Willow Farrell at FUSE Network on Exploring Traded Income Models

Across the VCSE sector, conversations about money and sustainability are happening all the time, but often quietly. At FUSE Network, our work with the Empowering Communities Partnership has been exploring one part of this in particular – traded income.

For many organisations, this sits in an awkward area. It is something people are curious about but not always ready to fully jump into. I think this is because it feels like a shift in identity. Most founders in our sector did not set out to run a business and language like ‘sales’, ‘pricing’ and ‘profit’ can feel at odds with our values rooted in social purpose. There is often a deeper concern sitting beneath this that generating income might dilute what an organisation is here to do rather than support it.

We want to see a shift from identifying as ‘not for profit’ to ‘profit for purpose’. When it works well, trading does not sit separately from the mission, it literally exists to support it. It isn’t something that distracts you because it becomes a key part of how you’re sustained rather than something running alongside. It can increase stability, reduce reliance on short term funding and give organisations more room to respond to need on their own terms. Plus, when delivered in line with your approach and values, it often adds impact too!

The barriers are still real and it has been great to hear people being very honest about them! Capacity is limited. Boards can be cautious. Confidence and experience vary widely. There are valid questions about reputation, relationships and when it is appropriate for beneficiaries to become customers. In practice this shows up in our day-to-day decisions about what gets prioritised and what gets paused – I think we all have a drafts folder of ideas for ‘some day’, right?

Alongside that, there is something else that comes up more subtly: discomfort. Talking about money, putting prices up, asking for the real cost of delivery, charging for something that might have been free to use in the past, is hard. In a system shaped by grant funding and constant pressure to stretch resources, trading and selling can feel like a big cultural shift.

I don’t think there is a neat, linear or one-size-fits-all process (sorry!). It is messy, it takes trial and error and needs space to think things through, reflect and learn.

It’s becoming clear that this isn’t only about organisations selling services. It’s also about how we support each other within the sector. We need to choose to buy from each other where we can to build a strong ecosystem, keep wealth in our sector and see each other succeed.

I hope that what comes across is that this isn’t about becoming something different, just building on and repackaging what already exists in ways that feel realistic and right for you. As we navigate ongoing uncertainty in both Norfolk and the wider world, these conversations can’t remain quiet – we will need to get louder to change how we plan, make decisions and sustain our work.

We want to thank everyone who has been part of these conversations so far. The openness, honest reflections, vulnerability and willingness to stay with the complexity rather than rush past it has been amazing.

We still have lots of questions that we are continuing to sit with and plenty we haven’t started on yet! We’d love to hear your questions and answers. What would make this feel more possible for you? Where have you already had small moments of trading success, even if you didn’t call it that at the time? How do we build support that feels useful in practice, not just in principle?

If you’d like to continue this conversation, share your questions, answers or thoughts and join events exploring this topic please get in touch with the FUSE Network team on hello@fusenetwork.org.uk or visit www.fusenetwork.org.uk.

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