Key Dates at a glance
10 April – Fund Launch
Warm up events:
11 April - Matthews Yard, Croydon - Register here.
12 April - The Library at Willesden Green, Brent - Register here.
13 April - Angel Community Centre, Enfield - Register here.
18 April - Stonegrove Community Trust, Barnet - Register here.
19 April - St. Laurence Centre Catford, Lewisham - Register here.
20 April - Hackney Empire, Hackney - Register here.
25 April - Chiswick Town Hall, Hounslow - Register here.
26 April - Old Kent Road Studios, Southwark - Register here.
27 April - Osmani Centre, Tower Hamlets - Register here.
2 May - The Centre Banqueting, Southall, Ealing - Register here.
09 May – Workshop: Project Review (Expert Advice for your idea) – Register here
22 May – Workshop: How to run a crowdfunding campaign – Register here
05 June – Deadline to submit project for Verification on Spacehive & Pitch to our Fund
*(you should create a project and pitch to our fund as soon as possible to find out what is required, then refine your idea before ratifying by 5th June)*
19 June – Deadline for crowdfunding campaign to have started
10 July – GLA / Spacehive will assess crowdfunding campaigns
20 July – Mayoral Pledges announced on or before 20th July
25 July – Pitch and Pledge event (for projects receiving a pledge from the Mayor – a chance to pitch to an audience of potential backers)
21 August – Earliest date for crowdfunding campaigns to end – do not set your campaign to end before this date.
25 September – Latest date for crowdfunding campaigns to end
September – Celebration Event for successful campaigns
What is Civic Crowdfunding?
Crowdfunding allows anyone to propose an idea and make an open, public call for people to come together to fund it. The Mayor’s partnership with Spacehive - the world’s first crowdfunding website dedicated to civic projects – means community organisations have the chance to pitch an idea that benefits their local community and attract financial pledges from other Londoners and the Mayor.
Civic Crowdfunding is about more than just money. It’s a collective effort by people who network and pool resources. They invest skills and time together to make projects happen in their community. Backers might be local residents, local businesses, or even local government. They can pledge as much or as little as they choose, and only have to pay if the project reaches its target. If enough people like an idea and pledge a small amount of money, funds can grow quickly. With the Mayor’s support at an early stage, civic crowdfunding can help innovative local ideas get off the ground.
Crowdfunding campaigns can require a lot of time, energy and enthusiasm to run successfully. However, the reward for making your idea happen, and attracting the support of everyone from local people and businesses to big brands and the Mayor, can be huge.
Are there any fees to use Spacehive?
It does not cost anything to register your project or make donations on Spacehive.
However, Spacehive does charge projects some fees but only if they successfully reach their fundraising target. All fees are included within the project budget and clearly displayed.
There is an admin fee of 5% of the total project cost that pays for web site maintenance and for independent experts vetting projects.
Then there are transaction fees charged to projects by the secure payment systems that Spacehive uses - PayPal and GoCardless. Transaction fees are estimated on a ‘worst case scenario’ - all funders use the more expensive payment system (PayPal) and all funders make pledges of £20 (attracts the highest fee rate of 3.4% + 20 pence per pledge). In reality the funding scenario is more favourable with many funders using Go Cardless and pledging higher amounts which can bring the fee down to 1.4%.
No transaction fees will be charged for cash or in-kind contributions secured by projects before the start of their online campaign on Spacehive.
Can I raise more than my project's goal?
No. You can only raise as much money as you originally ask for.
What kind of permissions will I need?
This depends on the project, but you need to find out. In the first instance you need an in-principle consent from the landowner to support the project. Various planning permissions and licenses may be required and could be secured as the project progresses, but you need to be clear in your pitch that these will need to be resolved.
How much detail should I put in my project budget?
As much as possible. This will give clarity to your funders and help you plan. You should aim to split your budget into capital and revenue items where possible.
The Mayor will be looking for specific items in your budget to fund as we will largely have capital funding available.
You should aim to get three quotes for large items or services and check the cost of smaller items with reputable suppliers. This is to ensure value for money and a realistic budget.
You need to think about VAT – often not included on quotes, but you will probably have to pay this in the first place even if you are registered to claim it back later. If you are registered to claim back VAT, City Hall will not pay VAT with our pledge and you will need to cash-flow this appropriately.
You should plan some contingency into your budget for unforeseen extras / issues. This should be between about 5-10% revenue depending on the project.
Most of City Hall’s money is for capital expenditure. This means that we will be looking for clear capital elements of the budget when considering our pledge. If your project is revenue based, that should not put you off, but be aware that you will be in strong competition for this. A project with a blend of elements is more likely to receive a pledge.
Remember, all of your crowdfunding pledges will act as flexible revenue cash which can be used to support anything in your budget.
What do you mean by capital and revenue expenditure?
Capital refers to funds used to build, refurbish or fit out indoor and/or outdoor structures or spaces. This can include:
- Construction materials, labour, tools and safety equipment
- Fees for architects or designers
- Bought equipment such as computers, staging or kitchen equipment
- Utilities costs relating to building or creating the project
- Licenses related to building the project
- Skip hire and waste removal
Revenue refers to funds that can largely be used for anything, but typically it describes funds for programmes of activity or day-to-day costs.
This can include:
- Rent and business rates
- Event costs such as hire of stages, sound equipment or entertainment
- Marketing materials such as posters and leaflets
- Website or social media costs
- Utilities costs related to running the project
- Consumables for running the project, such as stationary, raw materials for food and drink
- Maintenance costs
If my campaign is successful, how will I receive my pledges?
If your campaign is successful, most of your pledges from the crowd will be transferred in the week or so after the date that you hit your target.
If you received and accepted a pledge from the Mayor, you will need to claim this from City Hall upon delivery of your project milestones. This means that you will need to manage a cash flow, purchasing goods and services with your other pledges, keeping the receipts and claiming back from the cost from City Hall to allow you to continue with later elements in the project.
In some cases a group may not be able to cashflow a project effectively (such as a significant item that needs purchasing up front, without existing funds held by the group). In exceptional circumstances we can look for a solution, and you can flag this when applying to match to our Movement fund.
How do I plan my cashflow?
You need to think about splitting your project down into milestones (distinct deliverable tasks that would proceed in order) and mapping your budget and spend to these activities. This will help you to plan a strong project with the best chance of success.
You should keep records of all of your spend and any receipts related to the project as you will need to show evidence to City Hall to receive your pledge. Your pledge from City Hall can be claimed in stages linked to your milestones.
Do I need to report on progress?
Yes. In general, it is good practice to keep all of your supporters updated as you progress. They will want to know how you are getting on and celebrate in the success. If you are having difficulty, the crowd may also be able to help you out. The Regeneration team will expect to see regular progress updates in a way that suits each project and we would expect you to record all of your achievements. This will be useful in the future (when you might be applying for other sources of funding) to demonstrate that you can deliver a project and that it has had impact
Once our project has been delivered, do we have to do anything?
One the project has been delivered you will be required to fill out a simple evaluation of your project at the end which shows how you have delivered against your initial ambition, any challenges or issues you faced along the way, and lessons you learned as part of the overall experience.