“a modern charity” in “the changing landscape” what might it mean for the overall...
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“A modern charity” IN “The changing landscape” What might it mean for the overall charity ecosystem?. Paul’s ‘cooking ingredients’. Brightest thinkers/most skilled practitioners Enterprising, growing (faster than competitors) Strong brand, well-positioned with stakeholders - PowerPoint PPT PresentationTRANSCRIPT
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• “A modern charity” IN
• “The changing landscape”
What might it mean for the overall charity ecosystem?
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Paul’s ‘cooking ingredients’
• Brightest thinkers/most skilled practitioners• Enterprising, growing (faster than competitors) • Strong brand, well-positioned with stakeholders• A strategic culture – analysing/planning• Financially sustainable• Delivering quality services, with like-minded
partners, that reduce crime
More impact and more influence
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The UK charity universe in 2011
• 200,000 registered charities
• Total sector income over £50 billion
• Investments £80 billion
• Only 1,400 with income over £5m
• 160,000 with income <£25k
• 20% in the middle ground
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Universal features of a ‘modern charity’?
• A strategic culture
• Financially sustainable
• Transparent and accountable
• Strong focus on outcomes and public benefit
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• So the challenge for the voluntary sector is to gear up for this
• And to shift its emphasis away from “can we find someone to continue funding what we are already doing” to:o Will anyone want to buy and make use of our
products and services?o Are there enough people out there who will want
to buy what we do?o Can we provide our services within prescribed costs
and quality guidelines?
Payment by results
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The changing landscape
• 38,000 charities receive a government grant or
deliver services under contract
• But 140,000 have no relationship with the state
• Government funding is 36% of sector income
• An increase from 27% in 1991
• There has been a major shift from grants to
contracts – 50/50 ten years ago; 25/75 now
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Huge cuts in public spending
• £81bn of cuts over next four years to 2014-15
• Central government departments cut by 19%
• Funding to local authorities cut by up to 30%
• And two further years of cuts forecast yesterday
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‘Big Society’ may lack traction, but there are real changes appearing
• Localism Act 2011
• Remodelling public service delivery – ‘provider agnostic’ and payment-by-results
• New ideas around giving – social finance
The sector’s ecosystem is changing
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A squeezed middle
• The large, national household names are riding the storm…
• …and community organisations continue to thrive
• But life is getting tougher for middle-sized organisations
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Many service deliverers increasingly dependent on state funding
• Will they become constrained in their campaigning…
• …and/or relegated to role of largely powerless sub-contractors?
• “Charities assisting commercial organisations to maximise their profits” (NCIA)
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The rise of social enterprise
• Big Society Capital has £600m to invest over four years
• Will ‘traditional’ charities be able to adjust to new forms of financing?
• What is social enterprise, and might it be captured by for-profit interests?
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Source: Ipsos MORIDon’t trust them at all
Trust them completely
1%
6%
3%3% 3%5%
23%
10%
5%
19%20%
2%1%4%
18%
11%
8%
22%22%
0 1 2 3 4 5 6 7 8 9 10
20052008
2005 Mean Score: 6.3 2008 Mean Score: 6.6
It’s all about retaining public trust and confidence
• Charity must retain its distinctive brand if public trust is to remain high
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Sector behaviour the public want to see
• Transparent and accountable
• Independent, non-political
• Brave and innovative
• Collaborative, not competitive
• Providing VFM, and delivering public
benefit
• Building public trust and confidence