Funding gaps

A critical output of the financial model will be the size of the gap between revenues and costs (if there is one) over time.

 

We have identified multiple ways you could fill this ‘gap’, depending on what is causing it and how long it is expected to last. This is summarised in the diagram below:

 

Uses of Funding Sources of Funding
To fund Transition Costs: Costs are greater than revenues in the short term as you transition to a Parks Trust

Social Investors

Grant Funding

To fund New Revenue Opportunities: Basic revenues are insufficient to fund the cost of investing in new growth opportunities which can generate significant revenue in future

Social Investors

Commercial investors

To fund a Sustained ‘Gap’: Core revenues are persistently lower than costs

Endowment

Community Fundraising

For more information about the potential of an endowment, see Funding an endowment.

Community fundraising

A key part of the Parks Trust model is mobilising latent community support for parks. Public engagement is discussed more widely in Building public support, but there are also a number of ways that the community engagement can help support the parks financially through:

 

  • Direct financial contributions, either through use of donations and legacies or through community shares and crowdfunding;
  • Contribution in-kind, through volunteering.

 

Further guidance on fundraising can be found on GOV.UK.