Inspiration – Taking action

In the first of a new series, Tim Joss looks into the world of charities, social enterprises and voluntary and community organisations to find lessons and inspirations for the arts. Here he looks at an example of canny building management.

We start with an irony. Artists explore their inner world and what they find around them. They reach out for inspiration. They draw it in to make new work. And yet, arts organisations are not so good at this. The daily pressures leave little space for wide-ranging explorations, research and testing new and unfamiliar ideas. As a former artistic director and chief executive, I remember those pressures. Now, as a foundation director, I have the privilege of visiting and learning about many arts organisations and other non-profits. Each generously gives me jigsaw pieces that can be assembled to create pictures of activity across the country: for example, of how non-profits measure the effect they are having, of the emerging Community Interest Company sector and of arts organisations building needs.

This last example of buildings is the starting point for this article. The story is about Community Action Network (CAN). CAN supports social enterprises and individual social entrepreneurs in various ways. As well as providing financial investment, business support (the interesting concept of social franchising, for example) and publications, CAN is one of the pioneers of co-location: bringing together organisations with overlapping interests and forming clusters.

If you go to the south side of the Thames and to No. 1 London Bridge, you will discover a large, modern office block. CAN has created a charitable company called Mezzanine 2 Ltd to run 30,000 square feet, spread across three of the blocks floors. Sixty-seven charitable organisations are based there. Speak to any one  the Rayne Foundation is collaborating with five of them  and they will tell you that the facilities are excellent, affordable and environmentally friendly. The space has been designed to encourage interaction and collaboration. Conference and meeting rooms and catering are available. And all this is also within the means of small organisations. Some have just one or two staff members.

The business model is interesting. Mezzanine 2 needed start-up funding and that came from the London Development Agency. However, the model would not be sustainable but for the fact that CAN succeeded in getting 100% rate relief from its local council. It is this that made Mezzanine 2 viable, and means that none of the tenants have to pay business rates. There is no reason why a group of arts organisations couldnt get together, create a separate charity like Mezzanine 2, achieve 100% rate relief for all tenants and derive other benefits from working closely together.

To give a bit more detail on the business rates issue, arts organisations with charitable status know that they are automatically eligible for 80% relief. How many arts organisations know that the final 20% is at the discretion of the local authority? And how many get that extra 20%? I have asked several chief executives recently. Some do, but most admitted that they hadnt realised it was a possibility. An arts organisation with charitable status simply goes to its local authority and claims that 80%. It is a local authoritys responsibility to work out your rates bill, give any reliefs that may be due and collect the money. Each will have its own policy on granting the final 20% relief. You should ask.

And you may think there is a case to go further: to request a review of your buildings rateable value if you think this is too high, or even challenge the rateable value of your premises. To do this, contact the relevant body, which is the national Valuation Office Agency. This assesses rateable values that are the basis for working out rates bills. If you are not satisfied and still believe you have a case then a Valuation Tribunal could become involved. These are independent, judicial bodies that have power to deal with appeals relating to non-domestic rating.

CANs experience was that building a good relationship with the right person in Mezzanine 2s local council was vital. CAN gathered information that showed how the development would meet the local authoritys criteria for granting the final 20% relief. (A common criterion is the degree of benefit to the local community.) Once the right local authority contact had been found, that person became CANs champion and eventually the case was won. Mezzanine 2 won the Research, Support & Advice category of the 2006 Charity Awards. It is not stopping there.

What it wants to do next is boost networking and sharing of expertise: better internal communications, more sharing of resources (including those provided by third parties) and collaborative bidding. CAN is about to launch another Mezzanine in Loman Street in Southwark that will house 280 charities and social enterprises. It is also working on a further Mezzanine in London and one in Oxford. And there is a tool kit called How to mezzanine for others considering sharing space and resources.

Tim Joss is Director of the Rayne Foundation. Previously he was Artistic Director and Chief Executive of Bath Festivals, Bournemouth Orchestras Senior Manager, and an Arts Council Music & Dance Officer.
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For more information on the Mezzanine scheme w: http://www.can-online.org.uk