Investor Newsletter. 1,386 HOUSEHOLD MEMBERS LGBT households that are members of New Family Social. They may be single or couples.

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1 PAGE ONE JUNE 2016 Investor Newsletter Strong and happy LGBT About adoptive New Family & foster Social families throughout the UK New Family Social is the only na2onal charity that provides personal and social networks for LGBT adopters and foster carers and their children. NFS IN FIGURES 1,386 HOUSEHOLD MEMBERS LGBT households that are members of New Family Social. They may be single or couples. 2,229 INDIVIDUAL MEMBERS Individual members of NFS. 177 ADOPTION/FOSTERING AGENCY MEMBERS Our income comes mostly from adoption and fostering agencies which provide support for their families though NFS. 8,008 SOCIAL MEDIA FOLLOWS 4,813 followers on Twitter and 3,195 likes on Facebook. 179 NFS VOLUNTEERS Contributing 4,722 hours of work a year the equivalent of 2.6 full time staff and worth about 47, NFS STAFF TEAM 3.5 full time equivalent staff at NFS. 34,500 WEBSITE VISITORS One third of our web visitors are new each year. We provide unique peer support, improve the treatment of disadvantaged LGBT people in the adop2on/fostering process, encourage inclusion, and work directly with our ac2vely involved members and with agencies to find more new families for children in care. We do this by: Providing a social network for parents to share support, strengthen family rela2onships, and for children to gain confidence in their new families. Promo2ng LGBT families, providing advocacy and support by giving our 2,100 members a strong voice, developing self-confidence, improving inclusion and sharing informa2on Providing direct help to families with serious difficul2es and to agencies. We are based in Cambridgeshire but work throughout the UK. We have a stable core income from half the UK s adop2on and fostering agencies which pay a subscrip2on for our services. Our biggest asset is our enthusias2c membership and we harness help from around 180 volunteers. NFS is asking for funding for three years to support 250 volunteers (approximately 180 exis2ng and 70 new) through a part-2me Volunteer Coordinator, through system changes to be undertaken by an exis2ng NFS manager and some support and travel costs. The total cost of this work will be 49,307. The community NFS supports Prejudice against LGBT parents remains widespread. The Bri2sh Social A`tudes Survey asks people whether they think that same-sex couples should be allowed to adopt children under the same condi2ons as other couples; 44% said no. 32% of people believe that if you are gay you are unable to foster. LGBT people remain significantly underrepresented as adopters. A survey of NFS members in 2014 showed 36% feared discrimina2on when it came to finding a child and 25% had experienced prejudice as parents. The Na2onal Adop2on Register and Adop2on Link both state that LGBT adopters are more willing to adopt the hardest-to-place children with high levels of need. LGBT families adop2ng these children can face serious difficul2es. Children in care are four 2mes more likely than others to require mental health services; and nine 2mes more likely to have special needs. Their problems do not vanish when the child is adopted. This means that NFS families are dispropor2onately raising children with mul2ple needs and complex backgrounds. This is where NFS steps in. We facilitate peer support through local events, networks and through our website. We cannot provide any of this support without our volunteers. Activities and services We make a las2ng difference to LGBT people s lives by reducing isola2on, s2gma and discrimina2on and encouraging them to share in the life of the whole community.

2 PAGE TWO JUNE 2016 We do this by suppor2ng: - LGBT adopters and foster carers (more than 2,000 members). They told us that local events giving peer support as their biggest priority (2015 consulta2on). These events are arranged by volunteers. This reduces isola2on. Corporate Volunteers at Pride MEMBERS VOICES We just wanted to extend a huge thank you to everyone at New Family Social for the support and the resources we have received throughout the adoption process. Things have been so much easier by being part of New Family Social and a lot of Social Worker questions and concerns (as well as our own) have been answered very quickly because of the charity. On Friday were officially linked to the 7 year old boy we have been considering for the past two months, with his Social worker, his previous social worker and the family-finder all agreeing to the match after visiting us. Words cannot express how excited we are! NFS volunteer and recent adopter of a seven year old boy - LGBT poten&al adopters/foster carers (35,000 website users per year and social media reach of 9.5 million). NFS is the only LGBT adop2on/fostering charity. No one else does what we do. LGBT people considering adop2on/fostering need advice about the process, the reality of paren2ng children with complex needs, and help to find an agency which welcomes LGBT people. This encourages LGBT parents to share in the wider adop2on/fostering community. - Adop3on and fostering agencies (179 are members of NFS). Agencies need access to LGBT people and training, accurate research and informa2on. Track Record Since 2012 we have run an annual na2onal LGBT Adop2on and Fostering Week campaign. In 2016 more than 100 agencies par2cipated in the week, and an incredible 9.4 million people heard about it on social media. NFS runs a further 150 peer support group ac2vi2es each year as well as our annual summer camp (run by 25 volunteers) for 300 LGBT adopters, foster carers and children. In 2015, NFS teamed up with Barnardo s for a project to help LGBT people explore the possibility of adop2ng sibling groups. We have also worked in partnership with PACT to recruit more adopters for harder-to-place children. In April 2016 we received 7,500 towards the salary of a Volunteer Coordinator from the Allen Lane Founda2on. This has allowed us to begin this work but it will only part-fund the post for nine months. In the eight weeks since the post was created, the volunteer coordinator has already increase the support for our 16 regional coordinators and increased ahendance at NFS events substan2ally. The need and how we plan to meet it NFS has 179 exis2ng volunteers, providing around 4,722 hours of work each year (equivalent to 2.6 full 2me posts). Our volunteers are an invaluable resource, but one that we lack the capacity to support and expand. Volunteers feedback shows their sa2sfac2on with their volunteer role is just 75%, with many calling for addi2onal support (2015 data). NFS has just 3.5 full 2me equivalent staff and struggles to provide the support and co-ordina2on the volunteers have asked for, let alone develop their roles. At the board mee2ng in Jan 2014, the trustees agreed 14 priori2es. One of these was to fundraise for and recruit a Volunteer Co-ordinator and plan training for regional volunteers. This was reiterated in the strategic plan as a key priority. Several of the other NFS priori2es can only happen with input from volunteers. NFS's members value the opportunity to meet each other above all else (2015 data). Mee2ngs are organised and hosted by volunteers. NFS has doubled in size in the last 18 months. We need extra volunteers and they need beher support to meet the expressed needs of adop2ve and foster families. Volunteers supporting NFS kids

3 PAGE THREE JUNE 2016 NFS volunteers promoting adoption and fostering Our exis2ng volunteers need central co-ordina2on, support and training. We need to develop our policies and the supervision of their work. Addi2onally we need more volunteers to meet the needs of our adop2ve and foster parents and their children. We have the facility for our members to offer to help NFS via our website. We have received 67 new offers of help (currently not u2lised) which would give us an extra capacity of around 2,618 hours per year (equivalent of 1.4 full 2me posts). A John Ellerman grant would allow us to induct and use these volunteers/this capacity. Recrui2ng a Volunteer Co-ordinator is a key priority for NFS stakeholders and is detailed in the strategic plan. Several of the other NFS strategic priori2es (iden2fied through consul2ng our members) can only happen with input from volunteers. Therefore we need more volunteers to meet the needs of our adop2ve and foster families. The difference we would make Outcome 1: Each year 2,200 LGBT adopters and foster carers and their children will be beher supported through NFS s network, ac2vi2es and publica2ons, all led by 250 volunteers. We will monitor this by LGBT adopters/foster carers ra2ng their sa2sfac2on with the support they receive from NFS each year. We have taken a baseline prior to this funding applica2on. They will also comment on all services. We will support this evidence with case studies. Outcome 2: Each year 100,000 people will be beher informed about LGBT adop2on/fostering through the work of 125 of our media volunteers. [The figure is based on NFS's 2014 stats: 35,000 unique web visitors, 8,000 social media followers, TwiGer reach of 9.4 million, press readership of 1 million and 1 million TV viewers]. We will monitor web hits, social media followers and reach, and media coverage. We will gather evidence of changing public a`tudes by ci2ng large-scale public a`tude surveys. We will monitor the propor2on of adop2on orders made to same-sex couples. Outcome 3: Each year 500 adopted and foster children will be brought together to make friends at 150 events run by 50 volunteers. We will monitor ahendance at events, seek children s feedback and encourage the older children to contribute to NFS by volunteering to help out if they re able to do so. MEMBERS VOICES: HOMOPHOBIA We experienced some veiled and some not-so-veiled homophobia during the assessment process. When looking for an agency at the start of the process we had an interview with an adoption agency in London the social worker involved said we stood no chance of being parents and people would think we were child molesters! At approval panel, after waiting two hours to be seen, the panel said they wanted more information on what we did at home as a gay couple, however the panel was 75% evangelical Christians and our social worker and the CEO of the agency felt it was because we were gay. At our next panel, six panel members decided not to attend, including the Chair of the panel. NFS volunteers Gay male adopter, London.

4 PAGE FOUR JUNE 2016 Our project in more detail Some ac2vi2es will take place as part of the Volunteer Coordinator s work, and some ac2vi2es will be enabled thanks to the volunteers we recruit, support and train. 1) Ac3vi3es, services and outputs rela3ng directly to the Volunteer Coordinator s work: Update all volunteers' details including their skills and what they're willing to do. MEMBERS VOICES: HOMOPHOBIA 2014 I was not confident that our family would be considered with equal priority to a family headed by a man and a woman. Gay male adopter, London One council team did suggest we go somewhere else, blaming our jobs, but we both felt, independently, that this was not the truth. Gay male adopter, South West Although we cannot prove it, we believe that there may have been homophobia which was the real reason we were initially rejected. They could not validate the decision when formally challenged An NFS volunteer Gay male in assessment, East Our social worker appears biased. I am not sure we will pass the assessment, therefore no child will be placed with us Lesbian, in assessment, London Regular communica2on with all volunteers to include an ed newsleher, and a closed area of the NFS message board for volunteers only. Training. Develop induc2on and task-specific training for all volunteers which will take place through online "webinars" and face-to-face. Policies will be reviewed and developed where they are lacking. We will seek annual feedback from volunteers and act on their sugges2ons. Recruitment of a further 70 volunteers. References will be provided for all volunteers since many need evidence of the work they have done with children if they are hoping to adopt or foster. Project planning - we will ensure volunteers' voices are part of all NFS's plans. We will develop the 16 volunteer regional co-ordinator roles to allow a greater public profile (such as represen2ng NFS externally). We will develop our corporate partnerships to beher use corporate volunteers. 2) Ac3vi3es, services and outputs which are enabled by the volunteers' involvement: 16 regional coordinators will greet 600 new members each year and arrange 150 ac2vi2es. 1,152 hours per year 72 media volunteers willing to talk to journalists will be trained and briefed to help raise awareness of LGBT adop2on and fostering. 100 hours per year. One child profile volunteer will add details of children needing homes to the NFS website. 52 hours per year One graphics volunteer will do all our graphic design. 52 hours per year One materials volunteer will send out 2,000 items of publicity material on request to raise awareness of LGBT adop2on and fostering. 52 hours per year. 20 corporate volunteers from exis2ng corporate partners Royal Bank of Scotland, UBS Bank, Lloyds Bank and Goldman Sachs will support NFS in ad hoc projects and new corporate partners will be sought. 80 hours per year. 20 volunteers will run our summer camp for 300 NFS members. 2,880 hours. 30 LGBT Adop2on and Fostering Week volunteers will support and speak at events around the country. 30 hours Events including Pride will be covered by six volunteers. 36 hours per year 11 trustees and a volunteer Company Secretary will govern NFS. 288 hrs per yr Therefore a total 179 exis2ng volunteers will contribute 4,722 hrs each year. The cost of these hours if paid for at 10 per hour would be 47,220 each year.

5 PAGE FIVE JUNE 2016 Volunteers at NFS camp 3) The recruitment of new volunteers We will recruit around a further 70 new volunteers as follows (these volunteers have already offered help): 13 volunteers will write for the NFS magazine 26 hrs per year 54 volunteers will give general (mainly admin) help. 2,592 hours per year. These addi3onal 2,644 hours would cost 26,440 if paid for at 10 per hour. This gives a total of 220,980 worth of volunteer 2me over three years. Learning and risks General monitoring: In addi2on to the specific monitoring outlined above (please see page three), we will record the number of volunteer hours given each year. We will record the number of new volunteers joining us and those leaving (including their reasons for joining and leaving). Each year we will seek volunteers' feedback through a survey. The volunteers' sa2sfac2on baseline prior to this funding applica2on was 75% which we will improve each year. Risks: Resistance to change - NFS volunteers have had less support and development in the past and some may be resistant to perceived interference. The Volunteer Coordinator will need to win the support of those who have been giving their 2me to NFS over a long period. Spread too thinly - NFS has a lot of volunteers and it may become apparent through the Volunteer Coordinator s work that fewer volunteers giving more 2me would be more efficient. Fit with John Ellerman Foundation s guidelines New Family social works with people facing disadvantage (both LGBT parents who are socially excluded, and their children who have experience harm, loss and ongoing disadvantage). We exist to strengthen their personal and social networks through peer support. NFS has a na2onal footprint and this applica2on is all about the good use of volunteers. NFS has strong governance and management with a highly qualified board which oversees the finances, the services and evaluates its own performance through skills audits. A thorough and far-reaching user consulta2on in 2015 underpins the NFS strategic plan and this Volunteer Coordinator applica2on is a key priority from that consulta2on. When the grant ends NFS is a growing organisa2on. We will aim to be able to absorb some of Volunteer Coordinator post into our general running costs (covered by agency and individual subscrip2ons) by 2019 and will seek trust funding for the rest. THE VOLUNTEER COORDINATOR WILL: Recruit, train and support a further 70 volunteers to include selections, DBS checks as required, induction, training and ongoing support. Support NFS s 180 existing volunteers and maintain regular communication with all volunteers, including an ed newsletter and a closed area of the NFS message board for volunteers only. Work with the manager to review and develop New Family Social s policies and procedures which underpin the volunteering and further the aims of NFS. Develop the 16 volunteer regional co-ordinator roles to allow a greater public profile. Develop our existing corporate partnerships to better use corporate volunteers. Ensure volunteer s voices are part of all NFS s project plans. Be responsible for all monitoring and administration for the volunteer development project, including updating volunteers details, seeking annual feedback from volunteers, and monitoring volunteers and the impact of their work such as the members they support, their impact on public perceptions, etc..