Source: HUB-IN Business, Finance and Governance Models Guide
This page and the supporting links will help you understand the many different ways of gathering money and resources for a project. Including ways that mix multiple inputs from a range of stakeholders – public, private, and community.
HUB-IN toolkit
Hubs of Innovation and Entrepreneurship for the Transformation of Historic Urban Areas (HUB-IN) is a project to revitalise historic urban areas (HUAs) without destroying their historic character. Introducing or increasing the amount of innovation, in a way that is in tune with the spirit of a place.
The HUB-IN toolkit provides a number of tools, including excellent examples of proven methods and case studies. Below we have selected one specific tool from the toolkit that helps with inspiration for ways to encourage different stakeholders to contribute money and resources to inclusive projects.
Collaborative approaches to funding and resources
The public sector (government, councils, etc) have a big role to play in inclusive innovation. Both strategically through setting policy, but also in the way that grants and budget are spent.
But often there is not enough public money to finance all inclusive innovation projects that could have an impact. Or to scale successful initiatives.
So, where there is shared value between different groups and stakeholders, there may be ways to use public money and council resources to encourage other sources of resources and investment to contribute. Or there may be some inclusive innovation projects which generate income. In those cases, community and private stakeholders could be encouraged to fund the project without the need for public money.
Public, Private, Community
The HUB-IN Business, Finance and Governance Models Guide is a very informative report that details a number of different approaches to pooling resources or funds. It shows how from the 3 types of funding – public, private, and community – there are 7 possible combinations.
Each of these combinations typically suits different types of projects.
For example, a ‘public and community’ mix is often suited and found in small scale projects with high levels of community support. Or experimental community projects that require a proof of concept to work out if a new approach is possible. Public and community mixed funding may also be initially used to grow a project up to a certain scale, which is then more financially viable for other other types of finance or business model.
Whereas a mix of ‘private and community’ usually occurs where there is an existing need with a clear vision and financial model, and where valuable assets and/or profits are involved.
For some larger projects there are examples where a ‘public, private, community’ mix has been adopted. This involves all three stakeholders contributing. The Finance and Governance Models Guide details the conditions that suit each of the different funding approaches, and provides real life case studies for all types.
Sources of money
The way in which different groups contribute funding can take many different forms. A range of known ways detailed in the report include:
- Matched funding
- Sponsorship
- In kind and pro bono
- 0% loans (soft loans)
- Crowdfunding
- Profit sharing
- Community banks
- Favourable lease agreements
- Impact bonds
Examples of collaborative funding and resources in action
The HUB-IN Business, Finance and Governance model guide contains over 40 real life examples and the HUB-IN Atlas provides 92 examples from cities across Europe that demonstrate the success of collaborative approaches to funding and resources.
Example: Nod Makerspace
A makerspace, entrepreneurial hub, and public events space
“Community – Initiated by a collaboration of 25 small entrepreneurs who invested time and money.
Wider Community – Crowdfunding is used to engage the wider community and finance new initiatives such as a materials library.
Private – Financial and non-financial contributions are accessed through partnerships with large businesses”
Example: ExRotaPrint
A former industrial complex which fair leases space to manufacturers, creatives, and social groups – that combines protected shared ownership with shared profits
“Community – Tenants have organised bottomed up through a non-profit organisation and a tenant’s association and manage the site themselves.
Foundations – Two foundations, both aimed at preventing speculation with land, have provided resources for the acquisition of the heritage building.
Private – A mortgage from a pension trust that invests primarily in sustainable real estate projects has contributed to renovation activities.”