Presentation on theme: "“A modern charity” IN “The changing landscape” What might it mean for the overall charity ecosystem?"— Presentation transcript:
“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 A strategic culture – analysing/planning Financially sustainable Delivering quality services, with like-minded partners, that reduce crime More impact and more influence
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
Universal features of a ‘modern charity’? A strategic culture Financially sustainable Transparent and accountable Strong focus on outcomes and public benefit
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
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
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
‘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
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
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)
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?
Source: Ipsos MORI Don’t trust them at all Trust them completely 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
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