Our Finances

Overview of Our Financial Structure

Since our inception in 2019, FACLT has adhered to a set of rules provided by the FCA. Our Rules Document contains important information regarding membership, objectives, directors, meetings, and more. At our Annual General Meetings (AGMs), typically held in the autumn, members appoint our board of directors. We present reports on our work and finances, allowing members to hold the board accountable for the Trust’s activities.

FACLT is required to submit an annual return to the FCA, which includes updates on our members and directors, as well as our annual accounts. These accounts are prepared by our treasurer, approved by the board, and made available to members upon request at info@fromeareaclt.org. We maintain up-to-date records of our income and expenditure, which the Treasurer presents at our monthly board meetings.

Sources of Funding

Our business model focuses on creating projects that provide affordable homes in Frome. Once completed and occupied, these projects generate income through small ground rents. For instance, a mature Community Land Trust (CLT) with several completed homes may earn a few hundred pounds annually, while larger developments, such as the Mayday plans for Saxonvale, could yield significant income. Mature CLTs can apply to become Registered Providers of housing, responsible for the whole development process, although the complexity and cost is such that very few do this. 

During our initial years, FACLT has relied on three primary sources of funding:

1. Share subscriptions from members
2. Donations
3. Grants

Breakdown of Expenditures

Our expenditures are categorised into three main areas:

1. Core Administrative Costs: Approximately £1,000 per year, covering liability insurance, subscriptions to the National CLT Network, director training, Zoom sessions, and general administration.
2. Community Engagement and Communications: Essential for building community connections, this typically costs between £3,000 and £5,000 annually. This includes maintaining our website, newsletters, meetings, and social media presence.
3. Project Costs: These vary greatly based on the project scope. Smaller initiatives, like housing need surveys, may cost a few thousand pounds, while larger projects can involve significant expenses. Collaborating with developers allows us to secure substantial grants, further supporting our mission to create genuinely affordable homes.

Grant Funding and Partnerships

FACLT has received various grants from government-funded agencies and Frome Town Council, reported in our annual accounts. Notable grants include one from Homes England via the Community Housing Fund in 2019 and funds from Resonance and Social Investment Business Ltd for preliminary work on the Mayday Saxonvale project.

Grant providers require detailed reports on the projects they fund, establishing clear guidelines for expenditure, which may not always cover our operational costs. These grants are crucial for community-based organisations like ours, fostering partnerships with developers for suitable projects.

Engaging with Housing Development

Navigating housing project development can be challenging for our volunteer board members. To address this, we collaborate with Middlemarch Associates for expert advice on development matters. Their fees are usually included in our grant applications and project costs.

We cannot become involved with substantial projects, such as Saxonvale, without securing funding for the costs of our participation through grants or loans. However, our operational and community engagement efforts must continue regardless of project status. We actively seek grants for these costs, but in a competitive funding environment, donations and member subscriptions play a vital role in sustaining our activities.

Shareholders’ Funds and Member Support

As a Community Benefit Society, each shareholder has one vote, regardless of the number of shares held. Shares, valued at £1 each, earn interest only if the board decides the Trust’s finances allow it. Withdrawals require board approval, which is unlikely to be given until we have sufficient income from mature projects to cover such requests.

We appreciate that our shareholders support FACLT’s goals rather than seeking immediate financial returns. These funds, unrestricted by grants, are crucial for our ongoing operations, community engagement, and social media presence—especially vital when grant funding is scarce.

Support Us: We invite you to consider becoming a member or increasing your share subscription to help us achieve our objectives. Your involvement is essential for ensuring the continued success of our community-led initiatives. If you would like to increase your number of shares please contact us.

Get Involved!

If you have questions about our financial structure or want to learn more about how you can contribute to FACLT’s mission, please contact us at info@fromeareaclt.org.

Thank you for your support!

Tim Cutting


FACLT Treasurer


October 2024