Derbyshire ProHelp members assist a group to assess their financial sustainability in difficult times

Established in 1984 Home-Start South Derbyshire, a registered Charity, provides varying types of support to families with children under 5 years old, who are experiencing a stressful time in their lives. 

As is the case with many other ‘not for profit’ groups, they became concerned about potential funding cuts affecting their organisation’s sustainability.  With a projected deficit of £20k they were considering the option of selling their building to help sustain the scheme during the current economic climate. 

“ProHelp is a wonderful service; at the time we could not see the wood for the trees.  It was a huge weight off our shoulders; definitely a lifesaver!”

They approached East Midlands ProHelp in March 2010 and asked for professional support to value their property and to conduct a review of their finances to ascertain how long they could continue to run and provide services, if they were to sell and move into rented premises.
Derbyshire ProHelp members, Boxall, Brown & Jones, Commercial Property Consultants were appointed to carry out the property valuation.  Once the valuation was complete, the organisation was put in touch with another Derbyshire ProHelp member, PKF Accountants who agreed to provide a report based on 2 scenarios – a 100% funding cut or a 50% funding cut.  In both scenarios and based on the valuation of their property, PKF projected how long the organisation would survive, taking into account sale and relocation costs.

Tracey Harris (Scheme Manager) said “The report informed us that if we sold the property, we could continue providing services for 2 years if we were to receive no further funding, or 4 years if we received 50% of the funding required. It confirmed that we were doing the right thing in selling the house. It meant we could plan our future; we recruited a part time administrator and it gave us 12 months breathing space to fund raise.  In the end our funding was reduced by only 10%, however we felt prepared to face the worst case scenario”. 

Home-Start South Derbyshire has now sold their property and moved to the Old Post Centre in Swadlincote.  When asked about the relocation, Tracey said  “We have gone from a house to a small office, but its great as we have no maintenance responsibilities anymore and can concentrate on providing services.”