Bob O’Connor, managing director of Port Lympne Reserve and Howletts Wild Animal Park explains why the charity set up a glamping project and how finance was so crucial to its development.
Explain what your charity does in one sentence. We are two wild animals parks that specialise in breeding rare and endangered species and returning them to the wild.
We do what we do because…There are hundreds of species that could be extinct in the next 20 years and we want to try to slow that process.
We turned to CAF when…We created our ‘glamping’ experience, Elephant Lodge. For conservation to be successful it needs to be self-funding, and we realised there was a big market for luxury camping holidays. We wanted a bank loan – rather than relying on grants, donations or existing reserves. So in 2012, we went out to the marketplace. It was the first time we hadn’t funded something ourselves.
How did they help? CAF Bank loaned us the majority of the money: we put up £100,000, and they added £300,000.
What has CAF Bank’s support enabled you to do? To build Phase 1 of Elephant Lodge – 13 tents, a restaurant and play area. From being purely a day attraction, that helped turn us into a short break destination. Previously [our] customers typically lived within a 90-minute drive, but we now have a UK-wide appeal because people can stay here. Today, the short stay [business] represents about 25% of our total turnover.
What can charities learn from the private sector about finance? They need to be aware of what’s happening in the marketplace and can’t be afraid to be entrepreneurial. My background was very blue chip, and coming into a charity initially felt more staid and conservative. But like anything, when you try something and you’re successful, that gives people confidence. And each time it gets easier.
And what can they teach them? When we want to do something new, I have to write a business plan and get the trustees to approve it. We have around 19,000 people who regularly give us funds – and I’m very conscious that I could be brought to book by the Charity Commission if I was reckless with donors’ money. That’s like an extra set of governance, or an additional conscience. I double-check everything I do, perhaps in a way I wouldn’t have done when I was in the private sector.
How have you responded to new trends in charity fundraising? We were pioneers in the face-to-face and door-to-door sectors, and more recently we’ve moved into testing things like crowdfunding. We’re constantly looking for new [developments], but we always want to ensure we’ll get a good return. So we test the market, and test it again before we invest.
How do you want to see your charity change in the next five years? Commercially, we’ll concentrate on developing the short break business. We have already created Pinewood (a group of 10 luxury camping pods) and are currently building our treehouse hotel.
One of the charities I admire most is…Help for Heroes. What they’ve done – from a standing start – is an outstanding example of success, which any commercial business would be proud of.
The biggest challenge facing us right now is… Costs, which never stop rising. It’s an uncertain world, and I worry about being able to raise sufficient funds to continue with our groundbreaking work.
We know we’re getting it right when…I don’t think I’ll ever sit back and say, “We’ve got it right: that’s the formula!” We always strive to do better. I think you’ve constantly got to look at what you’re doing – and move forward.
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If, like Howletts, you are considering loan finance to continue your charity’s mission, call our charity loan experts now for a free consultation on 03000 123 444 or visit our website.
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