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Stewart Thompson, Chair of Trustees at Community 360, and Cristina Huddleston, Interim Chief Executive of Community 360, gave a presentation to provide an update on the work being done at Community 360 [C360], and the ongoing changes that had been made.
The Chair presented apologies from C360 for disappointing its staff, partners and the public. The background to the current situation was given, with a timeline of key events and work done stemming from concerns being raised, in February 2024, about a loan made by the charity to its then-Chief Executive, for building works to be done at her home that were stated to have been to provide additional storage space for C360’s assets.
The charity’s initial response was described as one of surprise, hurt at the accusations made, and defensiveness. The Chair of Trustees told the Panel that there had been a hope at the time that the issue would go away, but as time progressed there was increased interest in the matter, with difficult questions being asked. Most of the trustees left the organisation, seeing a loss of experience, and new ones were then appointed. The Chief Executive and Chair of Trustees at the time both left the charity. A range of very different trustees were recruited, changing the Board’s profile to have a third each of trustees from private, public and charitable sectors.
The charity adopted an approach of contrition and humility, and of seeking to rebuild trust with peers and the public.
The conclusions from the Charity Commission’s report on its investigation were gone through. C360 had invited a senior governance expert to work with the charity to improve its governance and processes. The charity had taken on all of the Charity Commission’s recommendations and the Board had been tasked with rewriting the full slate of the charity’s governance documents. Work was then carried out with partners such as the Council and NHS stakeholders to rebuild trust. The Chair of Trustees emphasised that the criticisms of C360 related to the approach of the Board of Trustees that had been in place at the time, and that there was no blame aimed at the staff members who delivered the charity’s services. The staff worked well, and the fault was described as being at the Board level.
In 2024 the Charity Commission had informed C360 that it would be lodging an official warning, that would be delayed until 2025. C360 had told the Commission that any further delays would force the charity to close, due to the extreme difficulty in operating without the Commission’s findings being available for partners to see. Following this, and assurances being provided, the Charity Commission decided not to issue an official warning notice. This was, in part, because all but one of the original trustees had been replaced, and in light of the work done to improve the organisation’s governance, and to address the Commission’s concerns, and the improved training provided to trustees. The loan at the heart of the issue had also been repaid in full by the former Chief Executive.
The Chair of Trustees laid out the recruitment process used to appoint the current Interim Chief Executive and underlined that the charity was now in a much different position.
The Interim Chief Executive went through the timeline of work done, and the order of set out for addressing priorities. The deficit in the charity’s finances had necessitated examination of spending; both of levels and areas of spend. Staffing was addressed, and moves taken to remove officers where necessary, and bring forward those who had ideas and ability to assist in the renewing of C360. A more democratic approach was introduced as to how business was conducted, and a Special Advisory Board was established to provide oversight of decision making. An Investment Committee was formed to ensure C360 had the right partnerships, made good investments and that all was done in line with the aims of the charity.
The strengths of collaborative work were emphasised, sharing resources and identifying partner organisations who already provided good services and/or used successful models which could be brought in to help. All of the work was evidence-driven, with input from communities and an eye for where there was a lack of evidence or where community feedback had not been gained. C360 was focused on community sustainability and empowerment, as well as ensuring sustainable investments.
C360’s aims were split into seven parts, with five focused on operational delivery: these were ‘connecting communities’, ‘community roots’, ‘connecting care’, ‘future ready’ and ‘beyond formal education.’ The environmental agenda also formed an important aim, as this would impact everyone, so C360 was engaging with it now.
The Interim Chief Executive explained that a voluntary organisation needed to have an active volunteer base and needed work secondments and placements. Policy and advocacy work had continued, and views had been captured from service users, helping to connect people to necessary resources.
C360’s work often involved the health and wellbeing of some of the most vulnerable in society. Struggles faced included financial and health issues, and cooperation between all active organisations was vital in order to meet challenges. The next generation of people within C360 needed to be introduced, often belonging to the communities served by the charity. The Interim Chief Executive gave the view that C360 had now done enough to merit being given a chance to move forward.
The Interim Chief Executive was working to reduce the budget deficit to a manageable level, aiming to completely clear the deficit by the end of the year. Much of the funding for C360 had been statutory funding, and the charity was seeking to diversify its funding streams, joining with partner organisations. The aim was to move to only around 30-40% of income coming from statutory funding sources by year end.
A Panel member laid out concerns that local residents had shared with them, including questions about the direction of C360. The member’s view was that community needs and demands needed to be identified, leading to the identification of areas right for collaboration in service delivery. The representative of C360 were asked to give more detail on how it considered progressing work to develop young people’s skills.
The Chair of Trustees explained that, in 2024, C360 had not been able to take part in strategic meetings with partners due to the ongoing Charity Commission investigation. C360 was now catching up. The Interim Chief Executive added that, as of January 2025, the charity faced closure by April 2025. 2025 would be a financially challenging one, so she specified her focus on the base programmes that the charity knew it was good at running, such as community transport and prescription collection services. Inroads had been made.
For young people who are not in employment or further education, C360 would replicate and expand on existing models. This could not be done earlier, as the charity had been excluded from necessary meetings over a number of months. The Interim Chief Executive expressed understanding that there was a need for C360 to build trust with others over time, so that partners would see the charity as partners and a credible investor.
A Panel member welcomed the members of C360 staff who had attended to watch the meeting. The collaborative work carried out with other organisations was described as being impressive. The Chair of Trustees was asked how the Council was represented on his board, in order to protect its investments. Details were requested on the funding position, and on how C360 would decide upon future collaborative projects. Tom Taylor, the Council’s Community Enabling Manager, was asked if he was assured that the changes at C360 were working and whether he had confidence in the organisation. The Community Enabling Manager stated that the charity was taking steps in the right direction, building trust and making progress. The Council was looking at grant plans across all areas, and not just those involving C360.
The Interim Chief Executive underlined that the charity’s staff had been key to the achievements made, and that the situation which C360 had found itself in was not a reflection of the grass roots organisations working with it. The additional ‘lines of defence’ within the charity were outlined, with monthly meetings of the Finance and Risk Committee focussing on transparency and accountability. Updates were regularly circulated to staff members. Regarding the programme of investments, the Investment Committee represented teams from across the charity, with a board of special advisors examining business plans and investments. The Chair of Trustees added that meetings had been held every three or four weeks during the past year in order to get the best outcomes for staff and the communities served. There was now more congruence between the Board and staff, with a steep learning curve set to change the organisation’s culture. Ultimate decision-making powers would remain with the Board of Trustees, but this would be augmented by the skills and experience from others, which would enhance decision-making.
A Panel member posited that the holding of a clear and comprehensive Terms of Reference was key and suggested that the Panel should receive a regular report in the future to report back on achievements and to publicise the improvements and successes of the charity. Another Panel member asked how outcomes could be quantified and scrutinised. The Interim Chief Executive explained that a theory of changes had been worked on to agree what the charity’s aims and intended outcomes would be before any bidding or investing was approved. The charity needed to show the enhancement of initiatives and interventions, being mindful of programmes which were already extant. C360 wanted to include the academic sector, to advise on governance matters, social impacts and outcomes of investments. The Chair of Trustees added that funding providers also needed to feed into what the desired outcomes would be, setting out performance measures to show impact and value for money. Universities could help provide resourcing for this. The Community Enabling Manager noted that C360 was a recipient of Voluntary Welfare Grant funding, and this was reported back on.
A number of Panel members praised the charity’s moves to improve and indicated that they would welcome updates on future successes and improvements.
A Panel member asked whether the Scrutiny Panel could receive reporting on all charities or community interest companies [CICs] which were in receipt of Council funding. Lucie Breadman, Strategic Director, suggested that the Community Enabling Manager could share with the Panel his regular monitoring report on all such partners in the charitable sector, covering the organisations that received Council funding. All Panel members indicated that they were content for this to be done.
RESOLVED that the SCRUTINY PANEL requests an information report from Community 360 be provided to Panel members every six months to show progress against their business plan and aims, with a focus, where possible, on Social Value and outcomes.