An interview with Adam Outreach Project

“It wasn’t like the ponderous relationship you have with other banks. The people at Charity Bank were much friendlier and forthcoming and much easier to contact.” Read our interview with David Brown, Chair of Adam Outreach Project. 

Why did you need a loan? 

Adam Outreach Project is a Christian homelessness charity. The men start in our Hope House hostel. Once they feel more capable, they move into Grace House until they’re fully able to be self-sufficient and move back into society.  

With the help of Charity Bank, we’re now creating Harmony House. The plan for Harmony is that we’ll have a mixture of people, who will hopefully live in harmony together. Some of those people will be referred to us because they’re homeless. Others will be people who need short-term respite and therapeutic support, for example because they’ve had an emotional breakdown, and whose families are able to pay for them to stay here.  

What made you decide to create Harmony House? 

The need for homelessness support isn’t going away. If anything, it’s increasing. For example, people are being let out of prison early but have nowhere to go. And there’s also an increasing need to support people who have mental health problems.  

The new building is next to Grace House and was owned by the same landlord. It makes financial sense for us to make use of it rather than to open a brand-new site, as the two buildings can now be managed by the same team. However, while we rent Grace House, the landlord wanted to sell the Harmony House property. 

Are there benefits to owning the property rather than renting it? 

Very much so. I’ve been a chartered accountant for 60 years. Property is one of the greatest investments that you can have. Harmony House should be a solid asset.  

And how did you find working with Charity Bank?  

I had an immediate rapport with the people at Charity Bank. They were very helpful and answered any questions we had. It wasn’t like the ponderous relationship you have with other banks. The people at Charity Bank were much friendlier and forthcoming and much easier to contact.  

Daniel from Charity Bank showed a personal interest in what we were doing. He came to see us and spent quality time with us. You just can’t get that face-to-face interaction with other banks. He met some of the residents, and he seemed genuinely excited by the project. 

Were there any challenges to the loans process? 

I hadn’t dealt with loans of this nature for some time. Times have changed, and there seemed an amazing amount of paperwork!  

Is there any way that you could have bought the property without a loan? Could you have fundraised for example? 

Well, we do get gifts in from the public, but it would have taken us a very long time to raise enough money to buy the property. By going to Charity Bank, we’ve been able to launch something that we otherwise couldn’t have done for at least five years.  

Presumably, the money from the private clients you take in for short-term respite will help to fund your other services? 

They will bring some money in, but mainly our aim was to address the need for a place where people can get a break from their normal life and receive support.   

Is there anything that charities should be aware of before taking out a loan? 

The one thing that caught us out was that interest is charged on the loan once it’s set aside for the charity, not just when the money is in your bank account.  

As an accountant, do you think it’s useful for charities to have people with financial acumen on their board before they apply for a loan? 

Yes I do. Sometimes, Christian organisations will have a vision and they want to go straight ahead and realise that vision. They think that God will provide. But God gives different people different skills. Charities need to have the right personnel, the right structure and people with the right experience. They can’t just rely on their vision.  

What’s next for Adam Outreach Project? 

For now, we need to take time to get Harmony House established. Once it is, God will probably tell us that it’s time to get started on our next project! We have 100% occupancy in Hope House and Grace House. That’s allowing us to build up a surplus, which we’ll likely put towards another house.  

We always say to trustees and staff that if anyone has a vision for where the charity should go, then they should share it and we’ll try to make it happen.  

If you need a loan for your organisation, please visit Charity Loans For UK Charities & Social Enterprises – Charity Bank