Rachel Searle, Head of Communities & Impact, Foundation Scotland.

Join Sarah in this episode as she talks to Rachel Searle, from Foundation Scotland, about community benefits. Discover what they are, how they are administered, who has the power to make the decisions, and the significant positive impact they can have on a local community.

Here is an overview of this episode:

INTRODUCTION

As businesses seek ways to benefit society, "Community Benefits" have emerged as a powerful tool. Rachel Searle, Head of Communities at Foundation Scotland, offers valuable insights into this complex topic.

UNDERSTANDING COMMUNITY BENEFITS

Community benefits are annual payments made by renewable energy projects to local communities where they operate. These funds aim to create social value, fostering community development and addressing social issues. Payments are typically £5,000 per megawatt of installed capacity per year.

TRANSFORMATIVE POTENTIAL

Community benefits have enabled communities to:

• Secure vital assets (shops, community centres, affordable housing)

• Provide essential services

• Address challenges like fuel poverty and food insecurity

• Support outreach programmes

EMPOWERING COMMUNITIES

Unlike traditional philanthropy, community benefits put decision-making power in the hands of local communities. This approach:

• Fosters ownership and agency

• Nurtures local leadership

• Supports the emergence of community anchor organisations

NAVIGATING CHALLENGES

Rachel Searle acknowledges concerns about transparency and accountability. Foundation Scotland helps communities establish robust governance structures and decision-making processes to mitigate these risks.

EXPANDING REACH

To address unequal distribution, Rachel advocates for community-led solutions like regional or national community wealth funds.

FOSTERING PARTNERSHIPS FOR COMMUNITY BENEFIT

As the renewable energy sector grows, strong partnerships between developers, asset owners, and communities are essential. Key strategies for successful collaboration include:

• Offering upfront construction funds to kickstart community projects

• Regularly reassessing benefit areas to ensure fair distribution

• Involving communities early in the planning process to enhance engagement

“We now support over 100 of these community benefit funds across Scotland, which is about a third of community benefit money coming into Scotland's communities from renewables projects.” - Rachel Searle

CHARITABLE STATUS AND ACCOUNTABILITY

Foundation Scotland's charitable status ensures funds are used for public good and charitable purposes. This allows for flexibility in supporting initiatives that sustain remote communities.

DEVELOPING SKILLS AND SHARING KNOWLEDGE

Foundation Scotland emphasises:

• Workshops and toolkits

• Networking opportunities

• Peer-to-peer exchanges

BALANCING FLEXIBILITY AND STRUCTURE

While community benefits thrive on local autonomy, a balanced approach is necessary. Foundation Scotland helps develop fund strategies aligned with broader community action plans.

ENGAGING WITH DEVELOPERS AND ASSET OWNERS

Rachel’s tips include:

• Understanding community context

• Exploring flexible payment schedules

• Incorporating review mechanisms

• Ensuring fund longevity through legal agreements

FUTURE OUTLOOK

As the renewable energy sector grows, community benefits could rival major funders like the National Lottery Community Fund. Addressing inequality and ensuring broader access to these resources will be crucial.

KEY TAKEAWAYS:

1. Community benefits foster community development and address social issues.

2. They empower local communities and nurture leadership.

3. Foundation Scotland ensures accountability and transparency.

4. Expanding reach through community-led solutions is vital.

5. Collaboration among stakeholders maximises benefits.

6. Capacity building and peer learning are essential.

7. Balancing flexibility and strategic planning maximises impact.

8. Engaging with developers and understanding community contexts is crucial.

9. The potential for transformative change is significant but requires addressing inequality.

CONCLUSION

Community benefits are a powerful tool for social value creation and community development. Realising their potential requires understanding nuances, ensuring transparency, and promoting inclusive practices.

At Samtaler, we specialise in stakeholder engagement and social value creation.
Our experts can guide you through the complexities of community benefits, offering tailored solutions for developers, businesses, and community organisations. To find out how we can help send an email to hello@samtaler.co.uk

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