Asset transfer

Benefits of asset transfer

What are the benefits of community ownership?

The Community Ownership Support Service sets out four factors that community ownership can help deliver, although these can equally be applied to long term leasing arrangements:

1. Deliver Social and Economic Purpose because it:

  • Protects key local services/facilities that may otherwise be lost
  • Provides a physical base for provision of local services
  • Allows generation of income that can be re-invested locally
  • Provides jobs, training and business opportunities
  • Can reverse economic decline of an area and attract investment
  • Enables more intensive use of assets and services when control is closer to the community
  • Allows better stewardship of local assets because the community owns and uses them
  • Allows groups to make major alterations/extend/refurbish

2. Change attitudes and relationships because it:

  • Gives the group credibility with funders and/or other stakeholders
  • Heightens the group’s profile and improves perceptions of it
  • Instils a renewed sense of pride and confidence in the community
  • Provides local people with a meaningful stake in the future development of the place in which they live and/or work
  • Can increase participation through membership, volunteering and attendance at meetings
  • Encourages, through its success, further ideas and activity

3. Move towards financial self-sufficiency because:

  • The organisation can generate income from the asset
  • Ownership avoids rent payments/increases
  • There is an incentive to invest in building to reduce running costs e.g., energy efficiency
  • It creates equity
  • It gives your balance sheet strength

4. Build organisational sustainability through:

  • Independence - control over future of asset allowing you to make long-term plans
  • Leverage, enabling you to negotiate further investment
  • The development of skills and capacity locally that taking on an managing a building encourages
  • Attracting new people with additional skills
  • Building long-term support from the community