Raising Funds
Funding will be needed in three distinct stages of the asset transfer process – and it is likely that funding will be received in these three distinct stages rather than one source of funding covering more than one stage.
Funding stages are:
- Professional fees (eg surveyor or lawyer to change the governing document)
- Costs for the development of the feasibility study and/or business plan
- Costs of training for the management committee
- Building and construction work
- Professional fees (eg architect)
- Furniture and equipment
- VAT
- Contingency
- Finance costs (eg interest on loans / fundraising costs)
The set-up costs
Funding to cover the process of exploring and organising the asset transfer – including:
Building costs
If any building work or refurbishment work is needed, this will need to be funded at this stage. These are known as capital costs. Even if the building or land is ready to move into, there may be moving costs and/or the costs of stocking up with sports equipment and so on.
The costs of building and refurbishment will include:
Running costs
The on-going costs of running the facility.