- A typical Match Trading grant recipient increased their income from trading by £17,000 – a 64% increase over one year.
- The combined increase in income from trading amongst 143 organisations was £5.5 million over a one-year period.
- Match Trading® pound-for-pound matches an organisation’s increase in income from trading; incentivising sales growth for greater financial resilience.
New research shows social-sector organisations incentivised by a Match Trading grant are increasing their income from trading at 2.5 times the pace of those supported by a traditional grant.
Match Trading is a new type of grant-funding that pound-for-pound matches an increase in income from trading, created by the School for Social Entrepreneurs (SSE). By rewarding sales growth, Match Trading incentivises social organisations to develop their trading base, become less grant dependent and so help build a stronger sustainable social sector.
Social enterprises, charities and community businesses typically increased their income from trading by £17,000 – an uplift of 64% – compared with their income from trading in the previous year (calculated by the median). They were incentivised by a Match Trading grant capped at either £4,000 or £10,000, and a learning programme from the School for Social Entrepreneurs. They outperformed a control group of 30 community businesses, who received a traditional grant of £10,000, as well as a learning programme. The control group typically increased their trading income by £6,453 – or only 21% – compared to the previous year. A typical Match Trading grant recipient also increased the ratio of income from trading vs grant funding from 58% to 69% in just a year.
The new research is based on 143 voluntary, community and social enterprise organisations that took part in either of two national learning programmes run by the School for Social Entrepreneurs (SSE): the Community Business Trade Up Programme, run in partnership with Power to Change; or the Lloyds Bank Social Entrepreneurs Programme, jointly funded by the National Lottery Community Fund. The programmes were delivered across the UK by the SSE’s network of regional schools. Students benefit from a learning programme, a grant and a peer-to-peer support network.
Simon Redding, co-founder of Monkey Park CIC, a community hub in Chesterfield, received a Match Trading grant as part of the Community Business Trade Up Programme. He says:
“The Match Trading grant turns funding on its head. It’s a real incentive as you can double your money! The learning programme made us more resilient and helped us to grow our trading and profitability.”
Launched in 2017, Match Trading grants have been awarded to 500 voluntary, community and social enterprise organisations as part of SSE learning programmes. These programmes have been run in partnership with a number of organisations including Power to Change, Rank Foundation, Lloyds Banking Group, the Scottish Government, Guy’s and St Thomas’ Charity, The National Lottery Community Fund and Access – the Foundation for Social Investment.
Match Trading is being developed by the Match Trading Task Force, whose members represent 20+ leading organisations from the social and private sectors.
Carol Mack, CEO of the Association of Charitable Foundations and chair of the Match Trading Task Force, says:
“These latest figures are incredibly encouraging for the future potential of Match Trading grants. Our aim is to help support stronger and more viable voluntary, community and social enterprise organisations, capable of achieving truly sustained impact.”
Alastair Wilson, CEO of the School for Social Entrepreneurs, says:
“Match Trading grants work best when they form part of a learning programme. The supportive environment helps develop the entrepreneur’s skills, confidence and an entrepreneurial mind-set, whilst the Match Trading grant empowers and incentivises the organisation to upscale their trading potential.
“The Match Trading grant is not a magic bullet and should be viewed as one way of helping organisations become less grant dependent. Social enterprises need a range of income sources, from funding to trading, depending on their business model, stage of growth and sustainability plan.”
Jenny Sansom, Programme Manager at Power to Change, says:
“All too often community businesses become dependent on external funding to keep their organisations going. We want to help them shift the balance so they’re more self-reliant, generating more of their own income from the services and products they provide. The new results show that community businesses are thriving on the challenge of the Match Trading grant.”
Fiona Cannon, Group Responsible Business, Sustainability & Inclusion Director at Lloyds Banking Group, says:
“We’re pleased to see these latest figures that demonstrate how Match Trading grants can help drive entrepreneurial behaviour, increase trading income and improve the sustainability of social enterprises. Helping social entrepreneurs to deliver for their community and the wider economy in this way, demonstrates our commitment to help Britain prosper.”
The SSE is keen to partner with other private, public and charitable organisations interested in trying Match Trading grants for the organisations they support (email matchtrading@sse.org.uk to get connected).
ENDS
Further info / interviews
- Hannah Corbett, communications manager, SSE: corbett@sse.org.uk / 0207 089 9120 / 0203 905 3576
- Sophie Hobson, head of communications, SSE : hobson@sse.org.uk / 0207 089 9120 / 0203 905 3555
Notes to editors
About the School for Social Entrepreneurs
We can’t fix issues like poverty, climate change and ill-health alone. That’s why the School for Social Entrepreneurs exists. We help 1,000 people a year develop the skills, strengths and networks they need to tackle society’s biggest problems. We run courses that equip people to start, scale and strengthen organisations that make a positive difference. But we’re not a traditional school. Learning with SSE is inspiring, action-based and accessible. We support people in other ways too, such as funding and mentoring. Lord Michael Young founded SSE in 1997, and we’ve grown to a network of schools across the UK, Canada and India. Together, we’re changing lives and transforming communities. https://www.the-sse.org/
About Match Trading
Match Trading® is grant-funding that pound-for-pound matches an increase in income from trading. By rewarding sales growth, Match Trading grants incentivise social organisations to develop their trading base, so they can build stronger futures. Match Trading grants were created by the School for Social Entrepreneurs from 20 years of experience of helping people to create sustainable change in their communities. They are being rolled out to 700+ social organisations. Match Trading grants are made possible with the support of pioneer partners, Lloyds Banking Group and the National Lottery Community Fund, and development is overseen by a Task Force of 20+ leading social-sector organisations including the Association of Charitable Foundations, Access, Barrow Cadbury Trust, Esmee Fairbairn Foundation, the Office for Civil Society, Power to Change, Social Enterprise UK, and Social Investment Business. By 2020, 500 voluntary community and social enterprise organisations will have been awarded Match Trading grants.
Watch a 90-second animation that explains Match Trading grants.
About the Community Business Trade Up Programme
The Community Business Trade Up Programme is a nine month learning programme accompanied by a grant or Match Trading grant of up to £10,000 for early-stage community businesses that are planning to grow. The programme is run by the School for Social Entrepreneurs (SSE), in partnership with Power to Change and has supported over 200 community business so far and is now in its fifth year. The programme includes 12 learning days, spread over nine months, a mentor and support from a network of likeminded peers. Community Business Trade Up will re-open for applications in the autumn 2020.
About the Lloyds Bank and Bank of Scotland Social Entrepreneurs Programme
The Lloyds Bank and Bank of Scotland Social Entrepreneurs Programme is a 12-month learning programme run in partnership with SSE and jointly funded by The National Lottery Community Fund. It has three levels at Start Up, Trade Up and Scale Up. At Trade Up and Scale Up level it is accompanied by a Match Trading grant of up to £4,000 or £7,000 for social enterprises looking to increase their trading and impact, or to scale. The programme provides an action-based, inspiring 12-month learning programme, delivered through SSE’s network of schools in England and Scotland, a grant and a mentor from Lloyds Banking Group. Launched in 2012, the programme will run for 10 years, is the largest of its kind in the UK and has supported almost 2,000 social entrepreneurs.
The programme will re-open for applications in March 2020. Register interest here and receive information on application dates.
About Power to Change
Power to Change is the independent trust that supports community businesses in England.
Community businesses are locally rooted, community-led, trade for community benefit and make life better for local people. The sector owns assets worth £890m, and comprises 9,000 community businesses across England who employ 33,600 people. (Source: Community Business Market 2019)
From pubs to libraries; shops to bakeries; swimming pools to solar farms; community businesses are creating great products and services, providing employment and training and transforming lives. Power to Change received its endowment from the National Lottery Community Fund in 2015.
For more information please contact: Alex Valk 07384 812777 alexv@www.powertochange.org.uk
www.powertochange.org.uk @peoplesbiz
About The National Lottery Community Fund
We are the largest community funder in the UK – we’re proud to award money raised by National Lottery players to communities across England, Scotland, Wales and Northern Ireland. Since June 2004, we have made over 200,000 grants and awarded over £9 billion to projects that have benefited millions of people.
We are passionate about funding great ideas that matter to communities and make a difference to people’s lives. At the heart of everything we do is the belief that when people are in the lead, communities thrive. Thanks to the support of National Lottery players, our funding is open to everyone. We’re privileged to be able to work with the smallest of local groups right up to UK-wide charities, enabling people and communities to bring their ambitions to life. Website │Twitter │Facebook │Instagram