Community Asset Transfer guidance

Since the 2010 cuts in government funding, decisions on how the council makes the best use of its land and building assets are more important than ever.

Creating a business case for a Community Asset Transfer

As many organisations applying for a community asset transfer may have limited financial history or facilities management experience, developing a robust business model supported by a solid business case is crucial. This guidance requires organisations to demonstrate their ability to manage a leased asset effectively through a business case validated by council officers.

The detailed requirements of this business case are outlined in Appendix A. It is the organisation's responsibility to create and present the business case, as this forms part of their overall business demonstration. The council cannot produce the business case due to a conflict of interest. However, the council can provide guidance on content, signpost external sources of business support and skills development, and offer feedback on the acceptability of the plan.

Appendix A: Expected contents of a business case for a Community Asset Transfer

The foundation of a successful transfer lies in the organisation demonstrating to the council a proposal with a clear business model rationale supported by a robust business plan showcasing their ability to effectively manage the asset, including the financial and organisational capacity of the applicant.

Community Asset Transfer Proposal and Business Model

Organisation details

  • Who you are and how long you have existed.
  • Current involvement in the community.
  • Legal structure, governance, and how local people are involved.
  • Track record and contact details.

Identified building/land

  • Specify the building or land proposed for transfer.

Lease Duration

  • Indicate the requested lease length.

Financial support

  • Outline any funding the organisation will bring to support the transfer, including refurbishment/remodelling and development grants or loans.

Proposal's needs and benefits

  • Explain how the proposal meets the needs of the organisation's users, the wider community, and the council.
  • Describe the intended use of the building, including planned activities and availability.

Local support

  • Demonstrate local support for the proposal through consultation and show that it is not solely aligned with a single interest group.

Asset operational timescales

  • Provide indicative timescales for when the asset will be operational.

Detailed business plan

  • The business plan is the most crucial document in informing the decision about whether to proceed with a community asset transfer.

All business plans should address the following

Expected outcomes and delivery program

  • Outline the expected outcomes and the proposed program for delivering them.

Proposed impact and benefits

  • Describe the proposed impact and the social, economic, and environmental benefits for the local community.

Asset management and operations

  • Explain the arrangements for managing and operating the asset on a daily basis, including staff, volunteers, necessary expertise, and any training, capacity, or skills building requirements within the organisation.

Legal compliance

  • Address compliance with relevant legislation and regulatory controls, including equality standards, safeguarding, health & safety, disability discrimination, and licensing requirements.

Track record and strengths

  • Highlight the organisation's track record of delivering services and/or managing property.
  • Conduct a SWOT analysis to identify the organisation's strengths, weaknesses, opportunities, and threats.

Market needs and demand

  • Assess the local needs that the activities will be responding to and the beneficiaries.
  • Analyse demand from users for the asset.

Projected utilisation and competition

  • Provide projected utilisation rates and activity timetables.
  • Evaluate the supply of similar activities in the same area and determine the response strategy, whether collaboration or competition.

Pricing and charging guidance

  • Establish pricing and charging guidance for users (individuals and groups) to maximise opportunities for income generation and ensure sustainability.

Marketing and asset investment

  • Develop a marketing plan to promote the asset to potential users, identifying methods and targeted groups.
  • Outline plans for investing in and maintaining the asset, including how all health and safety responsibilities will be met.
  • Identify any sources of finance that the asset transfer will release or attract.

Financial projections

  • Provide financial projections, including a three to five year budgeted profit and loss, a first year cashflow forecast, and any capital expenditure required to develop the asset, demonstrating the longer term financial sustainability of the proposal.
  • Explain the assumptions in the financial plan and provide supporting evidence for any funding arrangements, such as grants or loans.

Risk assessment

  • Conduct a risk assessment to identify potential risks and outline strategies to prevent or mitigate them.
Chat with us