Oban’s Rockfield Centre has launched a £50,000 crowdfunding campaign “to keep the doors open”.
Oban Communities Trust (OCT), which runs the community-owned cultural hub in the old Rockfield Primary School, has called for volunteers and “debt forgiveness” amid a “serious and severe financial challenge”, which could shut the multi-million pound project if support is not forthcoming.
On its JustGiving fundraising page, OCT said: “As an organisation committed to fostering community engagement and cultural enrichment, we find ourselves in a difficult position due to the economic crisis and a lack of anticipated funding for our charitable endeavours.
“The Rockfield Centre, a dream that has thrived on the collective efforts of our community, is currently grappling with financial strains that threaten its sustainability. The economic downturn has impacted our ability to secure the necessary funds to maintain the vibrant programs and services that have become synonymous with the Rockfield Centre.
“In these challenging times, we are reaching out to our community and beyond, seeking support to ensure the continued success of the Rockfield dream. We are exploring various avenues to navigate this financial crisis and are actively encouraging individuals, businesses, and organisations to come forward and join hands with us.”
Earlier this week, the OCT’s interim chairperson Richard Wilson told a packed meeting on December 19 that problems surfaced after the Rockfield Centre moved from a building project, financed through major capital grants, loans and shares, to a community project that needed to be financially sustainable.
“A lack of grants for revenue staff funding and increased overheads for the building meant that the income we derived from parking, café, charity shop, leases, and events, was not sufficient, in any way, to cover our expenditure,” Dr Wilson explained.
“Funds earmarked for capital investment had been used to fill this gap. Mistakes were made, controls were not in place. I am confident they are now – and for the future.”
The trust took steps to reduce costs and increase income, including redundancies, reductions in opening hours, and increasing prices from coffee to room hire. “Without them, I doubt we would be trading now,” he said.
To help keep the centre open, the trust is calling for volunteers to run events and the cafe, as well as those with business and financial skills to work on or with the board.
“We need our community investors to work with us through our debt forgiveness campaign if they feel able to do so,” Dr Wilson said. “We hope our creditors can continue to be as patient as they have been. We are committed to paying them the money they are owed.
The trust, he added, also has “a business plan for our future based on realistic financial projections that will give an annual surplus on top of meeting our obligations to bond- and share-holders. It will allow us to meet our financial obligations to all outstanding creditors if you can work with us.
“We are in the process of consolidating a large part of our debt into a single loan – the repayment of which is costed into the financial model as is our obligation to bond and shareholders.”