NCVO Funding Commission

1. NCVO Funding Commission Presentation by Richard Gutch Secretary to the Commission

2. Background Set up by NCVO in February 2009 Response to sector’s concerns and uncertainty about funding Aim is to set a new funding agenda for the next 10 years Report in December 2010

3. FundingCommission • Chaired by Fiona Ellis, former Director Northern Rock Foundation • Members comprise: Paul Amadi (Chair IoF), Dawn Austwick (Esme Fairbairn), Michael Brophy (ex CAF), Dinah Cox (CLG Equalities), Claire Dove (Chair SEC), Stephen Dunmore (Chair Capacitybuilders), Toby Eccles (Social Finance), Brian Horner (Voluntary Action Norfolk) and John Low (CAF)

4. The Commission’s vision is that by 2020 the funding environment will Maximise opportunities for independent voluntary action; and Enable civil society organisations to further their goals more effectively and sustainably. Commission’s Vision

5. Questions The Commission is looking 10 years into the future and asking: • What are the opportunities and challenges for civil society organisations in relation to their funding? In particular, what will be the implications of the new political and financial environment facing the sector? • What new sources of funding could be developed? What new mechanisms are needed? • What are the alternatives to conventional public sector funding?

6. Questions • How can civil society organisations make better use of existing resources to achieve their missions more effectively? • What changes to funding practice are required? How should the relationship between funder and funded be developed? • What new skills, models, tools or other forms of support are needed to help the sector?

7. Themes The following 10 themes are being used to structure the Commission’s work: - Present and future context - Capitalisation - Social investment - Individual giving

8. Themes - Public sector funding - Trading - Trust and foundations - Lottery - Commercial sector support - Effectiveness

9. Consultation The Commission will be consulting with: • Anyone who is interested (through the website from June as recommendations emerge) • Key stakeholders (through meetings and roundtables- ongoing May- Sept) • Different parts of the sector (through focus groups- Sept.)

10. Framework for Individual Giving Theme • Giving ie the supply of funding, covering philanthropy (ie high net worth giving), as well as general giving • Asking ie the demand for funding, covering fundraising • Context for giving and asking • Regulation • ICT and social media developments • New ways of giving • Papers from Beth Breeze, Joe Saxton, Guy Yeomans and others.

11. Giving- issues • Giving by the rich has not kept up with the increase in wealth • How can we reposition philanthropy so it is viewed as an essential part of a successful life in the 21st Century? • How can we establish an accepted norm about what it is an appropriate amount to give?

12. Giving- emerging recommendations • Pro- philanthropy organisations should become more proactive in rebutting spurious accusations about major donors and in promoting greater recognition of high net donors • The sector should develop an initiative for promoting the benefits to donors of supporting charities and good causes

13. Asking- issues • Donors’ tastes and interests should be recognised more strongly • All donors’ should receive the level of care currently reserved for major donors • Better exploitation of demographic segmentation is needed • Fundraising needs to be developed and enhanced as a profession

14. Asking- emerging recommendations • Fundraising should be promoted by government and the sector as seriously as giving and volunteering is • The sector should take forward collective research on demographic segmentation of potential donors • Fundraising education and training should be developed

15. Context- regulation • Proportionality, not precaution, should guide government intervention in charitable giving • Reduce regulation of raffles • Reduce bureaucracy of gift aid

16. Context- ICT and social media developments • increasing numbers of young people likely to be giving through ICT • fewer barriers for donors to overcome; more personalised approach • volatility and globalisation of giving; interest in issues, not organisations • interest in volunteering and campaigning, alongside giving money • growing importance of donors seeing direct impact and having meaningful dialogue

17. Context- ICT and social media developments • direct giving to projects; potential disintermediation of charities • virtually no transaction costs • reduced control of brand and communication by charities • implications for fundraisers and investment advisers • implications of ‘cloud computing’ for civil society organisations’ own infrastructures • trustees and CEOs’ understanding of these developments.

18. Context- new ways of giving • Integrate giving into people’s lives • Opportunities for this in financial services’ transactions, direct debit escalators, rounding up at supermarket check outs, text messaging • Potential of giving circles

19. Work in progress • What do you think? • What recommendations should the Commission be developing?

20. Contact details Belinda.pratten@ncvo-vol.org.uk is the NCVO lead richardgutch@richardgutch.com is the Secretary to the Commission (since April 2010)