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“A modern charity” IN “The changing landscape”

“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

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“A modern charity” IN “The changing landscape”

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  1. “A modern charity” IN “The changing landscape” What might it mean for the overall charity ecosystem?

  2. 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

  3. 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

  4. Universal features of a ‘modern charity’? A strategic culture Financially sustainable Transparent and accountable Strong focus on outcomes and public benefit

  5. Payment by results • 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: • Will anyone want to buy and make use of our products and services? • Are there enough people out there who will want to buy what we do? • Can we provide our services within prescribed costs and quality guidelines?

  6. 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

  7. 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

  8. ‘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

  9. 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

  10. 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)

  11. 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?

  12. It’s all about retaining public trust and confidence 2005 Mean Score: 6.3 2008 Mean Score: 6.6 Don’t trust them at all Trust them completely Source: Ipsos MORI • Charity must retain its distinctive brand if public trust • is to remain high

  13. 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

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