1. A St Margaret's Partnership Chris Cook June 2010 Sustainable Investment in St Margaret's

2. There are conventionally only two ways of raising finance for a charity...... 16/06/10

3. ....donations and loans 16/06/10

4. Investment is almost by definition only through a Limited Company.... 16/06/10

5. ...which is what makes the 'Private Sector' Private 16/06/10

6. St Margaret's Partnership will enable genuine investment in St Margaret's 16/06/10

7. NET's proposed investment framework is a UK Limited Liability Partnership (LLP) 01/06/10

8. An LLP is a corporate body with limited liability.... 16/06/10

9. ...and...errrr...that’s it! 16/06/10

10. As far as the Tax Man is concerned it is a Partnership 16/06/10

11. It is now even used in the Public Sector, where Glasgow has five municipal LLPs 01/06/10

12. ...which are a new variant of PPP 01/06/10

13. NET has developed the Capital Partnership Capital Partnership Investors Customers Custodian % % £ 16/06/10 Managers

14. Embryonic Capital Partnership - Hilton Group 2002 Capital Partnership LLP 10 UK Hotels Gross Revenues Hilton Group Capital User Consortium LLP Capital Provider Bank Property Developer Hotel Specialist % % % % %

15. Investment in a Capital Partnership framework Capital Partnership Investors Customers Custodian % % £ 16/06/10 Managers

16. Equity Share Units- % age shares in revenues or production... 16/06/10

17. Redeemable Units - redeemable in payment for production 16/06/10

18. Example: “The Art of Flirting” – a film incorporated as an LLP 16/06/10

19. The actors received “nth’s” of the gross revenues... 16/06/10

20. I got 5%...and the producer the rest... 16/06/10

21. ...except that we needed lights, cameras, pizza, coffee...... 16/06/10

22. Two Capital Partners invested £10k for 20% of revenues.... 16/06/10

23. ...if there are any 16/06/10

24. Art of Flirting LLP Art of Flirting Partnership Financial Capital (Investors) Viewers Custodian % % £ 16/06/10 Human Capital (Actors, Producer, Me)

25. Everyone was on the same side 16/06/10

26. Example: Albion Trust...an Edinburgh charity 16/06/10

27. ..which provides affordable office space for social enterprises 16/06/10

28. ...due to demand they bought a disused church next door 16/06/10

29. ...and planned a £4m development 16/06/10

30. But if they borrow, the rents will be unaffordable 16/06/10

31. NET's proposal - an Albion Partnership Albion Partnership Investors Occupiers Custodian % % £ 16/06/10 Managers

32. Let’s see how a St Margaret's Partnership might work 16/06/10

33. St Margaret's Partnership St Margaret's Partnership LLP Investor Parents Custodian % % Fees 16/06/10 Manager

34. School assets and business will be owned by the charity as custodian School Assets Custodian 16/06/10

35. Insolvent charity's creditors are current (unwilling) investors School Assets Charity Custodian Asset Value 16/06/10

36. New Investors: parents, staff, alumni, 'friends' buy Equity Share Units School Assets New Investors Custodian Investment in Units 16/06/10

37. Staff and Administrators become a Manager - possibly as a Co-operative School Assets New Investors Manager Custodian Financial Capital Human Capital 16/06/10

38. Outcome: Capital Partnership School Assets Investors Parents Custodian % % Fees 16/06/10 Managers

39. What is the proposition for Unit Investors? 16/06/10

40. Investors receive a proportional share in St Margarets' Gross revenues 16/06/10

41. Set at an initial 'Capital Rental' rate of (say) 3% ? 16/06/10

42. But this is not a fixed rate 16/06/10

43. It will rise and fall with St Margaret's gross Revenues 16/06/10

44. St Margaret's Partnership is not an Organisation 16/06/10

45. It does not own anything, do anything, employ anyone, or contract with anyone 16/06/10

46. It is simply a framework within which the stakeholders self organise... 16/06/10

47. ...to create St Margaret's Equity 16/06/10

48. Thank You 16/06/10