NICVA proposes innovative schemes for dormant accounts

• dormant accounts

In its draft response to the dormant accounts fund consultation NICVA is proposing a range of options for how the money has been used. NICVA is also keen to hear how you think the sector should respond to the consultation. Among the range of options NICVA has proposed are:

A Community Facilities Energy Scheme: Infrastructure

A scheme linked to the campaign for a Green New Deal to enable community facilities to improve their energy efficiency and therefore reduce their carbon footprint and energy bills.

This scheme could provide funding in terms of part grant and part loan to finance energy efficiency installations at community facilities such as community centres, youth clubs, sports facilities and church halls.
BIG may consider working with a partner from a community development finance institution who could be drawn in to manage the loan finance to utilise their experience in delivering loan finance to community organisations. The scheme might also seek partnership with companies providing energy from renewable sources.  Example projects might include

• Solar panels for energy generation at community centres
• Energy efficient lighting for floodlit sports and recreation grounds
• Conversion from oil to natural gas boilers in church halls

A Community Facilities Energy Scheme: Education and Employment

A requirement of the scheme could be the involvement of the beneficiaries in the choice, development and implementation of the Community Facilities Energy Scheme. This could be provided as a range of measures as part of an overall education, training and employment programme. One part of the Education and Employment programme could be an information and awareness programme for the community to consider the options for improving energy efficiency. A second part of this programme might train young people from the communities targeted by the scheme in vocational skills relating to the energy efficiency industry leading to employment opportunities when the infrastructure is being put in place.

A Community Assets Fund

With more public buildings becoming vacant due to the Review of Public Administration, the closure of Police Stations and schools, the default position is just to sell them off. But these buildings could be put to good use by voluntary and community organisations with the help of a Community Assets Fund.
The Community Assets Fund could provide a loan to voluntary and community organisations to purchase government properties with a further regeneration grant if required to develop the facilities to be fit for their new purpose(s).

The Community Assets Fund might be used for, for example creating a local hub for voluntary and community organisations to share premises and enable greater efficiency by sharing overhead costs.

The Welsh Assembly Government has just set up a community assets fund to help community organisations put buildings to good use and in the hope organisation would collaborate on sharing the facilities.

The scheme would be beneficial for Government in retaining an ethos of public benefit in the disposal of public assets - and not just realising a limited short term financial benefit.

The Children's Bank

Funding could be used to establish a Children's Bank in disadvantaged areas to encourage saving by and for young people. A recent project in the Short Strand raised money and opened a credit union account with £5 for every child.
Every child would benefit from a credit to their account and the scheme could be supported by an education programme.
Community Development Finance Institutions (CDFIs) and commercial banks/building societies could be encouraged to participate and perhaps provide match funding in the scheme. Operational costs could be covered by the longer term assets of the dormant accounts fund transferred beyond the first initial large endowment.
This would differ from the Child Trust Funds in that it would encourage children to begin to manage their own finances and engage in relationships personally with a financial institution.

Will to Give Campaign

Funding could be used to develop a fundraising campaign to encourage individuals to leave a gift to charity in their will. Part of the campaign could fund individuals to establish a will - whether or not it would include a gift to charity. Another part of the campaign would be to raise awareness of the possibilities of leaving a gift to charity.
The campaign is relevant to the dormant accounts scheme in that a good proportion of the proceeds from the campaign will be from forgotten bank accounts not traced following someone's death.

To read NICVA's full draft response please visit here and download NICVA's draft response document