Annual Report 2009
d Abera ishe man showroom refurb
Maximising opportunities to beneďŹ t the community of Rhondda Cynon Taf, through waste minimisation and social enterprise.
Toogoodtowaste was established in 1995 as a Charity and Company Limited by guarantee; the organisation is committed to revitalising commuties’, developing relationships with other groups and organisations and enhancing local community services.
It has three main objectives: 1. To alleviate the eﬀects of poverty by providing access to aﬀordable items 2. To provide opportunities to volunteer and train to develop work and social skills 3. To reduce waste to landﬁll
Toogoodtowaste CHAIRS’ REPORT This last year has proven to be one of the most challenging and eventful in the memories of most people, from both an economic and social perspective. There is hardly a family across the United Kingdom who has not felt the impact of these changes, and here in the South Wales valleys the eﬀects of the recession have been magniﬁed many times beyond the national average. It is therefore with a great sense of pride and achievement that I can report that toogoodtowaste has continued to grow and expand upon its previous successes by increasing the range of services we provide to the local community and especially to those most in need within it. This is in no small way due to the eﬀorts of the management team, comprising Shaun England (General Manager), Rhian Williams (Finance) and of course Lynda Davies, our CEO. Between them these people have the vision, energy and expertise that are needed to make toogoodtowaste a successful business. However, they cannot accomplish anything by themselves, and they are supported by an engaged and enthusiastic team of staﬀ members, which I was fortunate to see ﬁrst hand when I attended a presentation by all paid staﬀ recently. There is a third element to the success story, and that is the unpaid volunteers, who arrive at toogoodtowaste for a variety of reasons, but leave having experienced teamwork and friendship, and also having gained valuable life skills through the training and support they receive from the permanent staﬀ members, and in some cases even imparting new skills to us – a true working partnership. As always, I have been very ably supported throughout the past year by my fellow board members, whom I would like
to thank for their dedication and continuing contribution of something precious to us all – their own time. It has once again been my privilege to be a small part of this organisation, and I look forward with anticipation to the forthcoming challenges we will face and overcome together as a team in the future.
CEO REPORT Our new facility at Ynyshir continues to grow in popularity with residents of Rhondda Cynon Taf both as a place to buy preowned items but also to bring items into for reuse. In 2009, the impact of the ‘Credit Crunch’ increased the demand for our services, at the same time it decreased donations. We witnessed a big drop in donations of domestic electrical appliances, partly to do with reduced spending but also an eﬀect of the National retail ‘takeback’ scheme for electrical appliances (WEEE regulations). This process continues to restrict the amount of domestic electrical items we are oﬀered and as a result we are unable to meet the needs of our customers. Our aim is to work more closely with our Local Authority, to divert more items from the waste stream into the reuse stream. We also want to help more families in poverty and increase opportunities for work based learning and volunteering for all ages. I was proud to be nominated for the 2009 Cylch Outstanding Contribution Award and thank all my colleagues, friends and partner organisations for their support
Charitable activities Anti poverty – Regeneration – Life long learning – Waste minimisation
GENERAL MANAGER REPORT 2009 saw my ﬁrst full year with the organisation which included three new exciting projects: Ethical house clearance, Carpet tile recycling and an e commerce website. These new projects enabled us to create 2 new paid jobs and increase our partnership working with other organisations. We have also completed the dilapidations work at Ynyshir and improved security at both branches. The whole team helped with the refurbishment of the Aberaman showroom for the beneﬁt of our customers.” In September, thanks to sponsorship from Puma Carpets (stakeholder in the carpet tile recycling project), we all enjoyed a team building day at Alton Towers – a great opportunity for people from diﬀerent departments and branches to interact and have fun together. It was also an important opportunity for us to say ‘thank you’ to staﬀ and volunteers for supporting each other and this organisation so that we can help others.
ANTIPOVERTY We remain committed to helping those most disadvantaged in our community. In 2009 with part funding from BBC Children in Need, we were able to oﬀer furniture start up packages and bedroom packages to disadvantaged children and young people in Rhondda Cynon Taf. Referrals were received from support workers, where no other support was available to help:
“Boy aged 4 years his home is in a poor standard, with only a very basic cot bed... he suﬀers with eczema and bedwetting... he needs a bedroom furniture package to improve his health and wellbeing”
“Mother and 2 year old child moving from temporary refuge accommodation into permanent ﬂat”
“Girl aged 11years and has moved to live with grandmother as her mother has moved away. She is currently sleeping on a mattress and has no bedroom furniture as her original home was repossessed.”
“17 year old girl was homeless then placed in Mountain Ash YMCA, she has been allocated a property but has no furniture or household items and no ﬁnancial means to purchase the items she needs.”
Tackling child poverty within Rhondda Cynon Taf, is a high priority for this organisation – and with 96,000 children in Wales in severe poverty1 we believe that local reuse Charities like toogoodtowaste can help make their lives safer and more comfortable, by improving their living conditions and raising their self esteem. We continue to provide community support and responding in times of crisis. In June 2009 residents on the Glyn Taf Housing Estate suﬀered further ﬂooding. Volunteers and staﬀ from toogoodtowaste worked with the tenants & residents association and housing association to provide essential household items including bedding, furniture and electrical items. 1
New Policy institute – Save the Children Annual Report 2009 02
Regeneration – through Social Enterprise – providing quality services to local people, helping to regenerate communities and creating local wealth.
ETHICAL HOUSE CLEARANCE
Our Charity showrooms are the largest in Rhondda Cynon Taf and provide residents with the opportunity to “buy green and buy local”. The income generated creates local employment; supports volunteering and training and helps tackle local poverty and disadvantage. The number of customers purchasing items increased by 68% in 2009 – a reﬂection of the economic downturn but also recognition that we are providing services that are beating the poverty trap and creating local employment.
Pilot project funded by RCT Economic Development fund, was set up to investigate the impact and beneﬁts of providing an ethical house clearance service. We were able to carry out 60 house clearances. The grant funding created additional employment for a driver/warehouse person; provided various items for reuse and recycling through our Charity shops and enabled us to help four other groups. The Arts Factory were provided with books for their Amazon book project; Valleys Kids were given bikes; Tools for self reliance were provided with sewing machines and tools and Vision Products were given any invalid aids that were donated. An additional income was also generated of £8,730. The pilot funding has been approved until March 2010.
CLEANSTREAM CARPETS Cleanstream Carpet CIC aims to provide the Carpet tile industry with an alternative to throwing away, preowned or end of line tiles. To generate an additional income stream and reduce waste to landﬁll, working in partnership we provided, the storage and sorting of these tiles before they are re sold back through community groups. In 2009 34,000 tiles were diverted from landﬁll and an additional income of £13,900 generated towards our core costs.
ECOMMERCE toogoodtowaste online – Pilot project funded by RCT Economic Development fund, up to September 2009, to trial a ‘buyonline’ website for preowned items. The funding created a new employment opportunity and a new website. During the pilot stage, the number of people accessing the site grew to 3,800 from 35 diﬀerent countries! There was evidence of new customers viewing the site and then visiting and buying from the Charity Shops. However the funding was not continued as the income generated (£2,928) did not demonstrate ﬁnancial sustainability. The website continues to be used as a “shopwindow” but the facility to ‘buyonline’ has been discontinued with the end of employment contract.
Despite the recession – 3 new employment opportunities were created.
Michael Baker & Simon Davies
LIFE LONG LEARNING Through volunteering and workbased learning, we oﬀer local people of all ages, backgrounds and experience a chance to spread their wings and to take on a new challenge whilst making a positive diﬀerence to the lives of others within their community. Tristan Lloyd and Kurt Evans are just two of our younger volunteers, on placement through ITEC Training. Both have been successful in gaining NVQ qualiﬁcations in Customer Services in Retail and believe the practical experience gained in our Charity Shops will assist them in their search for paid employment.
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WASTE MINIMISATION toogoodtowaste is part of the growing number of organisations within the Third Sector within Wales that is playing a major role in making Wales greener – raising awareness of reuse and recycling and reducing the local carbon footprint.
The number of items donated for reuse increased from 8,400(2008) to over 16,500 in 2009 (this was partly due to the new Ethical House Clearance service). However, the number of people donating also increased from 2900 (2008) to 3,560 in (2009).
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Over 16,800 items were selected by customers, compared with 6,846 items in 2008 and in so doing, diverted 216 tonnes from landﬁll – an increase of 38%. Total C02 equivalent savings of 584 tonnes (Carbon Capture Cymru C3 calculate 216 tons x 2.7).
Jackie Williams has Volunteered for toogoodtowaste for 4 ½ years in Customer Services and Call Centre. “Joining toogoodtowaste was the best thing I have done, it got me out of my shell, I have more conﬁdence and it has given me experience of working in an oﬃce. After 26yrs in the caring profession, I felt I needed a new direction. I would recommend volunteering to anyone.” s on ars P l Pau
Annual Report 2009 04
The Changing world of funding for Charities – “Charities have less grants!” (Charity fundraising Ltd.) • • • •
Declining charitable & community funds More lottery funds directed by government Less European money available Growth in number of registered charities
• Greater reliance on Voluntry. Sector for many services • The impact of high proﬁle appeals
In 2007 over 75% of our income came from grants. Most of this was European funding which ended in 2008. To maintain our services, it has been necessary for us to increase own income generation, as well as reduce core costs. As can be seen from the following graph, there has been a steady growth in own income generated through the Charity showrooms and the introduction of new Social Enterprise projects, however, this increase in income has yet to oﬀset the dramatic drop in external funding. Unrestricted reserves have been used over the past two years to bridge the gap between maintaining services and the drop in grants. Further consolidation of services to reduce overheads, as well as further grants, service level agreements, and contracts will be sought.
Despite the introduction of three additional projects and increased turnover, some overhead costs have been reduced from 2008 for example – ICT/Admin & Telephone £12k; The closure of units 7 & 8 in Ferndale helped to reduced premises costs by £13k and £25k on training & volunteer costs (previously grant funded). In 2009, despite a number of attempts to generate additional sales income from the Ferndale branch more customers choose to use the larger Ynyshir branch.
Charity Shops Social Enterprise Grants
Steady income growth from Charity Shops
New social enterprise projects
£600000 £500000 £400000 £300000 £200000 £100000 £0
Sharp decrease in grant funding
Understanding Charity Accounts
MONEY COMES INTO THE CHARITY IN TWO DIFFERENT WAYS From sales – our own income generation How we spend this money is up to the Board, following recommendations from the Management Team.
From grants, contracts, service agreements We can only spend this as agreed with the funder. If we do not spend it, or spend it on the wrong things, they can ask for us to repay it.
This called UNRESTRICTED INCOME
This is called RESTRICTED INCOME
Budget heading Grants Donations Bank interest Service level agreements Charity shops Social Enterprise projects TOTAL INCOME
Value £ 0 1,059 62 20,000 217,099 25,651 £263,781
Value £ 112,460 800 0 0 3,911 0 £117,171
EXPENDITURE IS ALLOCATED AGAINST THE DIFFERENT FUNDS Items bought in for resale 3,168 Staﬃng costs 142,562 Vehicle costs 13,992 Volunteer costs 19,138 Premises Costs (1) 49,937 Admin & Advertising 25,047 Legal & Audit fees 12,446 Depreciation (2) 1,608 Bank Charges 2,079 TOTAL EXPENDITURE £269,979 LOSS (£6,195)
65% 75% 69% 83% 69% 100% 5% 100% 65%
1,240 77,147 4,549 8,510 10,479 11,048 0 33,346 0 £146,319 (£29,148)
35% 25% 31% 17% 31% 95% 35%
TOTAL LOSS FOR 2009 = (£35,343) Notes: 1 – Premises costs – the Ynyshir building is on a 5 year. rent free period as part of the lease agreement with the Local Authority. However, as required by Accounting Standards, an annual rental charge of £18,300 is made. This reserve can be used as match funding to purchase the building or oﬀset against the rental charge for future years. Note 2: Depreciation is charged according to Accounting Standards. The charge of £33,346 is against European funding received in previous years to renovate the Ynyshir building and is oﬀset against brought forward restricted reserves.
Annual Report 2009 06
Volunteers day out to Alton Towers
A BIG THANK YOU TO ALL OUR SUPPORTERS • The 3,560 residents of Rhondda Cynon Taf who donated over 16,000 items of furniture and household goods for reuse, thus diverting 216 tonnes from landﬁll. • The 5057 people who selected over 16,000 items from us for reuse. • 142 Volunteers & placements that worked throughout the organisation, giving their time, loyalty and support in an unpaid capacity so that the community of Rhondda Cynon Taf has a community reuse and recycling facility where low income households and people in crisis can be provided with aﬀordable furniture and household items. • 14 diﬀerent organisations that referred 71 people, who were in ﬁnancial diﬃculties and who we were able to assist by providing furniture and household items and in so doing raise their self esteem; improve their living conditions and avoid further debt and hardship.
• Awards4All Lottery funding – Capital funding to • • • •
• • •
purchase network printer and ICT equipment for Ynyshir branch. BBC Children in Need – Continued grant funding to supply furniture start up packages (1618 years) and children’s bedroom packages (all ages). Lloyds TSB – New grant funding to part fund the employment of a Volunteer coordinator in 2010. Puma – Donation towards Volunteer & staﬀ annual outing RCT Economic Development – Grant funding to cover the costs of two pilot projects (toogoodtowaste online and toogoodtowaste ethical house clearance service). Shaw Trust – Salary costs to employ an Administrator Tudor Trust – Grant funding to contribute towards the cost of employing our General Manager. Vision Products – Funding provided towards staﬀ development under Workstep programme.
OUR NEW NUMBER 01443 680090 email: firstname.lastname@example.org website: www.toogoodtowaste.co.uk Charity No. 1064588 Company Limited by Guarantee No. 3286173 VAT No. 691 9164 02 toogoodtowaste is a trading name of Valleys Furniture Recycling Ltd. Registered in England and Wales No. 3286173 Registered Oﬃce: Unit 1 Standard Industrial Estate, Ynyshir, Rhondda Cynon Taﬀ CF39 0RF