Funding news

Independent evaluation of Futurebuilders published - 1 April 2010

The final report of the independent evaluation of the Futurebuilders programme has been published by Sheffield Hallam University.

The report has found that flexible finance and patient capital have been successful in delivering the aims of the programme, addressing market failure. It also found that Futurebuilders investments generate financial and social returns, and savings to the public purse.

Key findings included:

• Futurebuilders selects strong organisations that perform well. It selects a broad range of organisations with varying developmental needs which it provides with appropriate support.

• Fund recycling, both in terms of capital repayments and interest payments, enables funds to be re-invested in the future. The level of default (where investments are written off) was found to be less than five percent of the current investment book.

• Investments were largely found to be additional – investees would not have secured commercial funding at the same scale and the same time.

• Investee organisations were found not to be displacing existing services, and were providing better quality services and/or meeting unmet needs.

• Futurebuilders investments can quickly lead to additional public service delivery.

• Investee organisations offered an improvement in service and in some cases cost savings to funders.

• The services delivered by investees were found to be addressing largely unmet needs or providing innovation in service delivery.

• Futurebuilders investments can have catalytic effects by bringing benefits which would otherwise not have occurred, or not occurred to the same extent.

To read the full article and download a copy of the full report or an executive summary, visit the Third Sector website.