Perfect example of 'Big Society' faces red tape hardships (From The Northern Echo)

Humantics which runs Forum in Darlington faces red tape difficulties

8:30am Saturday 4th February 2012 in News By David Roberts, Chief Reporter (Darlington)

AN organisation hailed by a government minister as a perfect example of the Big Society in action is facing a major funding difficulty because of red tape.

Humantics, the company that runs the Forum Music Centre, in Darlington, has found itself excluded from grants because it is a community-led business – held up as the ideal model by the Government – and not a charity.

Worse still, a fundraising “friends” group has also been told it cannot become a charity because Humantics is a Community Interest Company CIC).

Allison McKay, a director of Humantics, has said that while the Forum is thriving, its plans to develop further are being thwarted by the situation.

The Government office responsible for CICs said Humantics’ situation is not unique.

A CIC is a not-for-profit company, introduced in 2005, designed for social enterprises. CICs are different to normal companies as they must have an asset lock – meaning all assets and profits are turned over for the good of the company and not individuals.

Humantics took over the Forum a little over a year ago, and has been so pioneering that in December it was visited by Nick Hurd, the Minister for the Big Society. He hailed it as an example of the community was working together to provide a public service.

Ms McKay said the Forum has begun several ventures including installing new music rehearsal rooms and equipment.

It is also introducing apprenticeships through the Access to Music scheme, inviting guest speakers from the music industry and holding group tuition with the Yamaha Point school.

However, Ms McKay has said she is struggling to get funding to progress with plans to improve the exterior of the building or extend its services to other locations.

She said: “There’s a bit of a black hole where CICs are concerned.

“We can’t draw on funding for certain things. We’re in a state where we can grow into certain areas, but we can’t access any funding.

“Everything we generate goes to the upkeep.”

A spokeswoman for the Charity Commission said it can only register organisations if their aims are exclusively charitable She added: “Regarding the Friends of the Forum, I understand that it has so far not been able to register, because it is established to financially support the maintenance and operation of a building owned by a local authority and operated by a non-charitable entity and therefore does not further exclusively charitable purposes.

“For these reasons is it does not meet the requirements for charitable status.”

A spokeswoman for the Department for Business, Innovation and Skills said: “The unique opportunity for CICs is that they are commercial companies and can therefore attract investment either privately or from the many social enterprise funds that now exist.”

Darlington MP Jenny Chapman promised to highlight the problems with the appropriate Government minister.