Interview with Tony Ford, founder of the Ford Family Foundation

1. Why did you and your family set up the Ford Family Foundation? What does it do?

As a family we have been very fortunate in being able to set up some significant businesses and have had some successful exit events. We believe in sharing our wealth and wish to do so in a structured way and one which will allow our donations and our Foundation to grow well beyond our family’s lifetime.

The Foundation has been set up with the principle aim of investing in not-for-profit companies which will:

• Employ staff
• Are capable of growth
• Are sustainable
• Help or employ those in need and/or those less well off in our society or live in deprived areas
• Make a difference

Ideally, we would like to invest a minimum four per annum of ￡100,000 and ideally ￡200,000 in each not for profit company and would look to make up to four investments at this level over the next five years in up to 20 such businesses.

In addition, the Foundation will make smaller donations to worthwhile charities and in 2022 the Foundation or our family have made a ￡100,000 donation to a cancer hospice as well as a sizeable donation to a children’s charity focussing on respite care.

2. What about NFP businesses and CICs makes you want to focus your support there, rather than traditional charities? What or who inspired you to take this approach?

About 15 years ago I tried to set up a fund to invest in entrepreneurs from deprived areas or backgrounds. I raised ￡80,000, half of which was my own, to make several investments.

The issue I encountered was trying to find entrepreneurs from these areas or backgrounds and many of the applicants were degree students from affluent backgrounds and did not meet my criteria.

I was about to give up when a middle-aged lady arrived in my office pushing her teenage son in a wheelchair. She told me of her inherited disease which had bypassed her but had affected her mother and son both of whom are in wheelchairs and that she had spent her entire life as an adult and child caring for either her mother and/or son and she had never been able to go on holiday as a result.

Her business idea was to employ people to provide respite care to the disabled person allowing the adult or child time off to take a holiday. I gave her our ￡80,000 to set it up, we mentored her and provided support.

One year later the business was employing 16 full time staff and was looking after more than 2,000 families per annum. This was inspirational to me, and I promised that when I was able to afford it, I would look to set up a Foundation of size to do the same for 10 or 20 similar not-for profit businesses and at the same time help them by providing the back-office services and to offer them mentoring skills as I had done for her.

3. The Foundation provides both grants and loans: what are the benefits to this mixed funding approach?

The mixed funding has the following benefits:

First, we want each not-for-profit company to generate profit, to be self-sustaining, and not be reliant grants or donations.

Therefore, with our help and guidance they should ultimately be able to repay our Foundation, typically 30% of profits, allowing us to re-invest in other not-for-profit companies.

If the not-for-profit does not make a profit it is not required to make any payment to the Foundation and therefore it is not a loan in the strictest sense.

Secondly, there is no requirement to repay the Foundation but it will have the option to do so after which time the profit share element will cease.

Some not-for-profit companies do convert to for-profit and in these circumstances the Foundation will receive a 30% equity stake to ensure that all interests are aligned.

4. You also provide far more support than finance. Would you have done that anyway, or do you see access to high quality administration services and skills a common challenge that holds back many NFP businesses? Is this approach also designed to help you increase the scale of your support?

Doing this significantly increases the value of our support. It also means that we are actively involved with these businesses in a hands-on way. It is not just a matter of giving money as anyone can do that, and by doing it this way it shows we really care.

As an entrepreneur who has advised many businesses, as well as setting up and running several successful ones, we are able to offer these businesses and their founders mentoring which will be invaluable to them in growing their businesses. The quicker they grow, the more people they employ, the bigger the impact they will have in their chosen field and the greater the impact of our Foundation.

5. Tell us about the first two businesses that you have identified for support. How many other organisations do you plan to support?

1. Our first business is our very own NFP - Furniture for Social Housing. Our aim is to support over one thousand previously homeless families over the next few years and have identified a real need help assist with furniture and white goods to individuals and families who have recently been given accommodation.

The company will assist families with an immediate requirement to buy white goods and furniture from our range single items and packages where they will be able to access these necessary goods via a website with manageable payment plans that will suit their financial circumstances. These goods will also be partly funded by government grants, local authorities and charitable funding within each location or local council.

Furniture for Social Housing aims to improve the lives of impoverished families with affordable solutions tailored to make furnishing their property both achievable and simple.

2. Our second business is Bounceback Food CIC. We identified this incredibly interesting business while attending an event at the Masood Entrepreneurship centre within Manchester University.

Bounceback are fighting food poverty on multiple fronts by providing much needed hot nutritious meals for vulnerable people and also run a variety of cooking and employment support programs that will enable people achieve accredited skills to gain employment in the catering and food industry.

Since 2014 they have supported and taught more than 3000 people including... young carers, the elderly, stroke survivors, and all food bank beneficiaries. We are excited to help grow and mentor the company over the coming months and years.

6. Your selection criteria and due diligence activities are refreshingly concise. Explain the thinking behind that approach.

All the trustees have a background in corporate finance and with a specialism of buying, selling and mentoring businesses selection and due diligence is second nature.

The investment criteria is very strict and as a result not all not-for-profit companies will comply but for those that do the due diligence will be very simple and will focus on:

• The people - to confirm they are likeminded and have our values
• The purpose - to ensure they are looking to change peoples lives for the better
• The ambition - to back growing businesses which will make a difference
• The business plan - to be certain that the business is viable and sustainable

7. Is the Ford Family Foundation accepting applications or enquiries about support? If so, how and by when?

We are accepting a limited number of applications as we plan to invest in only four businesses per annum.

Contact: [email protected] and 07776 841566.

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