.......it does upset me to think that you are challenging some very motivated people because if you met them you would be very satisfied that their motivation is for the good of our City. Birmingham needs Love Brum, and so do the causes we are now donating to every single month.

Lastly so you understand the unique charity business model, corporate sponsorship (either corporate membership or service in kind) covers all our overheads so this means every single penny received via individual membership or donation through fundraising activity is distributed to the causes. No costs are taken from this reserved/restricted pot of money.

I hope this helps. Please get on board, we need more help."

Our only observation in passing is why such an elaborate "business model" is needed to make small grants to very small organisations but suppose we shall have to wait many months for the next set of accounts to see. Most charities, of course, show ALL funds received and then an easy calculation can be made as to their costs of governance as a percentage but this "model" seeks to differentiate between incoming monies. Love Brum spent a disproportionate amount on its first set of accounts with accounting giant KPMG and as they are also a "patron" it is to be hoped they will expedite the publication of the figures after the financial year end on 31st March and then we can be satisfied that all is well.

We are certainly not here to denigrate motivated and committed volunteers but when "ambassadors" put this sort of thing on their Twitter profile folk do tend to get the wrong impression especially where taxpayers' money is involved:


IAN CROW MULTIMEDIA LIMITED
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