To consider the above report

Harjit Hunjan, Community and Business Partnerships Manager introduced the report and Members noted the following main points:

Ø  Civic Crowdfunding would help to raise more funds for civic projects.

Ø  There were approximately 500 crowdfunding platforms  which all offered some form of quality assurances.

Ø  A more detailed report was to be brought back to the Policy Committee in September 2016 which would show progress made.

Ø  Most platforms charged between five and 10% or nominal handling charges.

Ø  There were additional costs for marketing to be identified.

Ø  The Community and Business Partnerships Manager had spoken to Space Hive and Crowdfunder.

Ø  Crowdfunding was an increasingly popular way of raising a large amount of money.

Ø  It enabled the local community to engage with local projects.

Ø  Crowdfunding helped to give credibility to ideas.

Ø  People donated small amounts of money which quickly mounted up.

Ø  Because it was an online platform, it was easy to incorporate it with social media.

Ø  Space Hive was a civic funder site and they worked with 25 other Local Authorities.

Ø  Devon and Cornwall had successfully raised large amounts of money through Crowdfunder.

Ø  For the Borough to produce its own Crowdfunding site, it would cost approximately £25,000

The Community and Business Partnerships Manager confirmed that the success of Crowdfunding depended on the type of platform used. the Mayor of London had a Space Hive site which had been very successful. The Chairman commented that Crowdfunding was a good idea as it was an alternative way for community groups to raise money instead of coming straight to the Council for funding. Cllr Jones raised some concerns and stated that expectations would need to be managed. The Community and Business Partnerships Manager confirmed that the scheme did not have to be restricted to business dense areas of the Borough and that other local needs could be met through Crowdfunding. In some cases, the Council could match funds raised by residents.

The Community and Business Partnerships Manager stated that Crowdfunder ran workshops on how to raise awareness and market the scheme; there were also self-help guides. Cllr Cox commented that it was good to know that Crowdfunder could accommodate smaller projects as well as larger projects. He added that residents that directly benefitted might be happier to invest to help get a local need met.

Cllr Burbage commented that the Council needed to be aware of rules on stock sharing. He liked the idea of Crowdfunding Hives, making use of existing platforms and that it had been successful in other parts of the country. The Borough had done a lot through Participatory Budgeting which had helped local groups in a similar way; he felt it was a great idea that the Borough should pursue.

RESOLVED UNANIMOUSLY: That the Policy Committee:

1.    Considered the various crowdfunding platforms as detailed in Appendix A and B;

2.    Approved the exploratory work with Spacehive, or another crowdfunding website as appropriate, in respect of establishing an online funding platform for delivering civic projects in the Royal Borough;

3.    Delegated responsibility for developing and promoting a funding platform to the Community and Business Partnerships Manager in consultation with the Principal Member for Culture and Communities and the Deputy Lead Member for Customer Service Performance; and

4.    Requested a report on progress to go to Cabinet in September 2016.