Another way of supporting the work of the Addington Fund is to allow us ‘the use of your money’. Concerns for the future and legal obligations often make an outright donation impractical, but monies could be accessed in the form of a loan. Inheritance planning might mean that funds intended for grand-children in 20 years’ time could be used for charitable purposes in the interim period.
The Addington Fund has a business plan which aims to generate sufficient income from its own resources through rent and returns on investments, to cover all day to day running costs. We feel this is the most respectful way in which we can use all general donations we receive, by ensuring they directly benefit the families they are intended for, either through a hardship grant or the provision of appropriate housing.
Our business model gives us a vital element of sustainability, which we must have, as we make long-term undertakings to many families to provide accommodation. It also puts us in a position to look at other ways of funding our housing work which are not appropriate for many other charities. Within the Addington Fund Strategic Rural Housing Scheme, a revolving portfolio of open-market properties has the flexibility to accept loans under varying conditions.
Currently, we have two major loans. In 2007 ago the Jersey Cattle Society of the United Kingdom wanted to invest in property, and a loan to Addington amounting to £542,000, finances three open-market properties which house Addington tenants. In 2013 the Cornwall NFU Company Ltd disposed of Agriculture House in Truro and the receipts are invested with Addington to purchase housing for farming families in Cornwall.
Two private supporters are offering to finance and part-finance the purchase of individual properties which Addington will use for housing farming families wishing to retire.
Loan terms are tailored with a combination of taking a percentage of the rental income in lieu of interest and a percentage of capital uplift when the properties are sold. Addington takes full responsibility for the management of the property. Timing can be for a set number of years or could be linked to the lifetime of a tenant/ beneficiary. For larger sums, a phased withdrawal helps the Fund’s cash flow. A suite of legal documents cover a loan agreement; a legal charge and an overage deed.
There is also the opportunity for individual farming families looking to exit or retire to invest with us through a shared equity agreement with Addington. We encounter many families who have planned and saved for their retirement but could not foresee the rise in house prices we have experienced over the last two decades. Through a Declaration of Trust, our shared equity arrangements may be a route to solving the problem of finding a secure home for the future.
In an era of low interest rates, it may be the time that you feel able to help the Addington Fund. Please contact us if you would like to discuss this matter further.