Handcrafted Projects aims to empower those who have been disadvantaged or faced social exclusion due to crime, alcohol or substance abuse, poor mental or physical health, unemployment, or having experienced abuse or been in the care system. They work with individuals to help them make positive steps to turn their lives around, be part of a community and start to give back.
Key Fund came and met with us, talked with us, and got to understand the organisation and our needs. They took the time to understand our model and our approach and were able to work with us where banks normally wouldn’t. We don’t have a for-profit business model that a bank could easily understand, but a social investor like Key Fund can get behind it.
Challenge
Handcrafted Projects focuses on helping those affected by domestic abuse, prison leavers, young asylum seekers, and care leavers. The North-East continues to have one of the highest levels of disadvantage and deprivation. The 2021 census found that 54.6% of homes in the region are in deprived areas in at least one of the four dimensions of employment, education, health, and housing.
This is having a tangible impact on people’s wellbeing with a ‘healthy life expectancy’ of 59 years in the North-East compared to 65.5 years in the South-East, and two-fifths of children living in poverty.
Local communities often lack facilities and resources, and local people have less confidence and opportunities. Despite their best efforts, these young people find themselves without the guidance or resources they need to thrive as adults.
Solution
The Key Fund’s investment was crucial in helping Handcrafted Projects address a pressing need for more housing and support for vulnerable individuals. Before the investment, they had four hubs connected to around 20 houses each, with around 60 people engaged daily across these hubs.
The social investment enabled them to purchase two new buildings, facilitating the launch of a fifth hub in Sunderland. Now, with 70 houses and plans to expand to 100 across five hubs, this growth is helping even more people find safe housing and comprehensive support.
If I hadn’t gotten this place, I’d have been back on the streets. Literally from turning 18, you get nowt… So, if Handcrafted wasn’t there, I’d probably be living under a bridge…I’m going back to college hopefully to study health and social care. I want to make a difference to people’s lives.
Revenue
Financially, it brings in revenue from various sources: housing benefits, rental income, adult learning contracts, grant income and trading; last year its turnover was £1.2m.
They have 30 staff, 22 full-time equivalent. They have grown relatively rapidly in the last couple of years, and they believe their low turnover of staff is due to their organisation being very values-driven, resulting in a committed staff team.
The repayable finance also unlocked additional income through refugee-led housing, meaning that as well as growing and scaling impact, they were able to make a profit through the services they provided, demonstrating clear financial sustainability and resilience.
Impact
By increasing the number of homes, more people at risk of homelessness, abuse, and social isolation will have access to safe housing and the holistic support they need to rebuild their lives.
This will not only provide stability for individuals but also reduce the strain on social services by addressing issues such as mental health, addiction, and unemployment at the root.
The project’s approach empowers people to gain the skills and confidence they need to re-enter society, creating stronger, more resilient communities.
I was delighted to support Handcrafted acquire 2 further properties, to house and support those who are disadvantaged and face the risk of homelessness. I had the pleasure of joining the team and meeting their residents at the Christmas meal. To hear how the holistic wraparound support empowered people to change their lives and be part of their community was an absolute privilege.