The Road to the Compact The English Experience

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The NGO Sector in the UK: Setting the context. Long Tradition of Charity Roots in Religious Upheavals in 16th CenturyPublic support for charity remains strong New ways to give money are developing.Influence over government policy is growing. Strong Campaigning tradition.Increasingly deliveri

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The Road to the Compact The English Experience

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1. The Road to the Compact The English Experience Nolan Quigley, NCVO European and International Officer [email protected] My name is Nolan Quigley, I am in responsible for the European and International work at NCVO, the national umbrella body for voluntary organisations in England, In the time available, I would like to highlight the key characteristics of the voluntary sector in the UK at what is a time of perhaps unprecedented change. I will then outline what NCVO does and I will focus in particular on our campaigning work both at the UK and particularly at the European level. I will then give some examples of the current culture of change for our sector which I hope you will find interesting. I anticipate speaking for 45 minutes, there will be time for questions afterwards but please stop me at any time ! My name is Nolan Quigley, I am in responsible for the European and International work at NCVO, the national umbrella body for voluntary organisations in England, In the time available, I would like to highlight the key characteristics of the voluntary sector in the UK at what is a time of perhaps unprecedented change. I will then outline what NCVO does and I will focus in particular on our campaigning work both at the UK and particularly at the European level. I will then give some examples of the current culture of change for our sector which I hope you will find interesting. I anticipate speaking for 45 minutes, there will be time for questions afterwards but please stop me at any time !

2. The NGO Sector in the UK: Setting the context The sector has grown rapidly over the last decade, in terms of the number of organisations and revenues generated. As you will be aware, this is a common feature in most developed economies. ( ALMANAC) Organised charity – whether orientated towards philanthropy or mutualism – has a long tradition in Britain. In the new post-industrial post-welfare-state mixed economy, ( where the roles of the private and public sector are blurred), we are finding that public support for charity remains strong although we would be foolish to ignore social trends that emphasise the role of the individual, and individual responsibility. 15 Minutes talk About the NGO sector in the UK About NCVO What is the Compact How did the Compact Happen? Making the Compact Matter What next for the Compact? The European Dimension The sector has grown rapidly over the last decade, in terms of the number of organisations and revenues generated. As you will be aware, this is a common feature in most developed economies. ( ALMANAC) Organised charity – whether orientated towards philanthropy or mutualism – has a long tradition in Britain. In the new post-industrial post-welfare-state mixed economy, ( where the roles of the private and public sector are blurred), we are finding that public support for charity remains strong although we would be foolish to ignore social trends that emphasise the role of the individual, and individual responsibility. 15 Minutes talk About the NGO sector in the UK About NCVO What is the Compact How did the Compact Happen? Making the Compact Matter What next for the Compact? The European Dimension

3. Some Key Figures 500 000 voluntary organisations (169,000 “charity” status) Total income of £26.3 billion (€39.3b) ( 38% from government sources.) Operating expenditure of £20.4 billion ( €30.5b); Net assets of £70.1 billion (€102b); 608,000 paid employees; Over 3 million volunteers, 1 million trustees 27% of the population volunteers every month A contribution of £7.2 billion ( €10.5b) to UK Gross Domestic Product (GDP) Average monthly donation per person was £12.93 (€18.80) Average proportion of the population giving in any one month was 67.3% (CHARITY: This includes all registered charities but excludes universities, independent schools, organisations that are regulated by Government, housing associations and mutual bodies, and those organisations whose benefit is solely for private gain or promotion, such as religion.  ) (CHARITY: This includes all registered charities but excludes universities, independent schools, organisations that are regulated by Government, housing associations and mutual bodies, and those organisations whose benefit is solely for private gain or promotion, such as religion.  )

4. What is NCVO? The National Council for Voluntary Organisations: NCVO started in 1919 as the National Council of Voluntary Services, just after the first world war. Although there was clear evidence at that time of the need to set up a new national organisation to bring the existing voluntary bodies together and into closer relationships with government departments, it was only made possible through a legacy from Mr Edward Vivian Burchall who died of war wounds in France on his 32nd birthday. Edward had played a large part in the voluntary sector in his short life and before his death, he wrote a short note ( which can still be seen in London’s Imperial War Museum) to his friend SP Grundy, which read, “ I am scuppered, I’m leaving you £1000 to do some of the things we talked about.” This legacy enabled the creation and sustainability of the National Council of Social Services which later changed its name to the National Council for Voluntary Organisations, and today is known simply as NCVO an umbrella organisation for the voluntary sector in England. NCVO started in 1919 as the National Council of Voluntary Services, just after the first world war. Although there was clear evidence at that time of the need to set up a new national organisation to bring the existing voluntary bodies together and into closer relationships with government departments, it was only made possible through a legacy from Mr Edward Vivian Burchall who died of war wounds in France on his 32nd birthday. Edward had played a large part in the voluntary sector in his short life and before his death, he wrote a short note ( which can still be seen in London’s Imperial War Museum) to his friend SP Grundy, which read, “ I am scuppered, I’m leaving you £1000 to do some of the things we talked about.” This legacy enabled the creation and sustainability of the National Council of Social Services which later changed its name to the National Council for Voluntary Organisations, and today is known simply as NCVO an umbrella organisation for the voluntary sector in England.

5. Some Basic Facts about NCVO Established in 1919 England wide remit 4900+ member organisations c. 120 staff c. £5million ( €7.27million) annual turnover Sister organisations exist in Scotland, Wales and Northern Ireland. SCVO: Scottish Council for Voluntary Organisations WCVA: Wales Council for Voluntary Action NICVA: Northern Ireland Council for Voluntary Action Our turnover is £5million ( 7.27 milion euros ) (Approximately 1 billion Yen or 9 million US dollars)Sister organisations exist in Scotland, Wales and Northern Ireland. SCVO: Scottish Council for Voluntary Organisations WCVA: Wales Council for Voluntary Action NICVA: Northern Ireland Council for Voluntary Action Our turnover is £5million ( 7.27 milion euros ) (Approximately 1 billion Yen or 9 million US dollars)

6. How is NCVO Financed? This slide illustrates that NCVO receives funding from various sources. Sustainable funding is of course vital to us as a voluntary organisation, but also important for us, in this age of increasing relations with government is a balanced portfolio to guarantee our independence. Earned Income 31% ( For example by holding events, selling publications or research findings.) Active Community Unit ( ACU) at the Home Office ( Ministry of the Interior) Core Grant 19% CAF ( Charities Aid Foundation) 18% Project Grants and Fundraised Income 21% ( We receive funding for specific projects from a variety of sources including the national lottery and the European Union) Membership Subscriptions 10% Investment Income 1% This slide illustrates that NCVO receives funding from various sources. Sustainable funding is of course vital to us as a voluntary organisation, but also important for us, in this age of increasing relations with government is a balanced portfolio to guarantee our independence. Earned Income 31% ( For example by holding events, selling publications or research findings.) Active Community Unit ( ACU) at the Home Office ( Ministry of the Interior) Core Grant 19% CAF ( Charities Aid Foundation) 18% Project Grants and Fundraised Income 21% ( We receive funding for specific projects from a variety of sources including the national lottery and the European Union) Membership Subscriptions 10% Investment Income 1%

7. What NCVO does Conferences, seminars, regional events Networks and forums Newsletters and publications Website briefings Helpdesk Pilots and new ways of working Campaigning, advocacy and lobbying EU and international work How does NCVO achieve its aims?How does NCVO achieve its aims?

8. The Road to a Compact As Lithuania heads towards “a resolution” , you will have heard about the English Compact… The first agreement of its kind between NGOs and national government. You will probably be interested to hear: How did we get our Compact? Was it a long, stressful and difficult road or a nice easy one? It has been 10 years since the process began, so it might be useful to hear about our mistakes and what we have learned over this time. I am sure you won’t make the same ones. As Lithuania heads towards “a resolution” , you will have heard about the English Compact… The first agreement of its kind between NGOs and national government. You will probably be interested to hear: How did we get our Compact? Was it a long, stressful and difficult road or a nice easy one? It has been 10 years since the process began, so it might be useful to hear about our mistakes and what we have learned over this time. I am sure you won’t make the same ones.

9. I will now talk about the Compact, which was another major change or recent yearsI will now talk about the Compact, which was another major change or recent years

10. A brief background to the Compact An agreement between government and the NGO sector The national Compact was launched in 1998 The Compact has 5 codes of practice They give NGOs enforceable rights like 12 week consultation periods and full cost recovery. Government formally recognises NGO independence and right to campaign without risking its funding It has improved the relations between NGOs and national government and with local public bodies 3 in 4 areas have a Local Compact

11. 5 Compact Codes of Practice Funding Consultation Volunteering Black and Minority Ethnic groups Community organisations + Local Compacts The Compact is actually several different codes of practice rather than 1 document. Each code was developed in response to an identified need and they are listed on this slide. You can download full copies of these codes at the compact web site which I will give later on. In addition, work is underway to establish more local compacts.The Compact is actually several different codes of practice rather than 1 document. Each code was developed in response to an identified need and they are listed on this slide. You can download full copies of these codes at the compact web site which I will give later on. In addition, work is underway to establish more local compacts.

12. The Compact: Process and Timescale Voluntary sector September 1997 - conference of umbrella bodies establishes Compact Working Group October 1997 - 1st draft memorandum November 1997 - 5 month consultation with sector December 1997 - engagement with Government Government November 1997 - Home Office took the lead Early 1998 - Ministerial Working Group established December 1997 Engagement with voluntary and community sector February 1998 - cross Governmental consultation Like the EKAK being developed in Estonia. ( possibly skip this slide) This slide shows the 2 track process undertaken by government and the voluntary sector that led to the compact being signed in 1998. The Compact Working Group had an independent Chair and members from all over the voluntary sector its Secretariat was at NCVO. It produced a memorandum sent out to 12,000 organisations for a thorough 5 month consultation with the sector. At the same time, the Government also set up a Ministerial working group with experts from 13 government departments to look at the case for a Compact based on “a set of principles with which to underpin the relationship.” By December 1997, the sector and the government were engaging directly with one another. Like the EKAK being developed in Estonia. ( possibly skip this slide) This slide shows the 2 track process undertaken by government and the voluntary sector that led to the compact being signed in 1998. The Compact Working Group had an independent Chair and members from all over the voluntary sector its Secretariat was at NCVO. It produced a memorandum sent out to 12,000 organisations for a thorough 5 month consultation with the sector. At the same time, the Government also set up a Ministerial working group with experts from 13 government departments to look at the case for a Compact based on “a set of principles with which to underpin the relationship.” By December 1997, the sector and the government were engaging directly with one another.

13. Strengths of the Compact Independence of voluntary sector Not legally binding (changing culture) Compact as set of rights (and responsibilities) Annual meeting with ministers Some senior backing within Government This slide details the good points of the Compact.This slide details the good points of the Compact.

14. Weaknesses of the Compact Not legally binding Competing policies/attitudes in government Little cost if not implemented Limited use by voluntary organisations – not a “usable” document The solution? Compact Advocacy Programme As I indicated before, perhaps the biggest drawback of the compact is its lack of legal status. In addition to this, we have noticed that some government departments are more aware of it than others and in some ministries, people at different hierarchies have different levels of awareness. This can produce a complicated picture. The compact itself consists of 5 compact codes and as such a long body of work it can be difficult and time consuming for some smaller organisations to assess if they think they have been subject to a breach of the compact in their dealings with government To combat, just these kinds of drawbacks, “Compact Advocacy” has been established. This is A project based in NCVO which: Takes cases and to establish case law To provide information to voluntary organisations on their rights To negotiate on their behalf To promote within government and the sector As I indicated before, perhaps the biggest drawback of the compact is its lack of legal status. In addition to this, we have noticed that some government departments are more aware of it than others and in some ministries, people at different hierarchies have different levels of awareness. This can produce a complicated picture. The compact itself consists of 5 compact codes and as such a long body of work it can be difficult and time consuming for some smaller organisations to assess if they think they have been subject to a breach of the compact in their dealings with government To combat, just these kinds of drawbacks, “Compact Advocacy” has been established. This is A project based in NCVO which: Takes cases and to establish case law To provide information to voluntary organisations on their rights To negotiate on their behalf To promote within government and the sector

15. Key Learning from the Compact Process 1 Agreement across the voluntary sector as to what it wanted from a relationship with government; Recognition that both parties could gain from the process - the development of a ‘win win’ situation which in this case was achieved through the identification of shared principles and values; Acceptance that such a process required support from all concerned and could not be just top down - widespread and open consultation was important

16. Key Learning from the Compact Process 2 Sponsorship of the process at a high level in government; Understanding of the limitations that both sides faced; Ensuring that the outcomes could be measurable; Each piece of research carried out revealed a clear need for Compacts to be closely monitored and scrutinised in order to ensure Compacts were being implemented The establishment of a full two-way relationship, with obligations on the sector as well as on government

17. Improvements to the Compact All roads need maintenance. And the road to a succesful compact is no different…. There have been some things that work and others that have not. All roads need maintenance. And the road to a succesful compact is no different…. There have been some things that work and others that have not.

18. Giving The Compact TEETH !!

19. NCVO’s Compact Advocacy Programme Run by the sector for the sector - acts as the voice of sector Supporting organisations in using the Compact to improve their relationship with local and central government Barings Foundation and Big Lottery Funding Outcomes included, over turning funding decisions, extending consultation periods, assurances of better future working. Department for Culture Media and Sport departmental review

20. Compact Advocacy Programme Examples of Successes: £17 million (€25m) secured for NGO sector after Department of Health ( Health Ministry) threatened to make cuts in National Health Service (NHS) budget which would impact on NGOs delivering vital services. Department for International Development consultation on Conflict White Paper extended to full 12 weeks. ( From 6 weeks) Volunteers on Public Benefits provided with lunch ( A scheme organised by the State argued that lunch should be paid by “volunteers”.) NOMS has promised to offer longer-term contracts to voluntary and community organisations, to produce new guidelines on contracting and procurement and to ensure that all procedures comply with the Compact. Service level agreements are a huge issue for NGOs, as they are often extremely detailed documents with very complicated legal language. Essex will now be using produce a short, easy to understand agreement, with separate guidance for grants and small voluntary organisations. Norfolk County Council contacted by CAP after a non compact compliant consultation process about proposed cuts. Following CAPs intervention written confirmation Chief Executive of Norfolk County Council gained commitment from Norfolk County Council that future budget setting will avoid last minute proposals that do not allow sufficient time for consultation and discussion. A cross sector group is in the process of being set up to discuss the over arching issues between the NGO sector and the Council. The Group will ensure that Norfolk County Council's processes and working practices are Compact compliant and support the work of NGOs. What this shows is that the Compact works and is a practical tool that can be used by voluntary organisations to change the way they work with government local and national. It is vital that voluntary and community organisations get familiar with it and use it."   NOMS has promised to offer longer-term contracts to voluntary and community organisations, to produce new guidelines on contracting and procurement and to ensure that all procedures comply with the Compact. Service level agreements are a huge issue for NGOs, as they are often extremely detailed documents with very complicated legal language. Essex will now be using produce a short, easy to understand agreement, with separate guidance for grants and small voluntary organisations. Norfolk County Council contacted by CAP after a non compact compliant consultation process about proposed cuts. Following CAPs intervention written confirmation Chief Executive of Norfolk County Council gained commitment from Norfolk County Council that future budget setting will avoid last minute proposals that do not allow sufficient time for consultation and discussion. A cross sector group is in the process of being set up to discuss the over arching issues between the NGO sector and the Council. The Group will ensure that Norfolk County Council's processes and working practices are Compact compliant and support the work of NGOs. What this shows is that the Compact works and is a practical tool that can be used by voluntary organisations to change the way they work with government local and national. It is vital that voluntary and community organisations get familiar with it and use it."  

21. “COMPACT Plus Strengthening Partnerships” Set in context of Government’s Public Service Delivery agenda: NOMS; NHS; Children’s Trust etc. View from National Government and VCS that Compact needs to have `teeth’ Greater focus on funding agenda and greater involvement of VCS in procurement of public services Set in context of Government’s Public Service Delivery agenda: NOMS; NHS; Children’s Trust etc. View from National Government and VCS that Compact needs to have `teeth’ Greater focus on funding agenda and greater involvement of VCS in procurement of public services

22. Where did Compact + come from? March 2005- Home Office ( Interior Ministry) launched consultation on their own proposals including : a Commissioner to enforce Compact compliance; a small set of funding focused commitments; an accreditation scheme

23. Where are we now? John Stoker appointed as Compact Commissioner to champion the Compact. New Compact Office in Birmingham NCVO’s Compact Advocacy work continues

24. Road Towards a European Concordat NCVO Proposal for a Compact-style agreement for the EU Institutions and NGOs.

25. Why do we need a Concordat ? A complex relationship between civil society and the European Commission Not just consultation, not just funding. No all-encompassing memorandum of understanding exists. Different expectations of the relationship. Lack of faith in the Minimum Standards of Consultation. […]

26. ..why do we need a Concordat? Many non-Brussels based NGOs feel excluded from consultations and structures. Different attitudes in different parts of the European Commission to dialogue and communication with civil society. Finally to conclude: Much is happening at EU level at present. The door is opening. The national element has traditionally been ignored or unwelcome in Brussels. ( eg Connecs, eg rules on consultation.) Now is the time for national NGOs and their platforms to gather together to explore how we should seek to engage with the EU and use our national experiences in the solution to the EU’s civil dialogue needs. CEDAG with its national members is well placed to co-ordinate this. Point 2 – JS NPO Code of Conduct – a recent example of poor consultation by the Commission Connecs database Problems with representation via Brussels-based EU NGOs and preference of EC to deal only with them or with the liaison committee of European Economic and Social Committee Point 3 – NQ An agreement between the European Commission and CS across the EU is needed. Including min standards on consultation, Principles of a good funding relationship Guarantee of independence and right to campaign irrespective of EU funding. Principles of transparency and accountability for NGOs Finally to conclude: Much is happening at EU level at present. The door is opening. The national element has traditionally been ignored or unwelcome in Brussels. ( eg Connecs, eg rules on consultation.) Now is the time for national NGOs and their platforms to gather together to explore how we should seek to engage with the EU and use our national experiences in the solution to the EU’s civil dialogue needs. CEDAG with its national members is well placed to co-ordinate this. Point 2 – JS NPO Code of Conduct – a recent example of poor consultation by the Commission Connecs database Problems with representation via Brussels-based EU NGOs and preference of EC to deal only with them or with the liaison committee of European Economic and Social Committee Point 3 – NQ An agreement between the European Commission and CS across the EU is needed. Including min standards on consultation, Principles of a good funding relationship Guarantee of independence and right to campaign irrespective of EU funding. Principles of transparency and accountability for NGOs

27. Some Key Principles & Undertakings Independence to campaign irrespective of funding. Consultation on all policy over 12 weeks minimum period. Communication rules to be put in place (regarding letters emails etc) Strong scrutiny and evaluation: European Parliament to play a role. Transparency and Accountability of the Civil society organisations I will now briefly talk about the 9 basic principles and a selection of the various undertakings under each principle…I will now briefly talk about the 9 basic principles and a selection of the various undertakings under each principle…

28. Labai dekui !

29. Some Useful Websites www.ncvo-vol.org.uk www.ncvo-vol.org.uk/compactadvocacy www.charity-commission.gov.uk www.thecompact.org.uk www.scvo.org.uk www.wcva.org.uk www.nicva.org

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